Capital One obtained approvals from bank regulators on Friday for its acquisition of $ 35 billion in Discover Financial – an agreement which, according to analysts, could have large -scale advantages beyond the club’s hold. Wells Fargo’s Research News analysts said Greenlights in the Federal Reserve and the Currency Controller Bureau highlights a softer regulatory environment under the Trump administration. This augurs well for investment banking companies in large American banks such as its other name of Goldman Sachs portfolio. In a Sunday note, analysts described the merger of capital discovery as a “compensation event” for more banking offers which should probably “launch a new banking consolidation”. They added: “Approval is a deposit on improving the regulatory environment of the new administration.” Wells Fargo research analysts said discovers would not only increase the potential for ou profits, but will also provide “more than enough cushion to protect it” from an uncertain macroeconomic environment. Analysts reiterated their purchase equivalent rating on capital shares, which said that he had all the necessary approvals and plans to close the discovery purchase on May 18. Capital One, which reports the profits after Tuesday’s closing bell, has three main segments: credit cards, consumer banking and commercial banking. He obtains most of his income from credit cards. The development of the merger was not sufficient to stimulate financial actions, because the concerns concerning the so-called reciprocal rates of President Donald Trump continue to vibrate the market. Capital One shares, which increased by more than 5% shortly after the opening on Monday, reversed lower and spent the afternoon around the flat line. Goldman changed little after the opening, but saw the drops accelerate as the S&P 500 has flowed more than 3%. COF 1Y Mountain Capital One 1 year Big Picture arriving in 2025, the investors hoped that Trump’s milder position on antitrust issues would lead to more mergers and acquisitions (M&A) and initial public offers (IPO). But with pricing and recession concerns, agripping the market, the activity of the agreements did not rebound as much as expected during the president’s first months of mandate. Investment banks earn money by offering mergers and acquisitions consulting services and an introduction to the Introduction on the Stock Exchange. Example: increased uncertainty about the prospects of the economy disrupted the plans for renowned stock exchange such as Fintech Klarna and the Stubhub ticket platform during the last month. Last week, Goldman also posted lower revenues than expected for his investment banks division during the first quarter. The CEO, David Solomon, acknowledged that the expectations of the agreement have not yet taken place. “We are entering the second quarter with an operating environment that is clearly different from that earlier this year,” said Solomon at the post-benefit call conference. Business customers are “concerned about significant short -term and longer term uncertainty that has forced their ability to make important decisions,” said the executive. In the end, we are delighted that banking regulators have decided to move forward with the discovery agreement. This is a key reason why the club started a position in Capital One. The acquisition should support the growth in profits and the multiple expansion of long -term profits. At the end of the transaction, Capital One, a major full -fledged credit card issuer, will owner the discover payment network, which will reduce its dependence on Mastercard and Visa. On Monday, we added to our Capital One position. “We obtained the catalyst we wanted in Capital One,” said Jim Cramer during the morning meeting. “The stock has not moved (a lot). This is an opportunity.” GS 1Y Mountain Goldman Sachs 1 year like analysts, we also hope that it is a positive sign on the American regulatory backdrop. Less transactions blocked by regulators means more increase for the crucial activities of the Goldman investment bank. But for a material rebound, more clarity on the pricing policy is necessary. “What Goldman excels is helping customers in a period of turbulence, and they did very well there,” said Jim after the company’s income last Monday. “But … when you take a look at the investment bank, they just don’t do much money.” Fortunately, weakness was offset by Goldman’s negotiation activities due to the volatility of the stock market. WFC 1y Mountain Wells Fargo 1 year finally, the club holding Wells Fargo should also benefit from a more indulgent regulatory scheme. Wells worked to convince the Fed to raise the active ceiling of $ 1.95 billion imposed in 2018 for misdeeds at the bank which preceded the mandate of the CEO Charlie SCHARF. We believe that Scharf and his team have done a great job to clean things. This is only a matter of time until the active cap is lifted, which would allow Wells to extend its balance sheet. When this happens, Wells can increase his business based on budding expenses such as investment banks and not count so strongly on interest -based income, which are at the mercy of the Fed monetary policy decision. (Jim Cramer’s Charitable Trust is long COF, GS, WFC. See here for a full list of actions.) As an abundance at the CNBC Investing Club with Jim Cramer, you will receive a commercial alert before Jim is doing a business. Jim is waiting for 45 minutes after sending a commercial alert before buying or selling a stock in the portfolio of his charitable trust. If Jim spoke of a stock on CNBC TV, he waits 72 hours after issuing the commercial alert before running the trade. The above information of investment clubs is subject to our terms and conditions and our privacy policies, as well as our warning. No obligation or fiduciary duty exists, or is created, due to your reception of the information provided in relation to the investment club. 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The screens display logos and commercial information for Capital One Financial and Discover Financial, because traders work on the prosecution on the New York Stock Exchange on February 20, 2024.
Brendan McDermid | Reuters
Capital One Guaranteed approvals for bank regulators on Friday for its acquisition of $ 35 billion Discover financial – An agreement that analysts believe may have large-scale advantages beyond the club’s outfit.
