Discover antitrust settlement reached

All about Discover & Diners Club - talk about their credit card deals such as the More, Miles, Escape, and others.
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AnthonyBarone
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Discover antitrust settlement reached

Postby AnthonyBarone » Wed Oct 15, 2008 5:19 pm

You folks may have seen on here that I own Discover stock so I keep an eye on them like a hawk now. I saw they got an antitrust settlement yesterday from Visa and Mastercard. The lawsuit was for $6 billion and was set to go to trial this week and they were suing because Visa and M.C. wouldn't allow member banks to issue Discover cards.

Amex did a settlement like this not too long ago and took home a good $4 billion from it. They haven't announced the amount Discover gets from this one but I would say it's got to be at least half that.

This is a big deal because Discover is only a $5 billion company so a settlement like that will mean a heck of a lot of money for them. Now I want to see this stock price go up before I lose my shirt completely.


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Mogul of Pineapples
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Postby Mogul of Pineapples » Sat Oct 18, 2008 4:39 pm

I think this money will be especially helpful to Discover in a time like this if more defaults are expected with credit cards. That will be a nice chunk of change to cover those delinquent accounts.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

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AnthonyBarone
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Postby AnthonyBarone » Sun Oct 19, 2008 4:27 pm

I hope you're damn right on that pineapple.

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Postby Floppster » Sun Oct 19, 2008 6:37 pm

Well I presume that Discover will win this lawsuit just like Amex did. I doubt that Discover will get 5 Billion since they are just not large enough. Keep in mind that Amex is Worldwide. However als 1/2 Billion would be a nice settlement for them. Let's see what happens
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Mogul of Pineapples
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Postby Mogul of Pineapples » Fri Oct 31, 2008 12:19 am

The settlement was $2.75 billion but Morgan Stanley gets over half of that. They were the company that owned Discover before it was spun off as a seperate company. Discover still gets around $1.25 billion which is impressive for a company the size of Discover that is worth about 4x that amount.

I'm curious what their law firm got from the settlement? I found the name of the firm which is Constantine Cannon LLP. In 2003 they also won largest antitrust settlement in history for the Re Visa check settlement.
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

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Postby Multi-Purpose » Sat Nov 01, 2008 12:56 am

Now the Amex settlement from Visa/MC was to be paid quarterly. Is their settlement with Discover similar or will it be one lump sum?
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AnthonyBarone
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Postby AnthonyBarone » Thu Nov 06, 2008 9:22 pm

To be honest I don't give a rats ass who the lawyers are. All I care about is them getting the money so their stock can head back up. I'm underwater here this thing needs to go up.

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Postby bozell » Wed Nov 19, 2008 2:40 am

are banks going to issue discover cards now like some are doing now issuing amex cards?



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