Capital One Financial Corp. agreed to buy Discover Financial Services in a $35 billion all-stock ... [+] deal to create the largest US credit card company by loan volume.© 2024 Bloomberg Finance LPThis week’s announcement that Capital One COF plans to acquire Discover caused much debate about what this potential union could mean for consumers. This is a very important issue that needs to be explored carefully. I hope that these financial institutions do not rush into a marriage; instead, they need a long en ...

Key PointsCapital One proposed a $35.3 billion all-cash acquisition of Discover Financial Services, potentially reshaping the credit card industry.Discover's third-party network combined with Capital One's banking status opens up product opportunities akin to American Express.Capital One CEO plans to gradually transfer Capital One's debit cards from Mastercard's network to Discover's.5 stocks we like better than Capital One FinancialWhat’s in your wallet? In the not-so-distant future, it might be a card iss ...

In this articleDFSCOFCapital One CEO and Chairman, Richard Fairbank.Marvin Joseph| The Washington Post | Getty ImagesCapital One's recently announced $35.3 billion acquisition of Discover Financial isn't just about getting bigger — gaining "scale" in Wall Street-speak — it's a bid to protect itself against a rising tide of fintech and regulatory threats.It's a chess move by one of the savviest long-term thinkers in American finance, Capital One CEO Richard Fairbank. As a cofounder of a top 10 U.S. bank by a ...

Group 1: Acquisition Overview - Capital One announced its plan to acquire Discover Financial Services for $35.3 billion, which would be the fifth-largest deal in U.S. bank M&A history if approved [1][6] - Discover's shares surged over 12% following the announcement of the acquisition [1] Group 2: Historical Context of Major Bank M&A Deals - JPMorgan Chase's acquisition of Bank One in 2004 remains the largest U.S. bank deal at $56.88 billion [2] - Bank of America purchased FleetBoston Financial for $47.69 billion in 2004, expanding its presence in the Northeast [3] - NationsBank merged with Bank of America in a $43.09 billion deal in 1998, creating the largest commercial banking organization in the U.S. at that time [4] - The merger of Citicorp and Travelers Insurance Group in 1998 created Citigroup in a $36.03 billion deal [5] Group 3: Market Implications - Analysts suggest that Capital One's acquisition of Discover could potentially create the largest consumer credit card issuer by loans outstanding [7] - Regulatory concerns may arise due to recent events in other industries, but the competitive nature of the card market makes the combination appear reasonable [7]

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Key TakeawaysCapital One's $35.3 billion acquisition of Discover Financial stands to shake up the financial services industry, making the combined company a major player in credit cards.The company could displace JPMorgan Chase as the dominant credit card lender, based on current card loan data.With a boost in investment from Capital One, Discover could better take on Visa and Mastercard, which are the dominant credit card brands in the U.S.The deal, however, will face regulatory hurdles.The proposed $35.3 ...

Capital One Financial's $35.3 billion deal for Discover Financial would create new competition for payments behemoths Visa and Mastercard, potentially helping smoothen the path for regulatory approval, analysts said. The all-stock deal announced on Monday would give Capital One access to Discover's network of payments processing and settlement services, allowing it to cut its reliance on Visa and Mastercard, which have come under fire for their fees.While legal experts expect the deal - the biggest in the g ...

Senator Elizabeth Warren has urged regulators to block Capital One’s $35bn takeover of Discover Financial, arguing that combining two of the US’s largest credit card companies would harm consumers and challenge financial stability.The blockbuster deal would inevitably lead to higher costs and fees for cardholders, according to the leftwing senator.Richard Fairbank, chairman and chief executive of Capital One, has claimed the planned acquisition amounts to “a singular opportunity to bring together two very s ...

Capital One Financial (COF 0.71%) shocked the financial industry by announcing that it has agreed to acquire fellow credit card-focused bank Discover Financial Services (DFS 14.78%) in an all-stock transaction.This deal combines two of the largest players in the credit card industry and creates some interesting possibilities for efficiency as well as long-term growth. Here's a rundown of what investors should know about the acquisition and what it could mean over the long run.Details of the dealAs mentioned ...

Tuesday, February 20th, 2024We begin a new holiday-shortened trading week today with pre-market futures slightly down overall. Traders and investors continue to come to grips with what these higher-than-expected CPI and PPI numbers from last week mean, if they in fact mean anything (they could be a temporary seasonal wrinkle to be ironed out over time). The Dow, S&P 500 and Nasdaq are all trading -0.3% or thereabout at this hour. The last week of trading has presented similar challenges, though the S&P rema ...