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Capital One to acquire Brex for $5.15B

reuters.com

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Re: Capital One to acquire Brex for $5.15B

#141

Post by aprilthird2021 »

xp84 wrote: post #90
c2h5oh wrote: post #70

Earlier quoted context omitted.

Majority of EU population. Even in US debit is more popular than credit in 18-25 age bracket.

(Frame of reference: US only) That's a shame, given 18-25 is just the age where a credit card skimmer or online card fraud causing a big fraudulent withdrawal from your checking account, and weeks of waiting to get it back, could be devastating. This has happened to people in my family (likely from gas stations) but we only use credit cards except to pull cash from ATMs, so we only suffer a temporary dip in our avail…

Most 18-22 year olds are living alone for the first time and have just set up their first bank account and are spending all their time focused on studies and trying to get an internship, so they aren't focused on the difference between credit card and debit card, plus they don't spend a lot out anyways

Re: Capital One to acquire Brex for $5.15B

#142

Post by maest »

SOLAR_FIELDS wrote: post #120
reaperducer wrote: post #111

Earlier quoted context omitted.

fraudulent withdrawal from your checking account, and weeks of waiting to get it back I've had this happen to me twice in about 25 years. Neither bank made me wait weeks. The most recent one (with a giant megabank) issued a provisional credit in under an hour. There seem to be a lot of people in this thread who have never actually been through this and are just apeing what other people say online. U.S. banks largely…

The key with debit cards is the incentive misalignment. With credit, it’s the bank that loses out, not you. With debit, it’s you. Until the consequences are equaled by legislation, there’s no world where they get equal treatment by the bank

With credit, it's the merchant who loses out. They get bullied by the credit card provider to eat losses.

Relatedly, the credit card system is truly a tragedy of the commons situation.

It's a ~2% drag on the economy for what? For some silly points with constrained value and an excuse to not build better financial infrastructure.

The frustrating thing is that, given the current equilibrium, you're a sucker for not using a credit card - you end up subsidising those who do.

Re: Capital One to acquire Brex for $5.15B

#143

Post by maest »

anonymars wrote: post #126
SOLAR_FIELDS wrote: post #120

Earlier quoted context omitted.

The key with debit cards is the incentive misalignment. With credit, it’s the bank that loses out, not you. With debit, it’s you. Until the consequences are equaled by legislation, there’s no world where they get equal treatment by the bank

To add on to that: if someone fraudulently uses your credit card, it's the issuer's money that's now missing and they need to get it back. If someone fraudulently uses your debit card, it's your money that's now missing that you need to get back. Hopefully things don't start overdrawing your account in the meantime.

How come this is not a problem in Europe? Credit cards make same promises there, but usage is greatly diminished.

Re: Capital One to acquire Brex for $5.15B

#144

Post by barbazoo »

weird-eye-issue wrote: post #63
LgWoodenBadger wrote: post #35

Capitalone is going to need something to make up for switching all their debit cards from MasterCard to Discover

Who in the world uses debit cards

Not uncommon in Canada as far as I can tell. Lower fees for the merchant which I care about when buying locally.

Re: Capital One to acquire Brex for $5.15B

#145

Post by hibikir »

anonymars wrote: post #130
verdverm wrote: post #14

They refused my business because I didn't have SV VC money Chase got it instead, but they are losing it next month because of their shenanigans and greed Wish crypto hadn't been co-opted by the same people and worse

> Chase got it instead, but they are losing it next month because of their shenanigans and greed Well, on a related note: https://oag.ca.gov/news/press-releases/attorney-general-bont... "Capital One marketed its 360 Savings accounts as “high interest” accounts with “one of the nation’s best savings rates”...However, while interest rates rose nationwide...Capital One kept the interest rates for its 360 Savings account…

America's banks enjoy pulling a bait and switch on HYSAs: They will create new account types with better rates, while they let their old ones become uncompetitive. Citi has pulled this too.

Unless you really think you might need the money immediately, chances are that keeping your money in a brokerage account and using a money market fund (say, VMFXX or something like that) will lead to less headaches with rate manipulation, as the funds aren't playing games with the general public.

Re: Capital One to acquire Brex for $5.15B

#146

Post by greyw »

coliveira wrote: post #140
bflesch wrote: post #38

Earlier quoted context omitted.

It's as easy as some VC bros desperately searching for a bigger fool and finding it. Most likely CapitalOne management consists of friends with the VCs. It's just another case of the principal/agent problem and normalized white-collar fraud in US tech.

I don't know why the downvotes, that's most probably what happened. These deals are rarely done for some economic reason, it's mostly because somebody knows someone else who can do it and get mutual benefit, a legalized version of fraud.

So you are saying VC bros are defrauding Capital One shareholders?

Re: Capital One to acquire Brex for $5.15B

#147

Post by SilverElfin »

itake wrote: post #139
rahimnathwani wrote: post #133

Earlier quoted context omitted.

Brex has been around for a long time, so employees will have been issued stock options with vastly different exercise prices. Early employees' options will have value, but more recent options are likely underwater.

options can only last 7 years, but brex was founded in 2017.

When the options expire do they give new equivalent ones to the employees that hung on? Otherwise what’s the point?

Re: Capital One to acquire Brex for $5.15B

#148

Post by spike021 »

myvoiceismypass wrote: post #125
spike021 wrote: post #43

Earlier quoted context omitted.

Now I'm wondering if I should've accepted an interview with them. For a while Brex was spamming me with recruiter emails like no other company had done before it.

If it was in the last half decade, your potential stock would be halved with this purchase by C1

yeah, early 2022 if i'm remembering correctly.
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