$1.2B Given To Discover By The Treasury

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Mogul of Pineapples
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$1.2B Given To Discover By The Treasury

Postby Mogul of Pineapples » Wed Mar 18, 2009 6:59 pm

In December the Discover CEO said he expected to ask for 400M to 1.2B from the TARP funds for the company. On Monday it was announced they got on the high end of that amount -- $1.2 billion -- in exchange for 10 year warrants to buy 20.5 million shares and about 1.22 million shares of preferred stock up front. I'm not sure what percentage of the company this represents but $1.2 billion sounds like a significant chunk of Discover based on their current marketcap.
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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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
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Postby Multi-Purpose » Thu Mar 19, 2009 5:10 pm

I'm surprised Discover needed bailout money when they already got a couple billion from the Visa/Mastercard antitrust settlements recently. That is a lot of money for a company of their size to get. They must be hurting bad then if that wasn't even enough to cover losses.
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Postby AnthonyBarone » Tue Mar 24, 2009 1:01 pm

Stock is at 6.36 thats a third of what it was a year ago at this time. Trust me this government dilution has been priced in already.

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Postby Cucumber » Wed Jun 03, 2009 2:32 am

Now Discover is almost back at ten bucks.

Don't make a panic mistake with the financials if we go through this again. Everyone sold B of A and Citi at a buck or two and their prices multiplied many times in just a few months.
Stop talking crap about him!

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