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...It has argued that the tie-up would produce a stronger competitor among card networks. Discover’s is the smallest after Visa, Mastercard and American Express....
...JPMorgan Chase spent about a year discussing a possible deal with Discover Financial before Capital One agreed a $35bn bid for the credit card company, as the largest US bank pursued ways to get control...
...That’s when he got a call from James Robinson III, who was then the chief executive of American Express and the biggest power broker on Wall Street....
...American Express shares are close to record highs, up 40 per cent over the past year....
...Discover is a combined credit card payment network and card-issuing bank. It ranks fourth as a network behind the titans Visa, Mastercard and American Express....
...I’m talking, of course, about credit cards points that can be exchanged for travel perks and all manner of other goodies....
...Credit card delinquencies are rising in the US. There is a proposed cap on how much card issuers can charge for late payments....
...“For over a decade, credit card giants have been exploiting a loophole to harvest billions of dollars in junk fees from American consumers,” said Rohit Chopra, CFPB director....
...Americans have gorged on billions of dollars of credit card debt over the past three years....
...Merchants are currently able to charge an extra fee for consumers who use American Express cards, but Visa and Mastercard have blocked sellers from doing so for their users....
...The merger would reduce the ranks of the top 10 US credit card companies, leaving fewer options for consumers....
...American Express trades at six times book value while Capital One is below 1.5 times. Credit card plumbing is arcane but very lucrative....
...Citigroup said spending on retailers’ credit cards, such as Home Depot, fell in the first quarter, while spending on Citi’s own credit cards continued to rise....
...Chief among them: the airline’s long-standing credit card deal with American Express....
...Capital One and Discover are two of the biggest credit card lenders, behind JPMorgan Chase and Citigroup....
...Barclays is relying on American consumers to help it achieve that aim and is targeting an $8bn increase in US credit card lending in the next three years....
...We have no power over the tastes they express yet are compelled to make a decision to display or to discard....
...But if your net worth is negative, the big increase in the cost of your car or credit card loan is going to bite....
...“[PBMs] are acutely aware of their situation: everybody in the world hates them and they are looking for friends,” said Douglas Holtz-Eakin, president of the American Action Forum, a right-leaning think-tank...
...American Express shares dropped nearly 4 per cent in pre-market trading, after revenue missed expectations, provisions for credit losses tripled and profit topped forecasts....
...But American Express chief executive Steve Squeri found himself facing particularly worrying circumstances....
...American Express beat profit estimates in its latest quarterly earnings as its affluent card holders continued to spend, but warned of growing credit losses....
...Back in March 2022, EU leaders committed to set deadlines for phasing out export credit to fossil fuels by December 2023....
...In other words, it’s not that Americans don’t accept the economy is improving: even when they do, they don’t give him any credit for it....
...This explains the underwhelming reaction to American Express boss Steve Squeri reporting another quarter of record revenues and earnings. Consumer spend is up....
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