billion

Capital One Sued by US Government, Accused of Cheating Millions of Customers out of $2,000,000,000 in Interest

Published

2 months ago

January 25, 2025

The Consumer Financial Protection Bureau (CFPB) is filing a lawsuit against the ninth-largest bank in the US for allegedly misleading and cheating customers out of billions of dollars in interest.

The CFPB alleges Capital One misled consumers into believing that its product known as “360 Savings” was offering the best and the highest interest rates in the US.

The CFPB, however, says Capital One kept the interest rates on the 360 Savings account low even as they were rising across the country. In the process, “Capital One avoided paying more than $2 billion in additional interest to millions of customers because of these actions.”

While marketing the 360 Savings account as offering attractive rates, Capital One simultaneously launched a similarly named product that was promising significantly higher rates, according to the CFPB.

“Around the same time, Capital One created a virtually identical product, “360 Performance Savings,” that differed from 360 Savings only in that it paid out substantially more in interest—at one point more than 14 times the 360 Savings rate. Capital One did not specifically notify 360 Savings account holders about the new product, and instead worked to keep them in the dark about these better-paying accounts.”

CFPB says that Capital One deliberately took steps to prevent 360 Savings account holders from finding out about the 360 Performance Savings account.

“For example, Capital One named and marketed the two products similarly; it eliminated nearly all references to the 360 Savings account product on its website and replaced them with references to the essentially identical 360 Performance Savings account, without notice that 360 Savings continued to exist as a distinct product; it excluded 360 Savings account holders from a marketing campaign advertising 360 Performance Savings to Capital One’s other existing customers; and it forbade its employees from proactively telling 360 Savings account holders about 360 Performance Savings.”

The lawsuit seeks to stop Capital One’s alleged unlawful conduct and offer compensation to harmed consumers if successful. The financial regulator’s director, Rohit Chopra, says,

“The CFPB is suing Capital One for cheating families out of billions of dollars on their savings accounts. Banks should not be baiting people with promises they can’t live up to.”

Capital One boasts a little over $483 billion in total assets as of September 30th of 2024, according to the Federal Reserve.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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billion

Traders Pour $6,500,000,000 Into Group of Assets in Just One Week – Here’s Where the Capital Is Going

Published

1 month ago

February 8, 2025

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New numbers show retail investors bought billions of dollars in equity funds last week, as fears over the Chinese AI app DeepSeek triggered major market volatility.

Data from Emerging Portfolio Fund Research (EPFR), Haver Analytics and Deutsche Bank shows traders specifically poured $6.5 billion in US technology sector funds in just seven days.

Adam Kobeissi, founder and editor-in-chief of The Kobeissi Letter, says the tech sector boom is part of an overall deluge of capital into equity funds at large.

“Total equity fund inflows reached ~$25 billion last week. Bullish sentiment is extremely strong right now…

In fact, bullish sentiment is so strong that a record 54% of financial assets are now allocated to US stocks. This is nearly DOUBLE levels seen in 2008 while debt investments have fallen to a record low 18%. Equity allocation is officially above the 2001 Dot-Com bubble peak.”

Demand for gold and Bitcoin ETFs is also strong, as President Trump takes action on tariffs.

Kobeissi says the market flows are a signal that more volatility is incoming.

“Positioning is at extremes as we begin another trade war. Currently, 41% of revenue in S&P 500 comes from outside of the US. This is the highest since 2013 and significantly above 2018-2019 levels in the last trade war.

Furthermore, most of the buying has been concentrated in technology stocks. 30% of US imports from China are in the computer and electronic category. Not to mention US chip exports to China and Singapore which are also in the spotlight. This market will be HIGHLY tradable.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Assets

Billionaires Pour ~$1,777,000,000 Into Three Assets in Major Portfolio Overhaul: Report

Published

2 months ago

January 11, 2025

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Several billionaire money managers have modified their portfolios and poured about $1.8 billion into new assets, according to a new report.

Billionaires Philippe Laffont, Stanley Druckenmiller, Chase Coleman, Stephen Mandel and Larry Robbins are accumulating AI-centered equities, reports The Motley Fool.

The investors have specifically targeted US semiconductor and software giant Broadcom (AVGO), purchasing a total of 1,728,646 shares valued at about $1.47 billion in the third quarter of last year.

The firm’s AI revenue has surged in recent months, powering a 125% rise in the stock over the last year.

The wealthy investors have also purchased roughly 1,749,613 shares of Amazon, worth about $245 million, as the company’s cloud platform Amazon Web Services (AWS) implements generative AI solutions for customers.

Lastly, the billionaires have bought 621,445 shares of Taiwan Semiconductor Manufacturing (TSM), worth about $62 million, betting on the world’s largest chip manufacturer.

The billionaires’ new plays in artificial intelligence come as analysts at PwC forecast the total addressable market for AI will hit $15.7 trillion by 2030, as the groundbreaking technology transforms business and manufacturing worldwide.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Apple

Billionaire Warren Buffett Abruptly Pours $563,000,000 Into Three Assets After Ditching Apple, Bank of America

Published

3 months ago

December 21, 2024

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Billionaire Warren Buffett just poured more than half a billion dollars into three assets.

After dumping huge positions in Apple and Bank of America and hoarding $325 billion in cash, new SEC filings show the Berkshire Hathaway chairman and CEO has bought $405 million of Occidental Petroleum (OXY).

Occidental Petroleum is a global energy company involved in oil and gas exploration and production, with further ventures in chemicals and low-carbon initiatives.

OXY is down 21% since the start of the 2024, dropping from $60.05 to $47.13 at time of publishing.

Meanwhile, Buffett has also purchased $113 million in Sirius XM Holdings (SIRI) and $45 million in VeriSign (VRSN).

Sirius XM offers satellite and streaming radio services across North America, with its stock down 57% since the start of 2024, from $54.90 to $23.08.

VeriSign is a global provider of domain name registry services and internet security solutions, with shares down 1.35% year-to-date, from $201.56 to $198.84.

Buffett completed purchases of the three companies last week and was required to report the buys immediately because Berkshire now owns more than 10% of each company.

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