Fact Sheets

Bailout Bank Bio: Discover

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March 17, 2009

Programs: Budget & Tax

Discover Financial Services building Discover Financial Services is a financial services company with headquarters in Riverwoods, Illinois. It was founded in 1986 and is primarily known for its credit cards. In December, the company received approval from the Federal Reserve to become a bank holding company. This transformation allows Discovery Financial to participate in the Treasury Department’s Capital Purchase Program. Under the program the company expects to receive $1.2 billion from the Treasury in exchange for preferred stock and warrants. As of the most recent transaction report published by Treasury for early February, that transaction had not been completed. Discover was at one time a part of Morgan Stanley.

The recent financial slump has caused many companies in the credit card industry to consider raising interest rates or cutting customers who aren’t charging enough. At the same time many are paying off less of their credit card bill’s outstanding balance, with many simply not paying at all leading to shrinking profits for credit card companies.

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Bailout Bank Bio: Discover


Federal Equity Investment	$1.2 billion
Total Revenue	$6.43 billion (2007) $6.96 billion (2008)
Net Income	$588.6 million (2007) $927.8 million (2008)
Number of Employees	11,900
Corporate Headquarters	Riverwoods, Illinois
Business Sector	Financial Services
Officers and Directors	David W. Nelms, Chairman and Chief Executive Officer Other Officers and Directors
Corporate Website	http://www.discoverfinancial.com/
Executive Compensation	Discover Finiancial Services