New York, January 22, 2026, 21:05 EST — Market closed.
- After a volatile session sparked by its Brex deal and quarterly earnings, Capital One shares ended up 1.8%.
- The lender struck a deal to acquire corporate card fintech Brex for $5.15 billion, looking to expand its foothold in business payments.
- Washington’s fresh debate over a one-year 10% cap on credit-card interest rates is giving investors something to ponder.
Shares of Capital One Financial ended Thursday up 1.8%, closing at $235.07. The stock saw volatile moves throughout the day, driven largely by the announcement of its Brex acquisition and the release of its fourth-quarter earnings.
Capital One struck a $5.15 billion cash-and-stock deal to acquire fintech Brex, aiming to expand its presence in corporate cards and expense management. The move also signals a shift away from consumer credit at a challenging time for card lenders. The bank’s net interest income surged 54% to $12.47 billion, reflecting stronger margins between loan earnings and deposit costs. (Reuters)
The timing is crucial since the White House has provided scant details on how the proposed one-year cap of 10% on credit-card interest rates would be enforced, or if lenders would have to follow it. According to a Reuters report, Bank of America and Citigroup have floated the idea of launching new cards capped at 10%, signaling how fast the industry is strategizing around the proposal. (Reuters)
Capital One framed the Brex acquisition as a shortcut into business payments. “Acquiring Brex accelerates this journey,” said Capital One founder and CEO Richard D. Fairbank. Brex CEO Pedro Franceschi described the deal as a way to “supercharge our next chapter.” The company expects to close the transaction by mid-2026, with Franceschi staying on to lead Brex once it’s done. (Barchart)
Capital One posted fourth-quarter earnings of $2.13 billion, or $3.26 per share. Adjusted earnings hit $3.86 per share, falling short of Wall Street’s estimates. On the revenue side, adjusted figures reached $15.58 billion, beating forecasts, according to an AP earnings snapshot using Zacks data. (WTOP News)
Analysts had already grown more positive ahead of the earnings release. Morgan Stanley bumped its price target on Capital One to $300 from $280, maintaining an “Overweight” rating—suggesting the stock is set to beat the sector—according to a note reported by TheFly. (TipRanks)
Thursday’s tape captured the tug-of-war: earnings momentum and a shift toward business spending drew investor interest, yet the deal increased execution risk and kept the spotlight on funding and credit costs.
The bigger “but” comes down to politics. If a 10% cap shifted from talk to actual law, lenders might pull back on credit, cut rewards, or push fee-heavy products — any of which could squeeze growth and profits.
Brex operates on a different beat compared to a traditional card issuer. Merging a fast-paced fintech platform with a regulated bank isn’t straightforward, especially when corporate spending cools off and customer loyalty wavers.
Traders are set to focus on any new clues about the fate of the rate-cap push and whether it makes it into law. They’ll also keep an eye on fallout from Friday’s U.S. data. At 8:30 a.m. ET, the Bureau of Economic Analysis will drop state GDP and personal income numbers. (Bureau of Economic Analysis)
After Friday, all eyes shift to the Federal Reserve’s January policy meeting on Jan. 27-28. That date holds weight for lenders since their loan yields, funding costs, and credit appetite hinge on where rates are headed. (Federalreserve)
