Capital One Trading Volume Drops 39.36% to 152nd Position Amidst Discover Acquisition Progress

On April 14, 2025, Capital One Financial Corporation (COF) experienced a trading volume of $516 million, marking a 39.36% decrease from the previous day. This placed the company at the 152nd position in terms of trading volume for the day. The stock price of Capital One Financial Corporation (COF) rose by 0.96%.

Capital One's acquisition of Discover Financial is progressing towards approval. Initially, the U.S. Department of Justice scrutinized the $35.3 billion deal due to concerns about banking sector consolidation and competition in the subprime credit market. However, the DOJ has shifted its focus to the impact on consumers with no credit history, indicating a potential lack of a strong case to block the merger. Shareholders have approved the deal, but it still requires regulatory clearance from the Federal Reserve and the Office of the Comptroller of the Currency. The narrowing spread between Discover's stock price and the deal value suggests growing investor optimism about the deal's completion.

The acquisition would create the largest U.S. credit card company by loan volume, with both Capital One and Discover issuing credit cards and accounting for under 20% of consumer credit card balances. Discover's proprietary card network, which charges merchants a fee for processing transactions, is a key attraction. Capital One currently uses Visa and Mastercard, but the acquisition could allow it to switch some business to the Discover network, potentially enhancing its negotiating power with the dominant network players. Additionally, Capital One's capabilities in credit card fraud protection and detection could be deployed more widely across the Discover Network, driving up revenues for the combined entity.