2024-03-08 08:00:00 ET
Summary
- Credit card financing has become much more risky.
- Merging Capital One and Discover is not creating a stronger whole.
- You must engage in due diligence in the banks that house your hard-earned money.
Last month, Capital One ( COF ) announced that it would acquire Discover ( DFS ) in an all-stock transaction valued at $35.3B. Some experts said that the acquisition would create a much stronger entity. We disagree. We believe that such a transaction implies that both companies have major issues given the current stage of the credit cycle in the U.S. In this article, we will take a closer look at COF and DFS, given that both companies have recently released their 10-K reports....
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For further details see:
The Capital One/Discover Merger: Two Wrongs Don't Make A Right