For a long time it was assumed that Morgan Stanley would sell the Discover card unit. Then CEO John Mack came on board and surprised people by deciding not sell. Now, it looks like the unit is going to be spun off. The timing is right; Discover racked up its best results ever in fiscal 2006--revenue and profit soared. So you would have to think that a publicly traded Discover would fare pretty darn well. The spin off will be structured as a tax-free dividend to shareholders. Morgan Stanley will not retain an equity stake. Stockholders certainly seem to be happy about the move. Once again, credit goes to Mack. He actually turned it into a growth vehicle.

For more:
- here's a MarketWatch article