Capital One Financial Corporation (COF) Secures $5.15 Billion Brex Agreement

Group 1 - Capital One Financial Corporation (COF) announced the acquisition of fintech company Brex for $5.15 billion, which is expected to diversify its offerings beyond consumer credit into corporate cards and cost control [2] - The acquisition is structured as a nearly 50-50 cash and stock deal and is anticipated to be completed by mid-2026 [2] - Following the acquisition announcement, COF shares experienced a decline of 1.5% after an initial drop of over 5% [2] Group 2 - In the fourth quarter, COF's net interest income increased by 54% to $12.47 billion, contributing to a rise in quarterly profit [3] - Net income available to common shareholders rose to $2.06 billion, or $3.26 per share, compared to $1.02 billion, or $2.67 per share, in the previous year [3] - CEO Richard Fairbank expressed concerns that a proposed 10% cap on credit card interest rates could limit credit access and spending, potentially leading to a recession [3] Group 3 - Capital One operates as a financial holding company providing services in three divisions: credit card, consumer banking, and commercial banking [4]