Morgan Stanley Details Plans for Discover Credit Card Spinoff

Discover credit card will soon be kicked from its nest at Morgan Stanley, forced to navigate the cruel world on its own.

Morgan Stanley’s filing with the SEC says that Morgan Stanley won’t have any stake in Discover Financial Services, the fourth-biggest U.S. credit-card brand, after the transaction is done.

According to Bloomberg.com, Morgan Stanley announced the spinoff last December. John Mack, chief executive officer of the investment firm, shelved plans for the transaction in 2005 shortly after he took over because Discover provided Morgan Stanley with steady earnings and diversification. By the end of last year, he’d decided shareholders would be better off with two separate companies.

David W. Nelms, a veteran Discover Card executive, will serve as chairman and chief executive officer of the Riverwoods, Illinois-based credit-card company. Rivals include American Express Co., MasterCard Inc., and Visa International, the world’s biggest card network.