Discover is now part of Capital One

Post by gruez » Mon, May 19, 2025, 4:51 PM UTC

xyst wrote: post #18

digdugdirk wrote: post #3

I 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

Post by jedbrooke » Mon, May 19, 2025, 4:52 PM UTC

christophilus wrote: post #6

I 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.

Post by trollbridge » Mon, May 19, 2025, 4:56 PM UTC

jedbrooke wrote: post #23

christophilus wrote: post #6

I 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.

as I understand it, Discover gets to charge higher fees on debit cards (than eg visa and mc) due to some regulatory carve out, so capital one wants to take advantage of this and Discover’s payment network

Post by josefritzishere » Mon, May 19, 2025, 4:58 PM UTC

colechristensen wrote: post #16

josefritzishere wrote: post #2

[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.

Post by Boogie_Man » Mon, May 19, 2025, 5:02 PM UTC

mplewis9z wrote: post #15

christophilus wrote: post #6

I 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.