66°F
weather icon Clear

LETTER: Credit card merger about survival

In response to your Monday editorial: The primary reason Capital One is pursuing Discover has nothing to do with product offerings or access to transaction networks. Credit-card write-offs are increasing at both banks. Capital One customers have lower credit scores so merging with the healthier rival might fend-off insolvency a little longer.

Also, after the combined company eventually does fail, Capital One will be better positioned to claim “too-big-to-fail” status when seeking a bailout.

That said, regulators should approve the merger, but only with caveat that no bailout will be forthcoming if the company then fails. In that scenario, Discover shareholders might become less willing to take on the added risk, and the merger will fail for the right reasons, instead of being scuttled by government fiat.

Don't miss the big stories. Like us on Facebook.
THE LATEST
LETTER: More on 1968

As a cop who was at not only at the 1968 Democratic convention at the Conrad Hilton on Michigan Avenue, but also the Chicago arson fires on the west side, I feel there were many reasons why the city was a tinderbox.

LETTER: Clark County cracks down on street vendors

A lot of us walk or jog in the summer nights when it cools down. The juice vendor was a wonderful break before starting the return half of our exercise. Alas, never more.

LETTER: Where were the banks in the Donald Trump saga?

It is the bank’s full responsibility to fully vet people or businesses that are applying for loans. If bank officials are operating in a criminal, lazy or unethical way, they should be the ones on trial.

LETTER: Joe Biden and Iran

With the threat of an Iranian attack on Israel, the Biden administration issued it’s most terrifying single-word directive to Iran, “Don’t.” Unfortunately, Iran did.

LETTER: Biden’s bungles student loans, the border

Mr. Biden opened the border. He can close the border. If he does not have the authority to close the border, then he did not have the authority to implement his first action, that of opening the border.