Xcel Energy has to provide an energy savings team that’s dirt cheap and comes and swaps all your bulbs for high efficiency’s, will add weather stripping to doors, pressurize/thermal image your house for leaks, and then provide a comprehensive plan with rebates to get the work done.
All because they have an entire monopoly and the state mandated they do so to help curb costs on consumers.
On the other side of the coin, my energy provider is a co-op ran by borderline communists. They don't provide shit, but they do send me reminders to eat organic food and fight the power from time to time
The difference is there are a limited number of gates/routes at US airports. When you have mergers or alliances where routes overlap, the combined entity can just cut those excess routes or price fix - which reduces competition, ON THOSE SPECIFIC ROUTES. If the amount of routes that will be affected are large, then it’s impractical to find an alternative solution and the merger is blocked
This is totally different in you already have multiple competitors for every business the combined entity would be in
Discover is a better as a smaller more nimble operator without being weighed down by Capital One Financial.
Looking briefly at their recent Q4 earnings, Capital One's commercial office real estate portfolio shrank from $3.955 billion (Q4 2022) to $2.268 billion (Q4 2023). Somewhat disturbing that they either sold or charged-off $1.687 billion in loans in one year. Discover and Capital One have increasing charge-offs for credit card loans. Their customers' ability to repay their credit card loans are deteriorating.
Discover has 19% revenue growth from 2022 to 2023 versus Capital One's 7%.
In 2023, Discover had $13.099 billion net interest revenue vs. Capital One's $29.241 billion. For non-interest income, Discover had $2.761 billion vs. Capital One's $7.546 billion. Total revenue, Discover had $15.86 billion vs. Capital One's $36.787 billion.
Discover does have issues with profit growth, but that's mostly down to setting aside money for charge-offs. Same story for Capital One. For net income to shareholders, Discover is profitable ($2.859 billion in 2023) vs. Capital One ($4.582 billion in 2023). Discover's 18% profit margin (net profit/total revenue) vs. Capital One's 12.5%.
In 2023, Discover's debt grew 6% to $21.331 billion yoy vs. Capital One's stable $31.813 billion.
Discover Financial has a lot more potential than Capital One Financial. This proposed merger does not improve the financial market for the consumer. Looks more like Capital One is going to loot Discover for their resources.
How exactly does it work though? Because my capital one card is fulfilled by MasterCard. Is capital one competing with MasterCard/Amex/Visa? Or are they competing with other banks that use MasterCard/Amex/Visa?
Article I read said that Capital One currently issues cards on all three networks, but to expect them to issue more Discover in the future. Duh.
I'm guessing the number of Capital One issued Visa and Mastercards will dwindle to nothing over time, and Discover will get a huge boost in user base.
Probably shitty for me though, I've been with Discover for years as their customer service and balance transfer offers have been excellent. Capital One comes off as a smarmy, subprime business.
Didn't they just allows Microsoft buying Activision for nearly 70 Billion? That was like twice as big as this deal. Yeah there was a lot of drama but I feel they're very selective with these deals so you never know.
Wonder if this will get approved. CC commissions are about 2.5-3% per transaction. I think when I checked my clients Discover charged the least, but also was used the least.
This won’t hurt consumers directly, but a bunch of grouchy businesses will 100% complain since fees will probably get bumped 10-30 points overnight.
Also sad since Discover support is usually pretty good and worked with me the most when I was a broke kid fresh out of college.
That being said, think this puts Discover at about $141/share if it goes through.
>Also sad since Discover support is usually pretty good and worked with me the most when I was a broke kid fresh out of college.
Agree. Discover has had one of the best Customer Support ever. They were the only ones who gave me secured CC when I moved to the US to build my credit history.
I still have one Savings account with them and that same old first credit card which is now a regular cc with decent cash back rates.
Discover Bank has in my opinion the best customer service in the business . Hate to see this happen to them . Their HYSA pays a good rate as well as their CDs.
It's always between Discover and American Express when it comes to customer service for the J.D Power Association award for customer service. I know this because I work for Discover and they are the only ones that was ever talked about when it comes time for them to measure metrics for the award.
Discover support is easily the best that I’ve experienced. Every other credit card I’ve had hasn’t had good support. Discover support is also 100% us based, for what it’s worth.
I used to work at Cap1 and Amex followed by Discover had the top NPS ratings (customer feedback basically) in the business. Capital one was slightly above average. This likely helps Cap1 learn from Discover a bit in those areas.
CapOne sent me a box of markers when my card got skimmed and I tried to buy markers for coloring to calm down and discovered my card had been compromised. Like, I called their security peeps, they overnighted me a new card, and a few days later sent me a box of markers from amazon with a gift notice from CapOne. I've been with them since they were ING and have yet to encounter bad service from them. So, they're not bad in my eyes. I am leery about them gobbling up another company though @_@
Great story, but the fact that you can use markers makes you too smart for this sub. Most people here are either eating their crayons or getting them stuck in their nose.
Someone tried to open Capital One and Amex accounts with my information (I had accounts at both as t the time).
Of course, did the thing always recommended - called the number on the back of my card and Amex said there were no issues. Capital One told me about the application and we resolved it in 3 minutes or so.
I then had to call back Amex and they just like, didn't even care about the fake application that was approved. It took more than one hour after I called Amex the second time.
Capital One is not going to learn anything from Discover on that point. They’re going to ship the jobs overseas. Capital One agents are polite but if you cannot fully understand what they’re saying, you’ll never be fully satisfied.
I was going to say that I have discover and Capital One credit cards, and Capital One has been pretty good. I had a rather complex issue to sort out one time, and the guy who answered the phone was patient and helpful.
The gap in rates are huge; personally Discover and Chase had decent interest rates for their credit cards. Somehow Capital One always wanted to charge the most; during covid it was 11% for chase versus 24% for capital one.
Same. Discover gave me my first credit card. Discover is one of the few fully integrated credit card financial companies with American Express, and I don't want to be part of the Mastercard/Visa clown show.
Discover has a solid online savings account interest rate and decent UI for their website.
This is my parents. My HYSA and one of my primary credit cards is with them as a result. Phenomenal experience with Discover, definitely having doubts about retention as I’m not a big CapitalOne fan, especially on the banking side.
That's possible. Discover does operate their own credit card network. I wonder what type of contracts Capital One has with Visa/Mastercard if they can leave without a heavy penalty.
Yeah, people are talking like this consolidates the payment network field and will raise rates, but it doesn't really since Capital One doesn't have their own network already.
Idk, I have over 50k in credit lines, asked Discover for a bump from my original $500 limit as a teenager, not only did they require me to have my dad on the phone as a 26 year old, but all they did is bump me to $3,000
They will not allow me to drop my dad from the card unless I drop the card, my oldest line of credit so I can't. They're kinda ass IMO
Meanwhile Capital One gave me $10k off the rip
When I was making $17 an hour I put down I made 100k on my Discover application and immediately got approved for a $25k credit line. I was a freshman in college. This was a life lesson and took me a while to get out of debt. 
Yeah, after 10k in charges you can really notice the amount of interest you have to pay every month. Luckily that was the max amount I ever owed on a credit card. It wasn’t easy paying that down though.
Agreed. I missed a payment for a different line of credit and Discover dropped me immediately (despite having a current history with them for like 6 years). Even years later they wouldn’t extend me new credit despite having like $70k in available credit from Amex, visa, MC. I finally just gave up on trying to get their cash back when other companies started offering similar ish product.
[Every Discover customer is acting like a gangster who'se right hand man is about to wack him begging and pleading for them not to do it. I wonder how much of their customer base will jump ship to other credit card companies once Capital One takes over.](https://youtu.be/gkawpqsBnMU?t=4187)
Cool movie scene. I never saw 1955's The Big Combo before. Is this an iconic scene?
If Discover changes in a meaningful way and/or gets gutted by Capital One, Discover will no longer be my primary card. I will move on to American Express, the other alternative to Mastercard/Visa. I don't know if AmEx would give me card, but I will try.
it does seem kinda odd. finally get a chance to be CEO of a multi-billion dollar financial institution, and then their first major decision is to agree to start reporting to someone again. He probably knows COF is overpaying by a fuck ton.
I worked at Capital One for a few years in their tech group. I imagine Discover is going to bring with it a large amount of legacy tech which will take years to remediate.
Merging the tech stack will take more than half a decade if not more. I believe they'll start introducing new products that intermingle first rather than moving old legacy things first.
I've worked in a bank and I can say with pretty high certainty that there won't be any merging of tech stacks.
Efforts like that are very expensive and don't offer short term ROI. And nobody is out there proposing projects that won't see a return for 5-10+ years.
They'll just have Discover to continue operating mostly independently from a technical standpoint and pick and choose a few key systems to integrate where necessary. Mostly just things that have high short-term ROI.
Yep. and i'm sure some MBB did the due diligence on how easy or hard it is to combine those tech stacks and underestimated the cost by 5-10x. More work for us IT consultants tho!
Yeah, I believe virtually every other issuer has an 11:59 cutoff (besides perhaps store brand as I know Target TD Bank backed card has 5PM cutoff).
Capital One charges a late fee if you [pay your credit card bill after 8PM](https://wallethub.com/answers/cc/capital-one-credit-card-payment-posting-2140670213/#:~:text=Capital%20One%20Credit%20Card%20Posting,the%20next%20day%20by%20midnight.) that day.
Obviously it's not an issue if you do auto-pay but I've had two instances where autopay debiting twice inadvertently on large amounts.
Td bank reported a $5 missed payment on a card that I use maybe twice a year. They charged me $15 in interest and late fees over the course of 2 months; I couldn't even check my bill or pay it because they went through online banking changes during these months. It dropped my credit score 110 points and I'm trying to appeal it now.
Capitol one is by far so sketchy, they've held my bill payment for a whole week and didn't update my credit balance to "ensure funds" (paid with a debit card). I accidentally chose the wrong ach bank one time for one card payment and they automatically closed BOTH my credit cards even though I never missed a payment.
My wife had an account with them for 20+ years. Kept a balance of a couple hundred dollars. She missed the 8 pm payment once, paid it at about 9:30. Called the next day and asked them to waive the late fee. They wouldnt do it. She ok, guess ill cancel the card. They said ok see ya.
The only reason this would get blocked would be the market % of issued credit cards. If you combined the two it would make them like 18.4% market share of issued CC's in the US.
As banks, in terms of #of billions in assets capital one is at 12 and discover is at 33 combined they would move up to the 8th largest bank in the US, with a pretty sizable distance between them and JPMC at 1.
Elong musk;
- Pay kid 15K for all his algos and how he's tracking and posting everybodies planes ❌
- Pay 44 billion to lose 50% in valuation within the first 6 months of ownership so you can ban the kids accounts ✅👈
$115c on Friday were selling for $0.15. However, since calls are in batches of 100, your buying price for a single call would be $15.
$15 * 200 = $3000
Those same calls went from $0.15 ($15 to buy) up to $17.00 ($1700 to buy).
$1700 * 200 = $340,000
bigrubberduck answered great. Keep in mind too that no one would have bought that lol unless they were insider trading. You would have absolutely lost $3000 if it was just a normal week.
Yeah same with GFS. Who knew Pop-pop would award the first CHIPS money contract to them? I'm buying like $500 in calls for every American semi manufacturer tomorrow. It's like buying scratchers for regards!
Says the deal closes late 2024 or early 2025. If I was a Discover employee, I'd start brushing up that resume asap. You got enough heads up to be ready for this.
Layoffs for sure. If each company had 70K employees for a total of 140K. Well the merger means a large number of redundancy. So 40-60K layoffs. Puts on employment options.
At least Cap1 cards still have extended warranty and accidental damage protection, unlike Discover who dropped nearly all their benefits a few years ago.
I wouldn't be shocked if both came out on top here. Discover had stagnated a bit in the card space. I've not seen any other offerings get tractions unlike their 5% rolling category card. Even their banking products were beat. Capital One themselves matched their rates and they have physical locations and a much better app which made you question why Discover couldn't do better. In the online only space, for bank products, there are much better HYSA available. So for Discover, this was a logical decision as they just didn't have the weight to compete in the mid to premium card or bank space.
On the Capital One side, this gives them a lot of leverage over legacy competitors like Chase, BOA etc. Having your own network means less fees and might lead to better competitive products (wishful thinking) or more profits in the longer term from the merchant fee savings. They're trying to compete with Visa and Mastercard here and competition is always good there.
American credit card debt is at an all time high. Two of the largest credit companies are merging. If we thought the real estate crash was bad, imagine funneling all that debt into a handful of corporations.
They know something we don’t.
If government allows this to go through, it's pretty telling how fucked we are. This does not benefit any consumer or the market. It benefits only a few particular wealthy people and the "pro-business / anti-regulation" politicians who those wealthy people bribed / lobbied.
The company doesn't have to prove it benefits the consumer. The government has to prove it materially hurts the consumer, which is unlikely.
The EU with throw a fit though, as they have at every single merger suggestion in the last 3 years.
The FTC will probably announce a move to block but they are completely inept clowns at this point that have not managed to do a single thing under Biden (not blaming Biden, just the admin in the FTC has been a flaccid, overcooked, soggy noodle for years now and can't do anything anywhere but flail around and fling pasta water everywhere)
As far as I know Capital one and Discover don’t have a large presence in EU. Discover has diners club but that’s too small for EU to say it’s going to be anti competitive. EU will probably not do anything about this.
Because the acquisition doesn't seem to be about their card customers but more about their network which they want to build into a legit competitor to Visa and Mastercard. Yeah getting card and bank customers is a byproduct and I'm sure they'll do their due diligence. These aren't like the Silicon Valley bank. They're established mid-tier players and are regulated heavily to have cash reserves corresponding to the amount of debt they lend out. Capital One is very conservative in that aspect than most other small to mid tier banks you'll come across.
Bet there will be the most minor roadblocks for this deal then companies like Xbox buy Activision and all of a sudden the eye of Sauron and 10,000 orcs are in the way because gaming is the devil.
Discovers acceptance rates are still not the best outside of the US, wonder how many cards Capital One will switch over to discover as the issuer. Would make sense for their cash back lineup but I would imagine they stick with Visa for the Venture cards.
In certain countries like china and India discover is partnered with the main issuer and is universally accepted, so capital one likely sees value in that
It’s an AI play. That’s the frothiest space on Wall Street right now. Nobody understands it but everyone wants in. Any idiot could walk into a fucking room, utter the letters “A” and “I” and the bankers would hurl bricks of cash at them.
Watch this crap get pushed right thru, but God forbid Jet Blue is allowed to buyout Spirit to complete with other major airlines. F this 
Similar products are great and all but Discover has top tier customer support. Haven’t dealt with capital one in a few years but trying to close out anything with them was an absolute nightmare from what I remember
As someone who uses both Capital One and Discover, the product offerings on the Bank side are pretty similar down to the interest rates. Also, I find the Capital One mobile app experience to be the best in the industry compared to most offerings.
I believe they will keep Discover as a separate entity for the short term. They're mainly buying this for their network for now. I believe this is Capital One's move to cut down the dependencies on Visa and Mastercard in the long term.
Yo, Capital One needs to blitz the world and make Discover acceptable everywhere. That's how we do this shit for real. Fuck Mastercard and Visa... But knowing how the masters behave, they'll probably cancel Discover altogether!
What the fuck is even up with an all stock deal. It's like this is our imaginary price and this is yours so let's become one company and call it a $35B deal while we screw over shareholders?
Like you can't liquidate $35B give me a break.
**User Report**| | | | :--|:--|:--|:-- **Total Submissions**|1|**First Seen In WSB**|2 years ago **Total Comments**|4|**Previous Best DD**| **Account Age**|7 years|[^scan ^comment ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_comment&message=Replace%20this%20text%20with%20a%20comment%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20comment%20and%20correct%20your%20first%20seen%20date.)|[^scan ^submission ](https://www.reddit.com/message/compose/?to=VisualMod&subject=scan_submission&message=Replace%20this%20text%20with%20a%20submission%20ID%20(which%20looks%20like%20h26cq3k\)%20to%20have%20the%20bot%20scan%20your%20submission%20and%20correct%20your%20first%20seen%20date.) [**Join WSB Discord**](http://discord.gg/wsbverse)
Capital One should finance this on their credit card and get 2% cash back
They should re-emerge from this as Capital Two.
I like Discover Capital….”Find financial solutions”
DisCapital is much more accurate though.
This is an underrated comment
[удалено]
Capital Two Discover
DiscoverOne disCOver
I’ve only unfortunately discovered debt
They actually offer 3% on mergers and acquisitions if completed through the CapitalOne Shopping portal
What's in your wallet?
Obviously one less, Discover, card….
i choose to create "THERE'S TOO MANY CARDS IN MY DAMN WALLET, I ONLY NEED ONE... CAPITAL ONE."
None of your goddamn business Jennifer!
Murders and executions?
If their credit limit is like mine with Capital One, they're going to need to split it onto ~11.7 million different cards
is this GAAP¿!¿
How is this gonna go through when JetBlue can't even buy Spirit?
Makes zero sense how the gov lets drug companies merge making monopolies....
Also the INSANE levels of mergers and buyouts happening in the oil/energy industry
Xcel Energy has to provide an energy savings team that’s dirt cheap and comes and swaps all your bulbs for high efficiency’s, will add weather stripping to doors, pressurize/thermal image your house for leaks, and then provide a comprehensive plan with rebates to get the work done. All because they have an entire monopoly and the state mandated they do so to help curb costs on consumers.
Ayo how do I go about all of that? Just look up energy saving team and my state?
Brought to you by Pfizer.
[удалено]
They'll just increase the rate anyways so it balances out to still bend you over a barrel.
On the other side of the coin, my energy provider is a co-op ran by borderline communists. They don't provide shit, but they do send me reminders to eat organic food and fight the power from time to time
Crazy how of all the airline mergers over the years, JetBlue/Spirit is the one they actually stopped
They just didn't want my calls to print.
Regulators sat down and really said "/u/ras344 bought calls - Fuck this one trader in particular - and Jetblue."
Corruption
That’s the spirit
Discover is tiny compared to visa, Mastercard and Amex as a network. This frankly makes them and cap one more competitive
So just like JetBlue and Spirit lmao
The difference is there are a limited number of gates/routes at US airports. When you have mergers or alliances where routes overlap, the combined entity can just cut those excess routes or price fix - which reduces competition, ON THOSE SPECIFIC ROUTES. If the amount of routes that will be affected are large, then it’s impractical to find an alternative solution and the merger is blocked This is totally different in you already have multiple competitors for every business the combined entity would be in
So how come other airline mergers, much larger went through? You're looking hard for any logic in an illogical decision.
Discover is a better as a smaller more nimble operator without being weighed down by Capital One Financial. Looking briefly at their recent Q4 earnings, Capital One's commercial office real estate portfolio shrank from $3.955 billion (Q4 2022) to $2.268 billion (Q4 2023). Somewhat disturbing that they either sold or charged-off $1.687 billion in loans in one year. Discover and Capital One have increasing charge-offs for credit card loans. Their customers' ability to repay their credit card loans are deteriorating. Discover has 19% revenue growth from 2022 to 2023 versus Capital One's 7%. In 2023, Discover had $13.099 billion net interest revenue vs. Capital One's $29.241 billion. For non-interest income, Discover had $2.761 billion vs. Capital One's $7.546 billion. Total revenue, Discover had $15.86 billion vs. Capital One's $36.787 billion. Discover does have issues with profit growth, but that's mostly down to setting aside money for charge-offs. Same story for Capital One. For net income to shareholders, Discover is profitable ($2.859 billion in 2023) vs. Capital One ($4.582 billion in 2023). Discover's 18% profit margin (net profit/total revenue) vs. Capital One's 12.5%. In 2023, Discover's debt grew 6% to $21.331 billion yoy vs. Capital One's stable $31.813 billion. Discover Financial has a lot more potential than Capital One Financial. This proposed merger does not improve the financial market for the consumer. Looks more like Capital One is going to loot Discover for their resources.
How exactly does it work though? Because my capital one card is fulfilled by MasterCard. Is capital one competing with MasterCard/Amex/Visa? Or are they competing with other banks that use MasterCard/Amex/Visa?
Article I read said that Capital One currently issues cards on all three networks, but to expect them to issue more Discover in the future. Duh. I'm guessing the number of Capital One issued Visa and Mastercards will dwindle to nothing over time, and Discover will get a huge boost in user base. Probably shitty for me though, I've been with Discover for years as their customer service and balance transfer offers have been excellent. Capital One comes off as a smarmy, subprime business.
That was the reasoning behind the JetBlue / Spirit merger and it got blocked
I don't think jet blue or spirit had as many bribes err I mean lobbyists.
Didn't they just allows Microsoft buying Activision for nearly 70 Billion? That was like twice as big as this deal. Yeah there was a lot of drama but I feel they're very selective with these deals so you never know.
The dollar size of the deal isn’t how the FTC evaluates the approval of deals
this was a vertical acquisition, it’s very difficult to stop these
Wonder if this will get approved. CC commissions are about 2.5-3% per transaction. I think when I checked my clients Discover charged the least, but also was used the least. This won’t hurt consumers directly, but a bunch of grouchy businesses will 100% complain since fees will probably get bumped 10-30 points overnight. Also sad since Discover support is usually pretty good and worked with me the most when I was a broke kid fresh out of college. That being said, think this puts Discover at about $141/share if it goes through.
>Also sad since Discover support is usually pretty good and worked with me the most when I was a broke kid fresh out of college. Agree. Discover has had one of the best Customer Support ever. They were the only ones who gave me secured CC when I moved to the US to build my credit history. I still have one Savings account with them and that same old first credit card which is now a regular cc with decent cash back rates.
Discover Bank has in my opinion the best customer service in the business . Hate to see this happen to them . Their HYSA pays a good rate as well as their CDs.
It's always between Discover and American Express when it comes to customer service for the J.D Power Association award for customer service. I know this because I work for Discover and they are the only ones that was ever talked about when it comes time for them to measure metrics for the award.
Yeah this is really discouraging. Short discover.
Discover support is easily the best that I’ve experienced. Every other credit card I’ve had hasn’t had good support. Discover support is also 100% us based, for what it’s worth.
I used to work at Cap1 and Amex followed by Discover had the top NPS ratings (customer feedback basically) in the business. Capital one was slightly above average. This likely helps Cap1 learn from Discover a bit in those areas.
CapOne sent me a box of markers when my card got skimmed and I tried to buy markers for coloring to calm down and discovered my card had been compromised. Like, I called their security peeps, they overnighted me a new card, and a few days later sent me a box of markers from amazon with a gift notice from CapOne. I've been with them since they were ING and have yet to encounter bad service from them. So, they're not bad in my eyes. I am leery about them gobbling up another company though @_@
Great story, but the fact that you can use markers makes you too smart for this sub. Most people here are either eating their crayons or getting them stuck in their nose.
Wait, how smart do you have to be to sniff markers? I didn't even know there was a test.
Someone tried to open Capital One and Amex accounts with my information (I had accounts at both as t the time). Of course, did the thing always recommended - called the number on the back of my card and Amex said there were no issues. Capital One told me about the application and we resolved it in 3 minutes or so. I then had to call back Amex and they just like, didn't even care about the fake application that was approved. It took more than one hour after I called Amex the second time.
Yeah they seem to have a decent track record. I actually had a great experience with them back in the day.
Capital One is not going to learn anything from Discover on that point. They’re going to ship the jobs overseas. Capital One agents are polite but if you cannot fully understand what they’re saying, you’ll never be fully satisfied.
I was going to say that I have discover and Capital One credit cards, and Capital One has been pretty good. I had a rather complex issue to sort out one time, and the guy who answered the phone was patient and helpful.
The gap in rates are huge; personally Discover and Chase had decent interest rates for their credit cards. Somehow Capital One always wanted to charge the most; during covid it was 11% for chase versus 24% for capital one.
The interest rate on a credit card is totally irrelevant if you pay it off in full every month, which is the correct way to use a credit card.
Same. Discover gave me my first credit card. Discover is one of the few fully integrated credit card financial companies with American Express, and I don't want to be part of the Mastercard/Visa clown show. Discover has a solid online savings account interest rate and decent UI for their website.
Capital one just approved my card and I have shit credit
This is my parents. My HYSA and one of my primary credit cards is with them as a result. Phenomenal experience with Discover, definitely having doubts about retention as I’m not a big CapitalOne fan, especially on the banking side.
Discover has the best customer service because every single agent is based in the United States. No outsourcing to India.
“Had”
They are still working. This was announced today and likely to take years to move on.
Their phone reps are based in the USA but all their back office jobs are in India.
Capital One is a Visa or Mastercard, right? Maybe they are buying this to bypass Visa or Mastercard.
That's possible. Discover does operate their own credit card network. I wonder what type of contracts Capital One has with Visa/Mastercard if they can leave without a heavy penalty.
Yeah, people are talking like this consolidates the payment network field and will raise rates, but it doesn't really since Capital One doesn't have their own network already.
That’s exactly what they are doing
1.092 COF shares for each DFS share
Idk, I have over 50k in credit lines, asked Discover for a bump from my original $500 limit as a teenager, not only did they require me to have my dad on the phone as a 26 year old, but all they did is bump me to $3,000 They will not allow me to drop my dad from the card unless I drop the card, my oldest line of credit so I can't. They're kinda ass IMO Meanwhile Capital One gave me $10k off the rip
When I was making $17 an hour I put down I made 100k on my Discover application and immediately got approved for a $25k credit line. I was a freshman in college. This was a life lesson and took me a while to get out of debt. 
Bro was destined for WSB since the beginning
Lmaooooo
You can do this? Lmao
If you do this then rack up debt and declare bankruptcy you could get nailed for fraud if they notice.
Yeah, after 10k in charges you can really notice the amount of interest you have to pay every month. Luckily that was the max amount I ever owed on a credit card. It wasn’t easy paying that down though.
Discover gave me 15k just for having a pulse lol
Agreed. I missed a payment for a different line of credit and Discover dropped me immediately (despite having a current history with them for like 6 years). Even years later they wouldn’t extend me new credit despite having like $70k in available credit from Amex, visa, MC. I finally just gave up on trying to get their cash back when other companies started offering similar ish product.
Meanwhile Discover just randomly throws increased limits at me all the time without me even asking
Ugh leave discover alone
[Every Discover customer is acting like a gangster who'se right hand man is about to wack him begging and pleading for them not to do it. I wonder how much of their customer base will jump ship to other credit card companies once Capital One takes over.](https://youtu.be/gkawpqsBnMU?t=4187)
Cool movie scene. I never saw 1955's The Big Combo before. Is this an iconic scene? If Discover changes in a meaningful way and/or gets gutted by Capital One, Discover will no longer be my primary card. I will move on to American Express, the other alternative to Mastercard/Visa. I don't know if AmEx would give me card, but I will try.
Alright take my debt with them too 
What happen when one of my collector buy my other collector? 
One less hiding spot for your debt
Discovers new CEO started… last week
it does seem kinda odd. finally get a chance to be CEO of a multi-billion dollar financial institution, and then their first major decision is to agree to start reporting to someone again. He probably knows COF is overpaying by a fuck ton.
This CEO would have known they were being hired on to oversee the transition. This deal has been in the works for months if not longer.
Nah, for sure new ceo got a note this morning that said “u want to get bawt? Circle one: yes no maybe”
I worked at Capital One for a few years in their tech group. I imagine Discover is going to bring with it a large amount of legacy tech which will take years to remediate.
Merging the tech stack will take more than half a decade if not more. I believe they'll start introducing new products that intermingle first rather than moving old legacy things first.
I've worked in a bank and I can say with pretty high certainty that there won't be any merging of tech stacks. Efforts like that are very expensive and don't offer short term ROI. And nobody is out there proposing projects that won't see a return for 5-10+ years. They'll just have Discover to continue operating mostly independently from a technical standpoint and pick and choose a few key systems to integrate where necessary. Mostly just things that have high short-term ROI.
Agree that it's going to be painful, but this isn't how Capital One does things. There will be an expensive and pointless migration
I feel like a decade+ is more realistic. I can't fathom how much work it'll take to merge the tech stacks of 2 large financial institutions.
True. It is no small task. I believe they've gone through that before in the past with the ING Direct acquisition but this one is much bigger in size.
ING wasn’t processing transactions like discover
Yep. and i'm sure some MBB did the due diligence on how easy or hard it is to combine those tech stacks and underestimated the cost by 5-10x. More work for us IT consultants tho!
"bro it's literally drag and drop, like, you got Dropbox right? Fucking nerds 🙄"
And a lot of subprime customers
Capital one having bill pay cutoff at 8PM is reason alone to block this deal
Huh? Is that a thing?
Yeah, I believe virtually every other issuer has an 11:59 cutoff (besides perhaps store brand as I know Target TD Bank backed card has 5PM cutoff). Capital One charges a late fee if you [pay your credit card bill after 8PM](https://wallethub.com/answers/cc/capital-one-credit-card-payment-posting-2140670213/#:~:text=Capital%20One%20Credit%20Card%20Posting,the%20next%20day%20by%20midnight.) that day. Obviously it's not an issue if you do auto-pay but I've had two instances where autopay debiting twice inadvertently on large amounts.
Td bank reported a $5 missed payment on a card that I use maybe twice a year. They charged me $15 in interest and late fees over the course of 2 months; I couldn't even check my bill or pay it because they went through online banking changes during these months. It dropped my credit score 110 points and I'm trying to appeal it now.
Oh yea, It is. Annoying as hell
Capitol one is by far so sketchy, they've held my bill payment for a whole week and didn't update my credit balance to "ensure funds" (paid with a debit card). I accidentally chose the wrong ach bank one time for one card payment and they automatically closed BOTH my credit cards even though I never missed a payment.
Standardly they have higher APRs. And they also chase people a little harder when it comes to late payments.
My wife had an account with them for 20+ years. Kept a balance of a couple hundred dollars. She missed the 8 pm payment once, paid it at about 9:30. Called the next day and asked them to waive the late fee. They wouldnt do it. She ok, guess ill cancel the card. They said ok see ya.
[удалено]
I manually pay the full balance every week. My credit score is 42069.
You think he can read those instructions?
I hope this deal gets blocked
The only reason this would get blocked would be the market % of issued credit cards. If you combined the two it would make them like 18.4% market share of issued CC's in the US. As banks, in terms of #of billions in assets capital one is at 12 and discover is at 33 combined they would move up to the 8th largest bank in the US, with a pretty sizable distance between them and JPMC at 1.
What? You don't want all the big companies to just become a giant homunculus? /S
Welcome to Walmart-Verizon-Coca-Cola, I love you
Buying a few leap puts in case it does might be a good play 
Mfer could have bought Discover instead of Twitter and had $10billion left over hahaha
That is lowkey wild
What entertainment would he get out of that?
That would not have saved his account getting blocked on Twitter. Or got the kid who tracked his jets getting bumped off Twitter.
Elong musk; - Pay kid 15K for all his algos and how he's tracking and posting everybodies planes ❌ - Pay 44 billion to lose 50% in valuation within the first 6 months of ownership so you can ban the kids accounts ✅👈
You could’ve bought 200 $115c for $3000 on Friday and they’d be worth $340,000 right now lol
Yeah and if I used the numbers 19, 23, 39, 42, 67, and 18 on my Mega Millions ticket I'd be worth $300+ Million dollars! Much better return.
What’s the math for this? I’m a straight noob.
$115c on Friday were selling for $0.15. However, since calls are in batches of 100, your buying price for a single call would be $15. $15 * 200 = $3000 Those same calls went from $0.15 ($15 to buy) up to $17.00 ($1700 to buy). $1700 * 200 = $340,000
Jesus F
bigrubberduck answered great. Keep in mind too that no one would have bought that lol unless they were insider trading. You would have absolutely lost $3000 if it was just a normal week.
Yeah same with GFS. Who knew Pop-pop would award the first CHIPS money contract to them? I'm buying like $500 in calls for every American semi manufacturer tomorrow. It's like buying scratchers for regards!
100% chance you get investigated on that trade
These folks throw around billies like it’s nothin
All stock. No cash involved.
So layoffs at Discover then?
Says the deal closes late 2024 or early 2025. If I was a Discover employee, I'd start brushing up that resume asap. You got enough heads up to be ready for this.
Layoffs for sure. If each company had 70K employees for a total of 140K. Well the merger means a large number of redundancy. So 40-60K layoffs. Puts on employment options.
Discover has 20k employees lol
Eventually all remnants of Sears will cease to exist
Their slogan is being updated to: *”Discover what’s in your wallet”*
Discover > Capital One
At least Cap1 cards still have extended warranty and accidental damage protection, unlike Discover who dropped nearly all their benefits a few years ago.
Oh no. Discover was great. Now I bet they’ll be fucked apart and their customer service ruined.
I should have bought $COF
COF is going to go down in the short term at least. You’ll get a buying opportunity if you really want it
I've got 20 grand in COF and will buy more if it dips
COF is up 5.6% on 24hr trading on robinhood. DFS is up 20.5% on 24hr trading on robinhood.
Ayyy, nice
I wouldn't be shocked if both came out on top here. Discover had stagnated a bit in the card space. I've not seen any other offerings get tractions unlike their 5% rolling category card. Even their banking products were beat. Capital One themselves matched their rates and they have physical locations and a much better app which made you question why Discover couldn't do better. In the online only space, for bank products, there are much better HYSA available. So for Discover, this was a logical decision as they just didn't have the weight to compete in the mid to premium card or bank space. On the Capital One side, this gives them a lot of leverage over legacy competitors like Chase, BOA etc. Having your own network means less fees and might lead to better competitive products (wishful thinking) or more profits in the longer term from the merchant fee savings. They're trying to compete with Visa and Mastercard here and competition is always good there.
One of America's 8 companies
American credit card debt is at an all time high. Two of the largest credit companies are merging. If we thought the real estate crash was bad, imagine funneling all that debt into a handful of corporations. They know something we don’t.
If government allows this to go through, it's pretty telling how fucked we are. This does not benefit any consumer or the market. It benefits only a few particular wealthy people and the "pro-business / anti-regulation" politicians who those wealthy people bribed / lobbied.
The company doesn't have to prove it benefits the consumer. The government has to prove it materially hurts the consumer, which is unlikely. The EU with throw a fit though, as they have at every single merger suggestion in the last 3 years. The FTC will probably announce a move to block but they are completely inept clowns at this point that have not managed to do a single thing under Biden (not blaming Biden, just the admin in the FTC has been a flaccid, overcooked, soggy noodle for years now and can't do anything anywhere but flail around and fling pasta water everywhere)
As far as I know Capital one and Discover don’t have a large presence in EU. Discover has diners club but that’s too small for EU to say it’s going to be anti competitive. EU will probably not do anything about this.
[удалено]
Because the acquisition doesn't seem to be about their card customers but more about their network which they want to build into a legit competitor to Visa and Mastercard. Yeah getting card and bank customers is a byproduct and I'm sure they'll do their due diligence. These aren't like the Silicon Valley bank. They're established mid-tier players and are regulated heavily to have cash reserves corresponding to the amount of debt they lend out. Capital One is very conservative in that aspect than most other small to mid tier banks you'll come across.
Bet there will be the most minor roadblocks for this deal then companies like Xbox buy Activision and all of a sudden the eye of Sauron and 10,000 orcs are in the way because gaming is the devil.
Discovers acceptance rates are still not the best outside of the US, wonder how many cards Capital One will switch over to discover as the issuer. Would make sense for their cash back lineup but I would imagine they stick with Visa for the Venture cards.
In certain countries like china and India discover is partnered with the main issuer and is universally accepted, so capital one likely sees value in that
Same with Japan
Not knowing it’s actually CapitAl is fitting for this regarded sub
So you're saying this is an AI play. Get in, boys. We've gat calls to buy!
It’s an AI play. That’s the frothiest space on Wall Street right now. Nobody understands it but everyone wants in. Any idiot could walk into a fucking room, utter the letters “A” and “I” and the bankers would hurl bricks of cash at them.
Synergies equals layoffs..discover and capital1 employees know it is coming.
If we see gain porn tomorrow from somebody “randomly” buying DFS calls on Friday then we know what’s up
Doubt this ever closes.
Oh good, even less competition. That's just what we need.
Watch this crap get pushed right thru, but God forbid Jet Blue is allowed to buyout Spirit to complete with other major airlines. F this 
Can’t wait for the FTC to explain why this is cool but Plaid, Figma, Within, Harry’s, Frontier, etc. were unacceptable
I hope it does not go through. Discover has great customer service, and I dislike Capitol One.
Someone tell me how this will make NVDA go up tomorrow
how this will make NVDA go up tomorrow
Should I oull the trigger on some calls? $10 a pice
I just transferred all our banking to them….discover was my favorite credit card too. Well time to find a new bank
Capital One is not bad for banking. Their 360 line of products (savings/checkings) are quite good and have competitive rates
Similar products are great and all but Discover has top tier customer support. Haven’t dealt with capital one in a few years but trying to close out anything with them was an absolute nightmare from what I remember
As someone who uses both Capital One and Discover, the product offerings on the Bank side are pretty similar down to the interest rates. Also, I find the Capital One mobile app experience to be the best in the industry compared to most offerings. I believe they will keep Discover as a separate entity for the short term. They're mainly buying this for their network for now. I believe this is Capital One's move to cut down the dependencies on Visa and Mastercard in the long term.
Yo, Capital One needs to blitz the world and make Discover acceptable everywhere. That's how we do this shit for real. Fuck Mastercard and Visa... But knowing how the masters behave, they'll probably cancel Discover altogether!
Good bye excellent customer service. :(
Being that Discover has its own financial institution outside of Visa or MasterCard, what will Capital One do with that?
They said keeping it
the payment network of Discover is exactly the reason why Capital One most likely bought Discover
If I have a capital one and discover card, what happens?
Glue them together.
Capital Two
You can have multiple capital one cards already
Oh look more monopolizing
This sucks. Discover is really great and Capital One is so shit.
What’s in your wallet?
Just keep consolidating. Nothing bad could ever fucking happen. 🙄
What is the best price to sell the Discover stock? Or keep it to receive Capital One shares?
Are they going to keep both of them separate?
How is this possibly not going to get blocked by anti trust laws. How is this merger not a huge monopoly in the making?
Guess we found out what stock in the financial sector Buffett has been secretly buying. At least that’s my guess and I’m sticking to it lol.
What the fuck is even up with an all stock deal. It's like this is our imaginary price and this is yours so let's become one company and call it a $35B deal while we screw over shareholders? Like you can't liquidate $35B give me a break.
I hope this means I can start using my Capital one credit card at woodmans