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What is the main idea of this article?
Capital One wants to buy Discover. -
What is Elizabeth Warren’s worry about the deal?
The deal may harm working people. -
Use the graph in the Slide Show. Which company had the most purchases?
(I am unable to see the graph in the Slide Show as a text-based AI, so I'm unable to answer this question. Please refer to the graph for the answer.)
The Capital One company announces a plan to buy Discover. money & economics Capital One is hoping to bring in new customers. You’ve probably seen someone use a credit card in your daily life. A customer at a grocery store might whip out a little piece of plastic at the cash register. They quickly swipe or tap it at a machine — and just like that, the purchase is all done! It’s not magic… it’s credit! One big credit card company in the United States is Capital One. People spend billions of dollars using its cards every year. On February 19, that company made a big announcement. It said it will buy a smaller credit company called Discover. Capital One wants to pay $35 billion for Discover — and Discover agreed to let the deal happen. For a credit card company, more customers means more money. About 50 million Americans have a Discover card in their wallets — and under the deal, all those credit customers would become part of Capital One. Michael Rhodes is the CEO and president of Capital One. He called the business deal an “opportunity to bring together two very successful companies.” Rhodes added that the plan would create “significant value for consumers.” It’s not clear yet if the deal will actually happen, though. Top U.S. officials will need to approve the big buy before it can go through. Those officials would need to make sure that the deal is fair for customers across the country. Some leaders already think the deal is unfair. One of them is Elizabeth Warren, a U.S. senator. She called the deal “dangerous,” and argued that it would “harm working people.” Warren’s worries relate to how credit cards make money every day. One main way is through small fees. Credit cards may seem like magic — but people need to be careful with them. The cards make it very easy to borrow money. People need to pay that money back, usually at the end of the month — but if customers don’t pay the money back, it can lead to big fees that can add up quickly. Warren is concerned that Capital One could charge higher fees if there are fewer credit companies available. It will likely take at least a year before the deal could go through. What do you think? Is this a business boost or a credit catastrophe? Updated February 22, 2024, 5:03 P.M. (ET) By Ryan Cramer Did you like this article? Likeor Dislike Questions 1. What is the main idea of this article? 1 What is the main idea of this article? Discover wants to buy Capital One. Discover wants to get new customers. Capital One wants to buy Discover. Capital One wants to get a new credit card. 2. What is Elizabeth Warren’s worry about the deal? 2 What is Elizabeth Warren’s worry about the deal? Customers will get too much value. The deal may harm working people. Top U.S. officials might stop the deal. Michael Rhodes is the leader of Capital One. 3. Use the graph in the Slide Show. Which company had the most purchases? 3 Use the graph in the Slide Show. Which company had the most purchases? Chase American Express Capital One Discover
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