Discover Receives $1.2 Billion

Discover Financial Services revealed on Friday that it has received $1.2 billion in cash through the U.S. Treasury Capital Purchase Program.
The company announced last December that it would apply for the capital and in January said in a regulatory filing that it was approved.
Discover sold 1.2 million share of its preferred stock and a 10-year warrant to buy 20.5 million shares of its common stock at $8.96 per share.
Discover Financial Services joins hundreds of other financial companies that have received government capital during the economic crisis. The Treasury’s Capital Purchase Program is funneling up to $250 billion into banks.
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