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  1. #1
    AnthonyBarone
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    Default Discover antitrust settlement reached

    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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    Reply With Quote Reply With Quote     Oct 15, 08, 3:19 pm
  2. #2
    Mogul of Pineapples
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    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. 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
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    Reply With Quote Reply With Quote     Oct 18, 08, 2:39 pm
  3. #3
    AnthonyBarone
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    I hope you're damn right on that pineapple.
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    Reply With Quote Reply With Quote     Oct 19, 08, 2:27 pm
  4. #4
    Floppster
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    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
    Intellectuals solve problems. Geniuses prevent them.
    - Albert Einstein 1879-1955
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    Reply With Quote Reply With Quote     Oct 19, 08, 4:37 pm
  5. #5
    Mogul of Pineapples
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    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. 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: Citi Thank You Premier
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    Reply With Quote Reply With Quote     Oct 30, 08, 10:19 pm
  6. #6
    Multi-Purpose
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    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?
    Change will not come if we wait for some other person or some other time. We are the ones we've been waiting for. We are the change that we seek.
    -Barack Obama
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    Reply With Quote Reply With Quote     Oct 31, 08, 10:56 pm
  7. #7
    AnthonyBarone
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    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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    Reply With Quote Reply With Quote     Nov 6, 08, 7:22 pm
  8. #8
    bozell
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    are banks going to issue discover cards now like some are doing now issuing amex cards?
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    Reply With Quote Reply With Quote     Nov 19, 08, 12:40 am
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