>>> > > > WELCOME BACK TO “” SCREECH BOX.”” RESOURCES ONE PURCHASING DISCOVER FINANCIAL SERVICES FOR $35 BILLION IN AN ALL-STOCK BARGAIN. WE HAVE OUR LATEST VISITOR WITH US. EXCELLENT EARLY MORNING. THIS IS THE MOST UP TO DATE DEAL THAT PEOPLE SPOKE ABOUT AS A HIGH TEMPERATURE DREAM FOR A LONG PERIOD OF TIME. IT IS CURRENTLY BELOW. I” M CURIOUS UPON TAKING A LOOK AT SIMPLY THE offer and the headline ITSELF, YOU THINK THIS WILL FUNCTION OR OTHERWISE FUNCTION? WHAT” S YOUR THOUGHTS? >> > GREETINGS. MANY THANKS FOR HAVING ME, ANDREW. WE ARE QUITE FAVORABLY DISPOSED TO THE BARGAIN AND LIKE IT QUITE A WHOLE LOT. CUSTOMER MONEY AND CHARGE CARD ESPECIALLY, ANDREW, IS An ASSET BUSINESS. SCALE IS VERY IMPORTANT. CONSUMER FINANCING WITH THE CYCLE IS An EXCELLENT RISK READJUSTED RETURN SERVICE. IN ENHANCEMENT TO THE COST FINANCIAL SAVINGS, THERE IS AN OPPORTUNITY FOR FUNDING ONE TO ADVANTAGE FROM USING DISCOVER” S BACK-END NETWORK. $60 BILLION IN QUANTITY WHICH IS JUST HOW MUCH CONSUMERS USAGE ON CREDIT RATING CARDS AND THEY ARE ABLE TO BRING THAT TO DISCOVER” S PLATFORM, WE PRICE QUOTE $1 BILLION OF COST SAVINGS THAT FUNDING ONE WILL BENEFIT. FROM OUR POINT OFVIEW, THIS IS A HUGE BARGAIN. THE ASSIMILATION DANGER AND WE HAVE BEEN DOING THIS A LONG TIME, COMPARED TO BANK DEALS IS LESS BECAUSE IN THE TRANSACTIONAL ITEM LIKE CHARGE CARD, YOU WEAR” T NEED TO STRESS OVER RETAINING BANKERS.THE PARTNERSHIP
PIECE IS NOT NEARLY AS MEANINGFUL. IN SPITE OF THIS BEING A$35 BILLION BARGAIN, REALLY LARGE ONE, AMONG THE LARGEST IN YEAR, THE COMBINATION THREAT IS LESS LOVED ONE TO SEVERAL OF THE LARGER FINANCIAL INSTITUTION DEALS IN OUR CAREER. >> > > DISCOVER IS CURRENTLY UP ABOUT$ 14. YOU CONSIDER CAPITAL ONE WHICH IS DOWN. IT IS ALL SUPPLY. THERE IS AN ARBITRAGE CIRCUMSTANCE BELOW. >> > > RESOURCES ONE IS THE JUST ONE TO PAY THIS COST. FROM OUR PERSPECTIVE, IT IS FULL, BUT FAIR. IF YOU THINK CONCERNING THE LONGER-TERM CAPACITY. THE EARNINGS GOING OUT TO 2027 WHICH IS A PHASED IN COMBINED BUSINESS IS ROUGHLY 14% TO 15% TO EARNINGS.THAT IS MEANINGFUL.
THERE ARE REGULATORY CONCERNS YOU WANT TO DISCUSS, BUT FROM OUR PERSPECTIVE OVER THE LONG-TERM, THIS IS A BARGAIN. > > LET ‘ S HIT THE REGULATORY >> PROBLEMS. YOU COULD PICK YOUR PERSON. IF YOU WERE THE TREASURY DEPARTMENT, WHAT DO YOU BELIEVE THIS MORNING? IF YOU ARE LENA CHKHAN, WHAT DO YOU ASSUME? > > I ‘ M An EXPERT, ANDREW >>.’I ‘ M NONE OF THOSE INDIVIDUALS. FROM OUR PERSPECTIVE, WE DON ‘ T COVER DISCOVER. THEY HAVE BEEN HANDLING REGULATORY ISSUES. THIS RESOLVES A POSSIBLE GOVERNING MIGRAINE. WE THINK THAT IS POSITIVE. CAPITAL ONE IS IN THE D.C. AREA. WE ARE OF THE VIEW THEY HAD CONVERSATIONS WITH BANK REGULATORS AND JUSTICE DEPARTMENT AUTHORITIES ON THE DEAL.THAT WILL CERTAINLY BE AN OPEN INQUIRIES AND NONE OF United States REALLY RECOGNIZES. THERE HAS BEEN A LOT OF DEBT CONSOLIDATION IN CARD TO OFFER CONSUMERS THE VERY BEST PRODUCTS AT THE MOST AFFORDABLE COSTS AND THE DEAL ORGANIZATION SIMILAR TO THIS, WE FEEL IT MAKES GOOD SENSE. > > DAVID, LET ‘ S FLIP IT AROUND. ALLOW ‘ S SAY YOU ARE VISA OR MASTERCARD >> OR AMEX THIS MORNING. WE OUGHT TO SET UP JPM AND CITI WITH THE UNDERWRITING ROLE THEY PLAY ON THE PLANET. DO THEY CHECK OUT THIS AND SAY WE HAVE A NEW RIVAL AND THIS IS An ISSUE OR DO THEY SAY THIS IS FANTASTIC AND NOW WE CANISTER SAY TO EVERYONE IN WASHINGTON THAT HAS BEEN UPCOMING AFTER United States THAT WE ARE A MONDAY OPOLY? > > I THINK THERE ARE A NUMBER OF ANGLES WITH VISA AND MASTERCARD. I PUT ON ‘ T COVER THOSE, BUT MY HAD C ASSOCIATE DOES.WE ANTICIPATE THE INTERNATIONAL QUANTITY TO REMAIN ON THE TRADITION GAMERS. THE DOMESTIC QUANTITY AHEAD OFF THE RAILS
. THAT ‘ S WHERE THE$1 BILLION OF SYNERGY ORIGINATES FROM. PARTICULARLY CHASE HAS BEEN AGGRESSIVE IN REQUISITES OF ADVERTISING AND MARKETING SPEND AND’INVESTING IN An EXTREMELY TRANSACTIONAL AND WHAT WE THINK IS A COMMODITY COMPANY. IN ORDER TO DRIVE DEVELOPMENT, YOU NEED A COMPETITIVE ADVANTAGE TO TAKE SHARE AND EXPENSE AND MARKETING ABILITIES AND HEFT.
>> > EXCELLENT MORNING. > > DISCOVER IS NOW UP ABOUT$ 14. > > RESOURCES ONE IS THE ONLY ONE TO PAY THIS RATE. > > DAVID, LET ‘ S FLIP IT AROUND. > > I THINK THERE ARE A COUPLE OF ANGLES WITH VISA AND MASTERCARD.