I think the fact that American Express also issues its own cards is a minor consideration in choosing the network for Chairman card. This product isn't really about transaction fees, but rather about client relationship management. It appears Citigroup created Chairman card to attract and retain clients for Smith Barney. Citi makes serious money from issuing Mastercards to people who carry balances and pay twenty-something percent interest. The Chairman card will never generate that type of margin. Instead it will serve as a tool to tie clients to Smith Barney and give Citi information about their spending patterns. which they can use for additional marketing.

American Express has been doing this same sort of thing for decades. American Express no longer competes with Smith Barney. I do not see any reason Citi would not move the card to the American Express network if it is the best fit for their objective.