[flagged]
That's not Capital One being fined but the CEO himself.
Discover is now part of Capital One
11–20 of 94 posts
Re: Discover is now part of Capital One
#12It’s Ticketmaster and LiveNation all over again.
Business owners going to get gouged.
Customers going to see price of items go up as business owners pass along increased transaction costs.
Yes - this will also impact you even if you don’t have a discover/capital one card.
Re: Discover is now part of Capital One
#13I know nothing. But this is an interesting acquisition. Capital One strikes me as a pretty well run org. Why would they want Discover, who notoriously targets the low end of credit card custom? My guess is that this gives them the ability to increase margins by owning the entire payment layer all the way through distribution. If they slash the fees charged to merchants, this could make them quite a powerhouse.
Matt Stoller seems informative on this in his blog post: https://www.thebignewsletter.com/p/the-fed-is-behind-the-cap...
Re: Discover is now part of Capital One
#14I know nothing. But this is an interesting acquisition. Capital One strikes me as a pretty well run org. Why would they want Discover, who notoriously targets the low end of credit card custom? My guess is that this gives them the ability to increase margins by owning the entire payment layer all the way through distribution. If they slash the fees charged to merchants, this could make them quite a powerhouse.
Well run? Haven’t they had lots of legal issues over the years?
https://en.m.wikipedia.org/wiki/Capital_One#Investigations_a...
Re: Discover is now part of Capital One
#15I know nothing. But this is an interesting acquisition. Capital One strikes me as a pretty well run org. Why would they want Discover, who notoriously targets the low end of credit card custom? My guess is that this gives them the ability to increase margins by owning the entire payment layer all the way through distribution. If they slash the fees charged to merchants, this could make them quite a powerhouse.
Capital One’s personal lending is also notorious for targeting the mid-to-low end of credit card customers. They routinely deny people for credit cards if it looks like the applicant pays off their cards in full every month - they love a customer with a credit profile that has no negative marks but with a moderate debt-to-income ratio that means they’ll get those sweet interest payments.
Re: Discover is now part of Capital One
#16[flagged]
Fining the CEO for not filing the correct paperwork when acquiring large amounts of company stock doesn't really seem like it should block a merger.
Re: Discover is now part of Capital One
#17Re: Discover is now part of Capital One
#18I was wondering when the questionable corporate consolidation would start kicking off under the Trump administration. Have there been any other mergers in the past few months that slipped under the media radar? I honestly expected there would have been some deals waiting in the wings prior to the election just in case.
"Questionable corporate consolidation" has been happening for decades. I do agree it will accelerate under this current orange administration.
Anti-trust laws have been watered down so much or not applied.
This is all because of pseudoscience from neoclassical/neoliberal/reaganomics economic theory
Re: Discover is now part of Capital One
#19I know nothing. But this is an interesting acquisition. Capital One strikes me as a pretty well run org. Why would they want Discover, who notoriously targets the low end of credit card custom? My guess is that this gives them the ability to increase margins by owning the entire payment layer all the way through distribution. If they slash the fees charged to merchants, this could make them quite a powerhouse.
Competing with VISA and the others is their goal here.
This is the correct answer. Discover has a payment network, which will afford Capital One the option to issue cards without relying on Visa or MasterCard. This is what Amex does.
I would assume primarily domestic cards (platinum, quicksilver, savor) will start being issued on the discover network, while travel cards (venture series) will not (initially) because of the high domestic and low international acceptance rate of Discover cards.
Re: Discover is now part of Capital One
#20[flagged]
...because the process started over a year ago, and just got regulatory approval last month? I'm not sure what you're expecting here. Unless that enforcement action specifically barred them from acquiring companies, why should they be prevented from acquiring companies? It's like asking why someone who was fined for speeding could still drive, when license suspension wasn't part of their punishment.
>Capital One announced in February 2024 that it had agreed to acquire Discover Financial in an all-stock deal worth $35.3 billion.[94]
>[...] The deal was approved by U.S. banking regulators in April 2025.[99]