Target Card Business In Play

Back in March, JPMorgan (JPM Quote) paid some $1.5 billion for Kohl's credit card business. But the world has changed, and banks have been hammered on worries that they are stuck with hundreds of billions of dollars worth of bridge loans. Other financial institutions, meanwhile, are facing the unprecedented problem of being unable to roll over short-term commercial paper financing.

It appears unlikely now that financial companies -- the most logical buyers for credit cards -- would aim to purchase credit card debt. On the other hand, it is possible that a hedge fund or distressed investment vehicle might be willing to partner with Target.

The giant retailer's intent now may be to maintain control of the valuable credit card business while unlocking cash. But the structure of such a deal may be the key to whether it gets done -- particularly for a business that may prove dicey in the next few years.