FT News Briefing Discover what’s in Capital One’s wallet
Feb 21, 2024
Donald Trump's 2024 campaign faces a drop in small donor support, with numbers plummeting by 200,000 since 2019. In a move shaking up the financial landscape, Capital One has acquired Discover Financial for $35.3 billion, raising questions about competition and regulatory scrutiny. Barclays is also in the spotlight, unveiling its first strategic update in eight years while planning to return £10 billion to shareholders, all amid intense investor skepticism about its future direction. Financial markets are definitely buzzing!
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Capital One Acquires Discover
- Capital One is acquiring Discover Financial Services for $35 billion, primarily to gain access to Discover's credit card network.
- This acquisition represents the largest U.S. banking merger in over a decade.
Antitrust Concerns and Regulatory Scrutiny
- This merger raises antitrust concerns, potentially limiting credit card competition while also increasing network competition against Visa and Mastercard.
- The deal's approval depends on how Capital One addresses these competing regulatory concerns.
Barclays Strategy Update
- Barclays' new strategy involves returning £10 billion to shareholders and improving its investment banking arm's performance with existing resources.
- This update, the first in eight years, aims to address the bank's undervaluation and negative narrative.