Anyone that has ever traded binary options can probably tell you that often, you have to risk something to get something back, your entire financial plan may lean on the success or failure of one specific item and if it fails, well, your future might not be as bright as you’d once hoped, but if you succeed you might very well be in line for some serious profits.
Such is the case with Capital one, which was, at its onset, what you might call a “one trick pony”, their entire business portfolio consisted of credit cards and no other financial instruments, business or private.
Capital one was spun off of Virginia based Signet Corporation’s credit card division, beginning independent operations in early 1995, it owed much of its early success to the use (sometimes to slightly questionable degrees) of data collection or data mining so that they could better target specific demographics with better targeted credit card offers.
Once Capital one had established their initial foothold in the credit card business, with relative success, they began slowly diversifying their previously one track business mind, using a great deal of the expertise they had already accumulated in data collection to focus their loan offers on very specific customers, concentrating mostly on subprime customers, this custom earned them quite a bit of negative publicity at the time it became commonplace.
Not long after Capital one expanded into various financial areas, with an emphasis on loans and mortgages the US economy was struck by its first major housing crisis in decades, which did not bode well for the company, as they were mostly in the business of lending funds to customers with relatively low probability of being able to repay the debt in question.
Capital one was forced to take a few steps to stay above ground; it closed its mortgage subsidiary and had to loan over $3.5 billion from the US government to help it stay afloat.
Capital one managed to repay its debt within 2 years, but was also fined during the process for filing reports which weren’t fully indicative of its financial status.
In their efforts to recover from the impact of the crisis, Capital one have a made a few purchases in recent years, expanding their business, most notably through the purchase of ING direct, a subsidiary of ING that specializes in branchless banking, basically enabling capital one to offer its variety of services in ways that aren’t physical (internet, telephone, ATM etc.) the merge was not without difficulties but ended up being approved in late 2012.
Capital one, despite having a massive customer base (it is the 8th largest bank in the US) and over $24 billion in revenue, has accumulated a reputation as a bank with poor customer relations, which, at times, has effected not only the public’s perception of it, but has also lead to issues with various law enforcement and government agencies.
But you’re a smart investor; you realize that even bad public perception might make for a good investment in Capital one binary options, all you need to do is keep close watch over the bank’s financial statements, as well as any news items regarding it that may have impact on the rise and fall of prices, do so smartly and you stand to make great profits off the success or failure of the bank, just like the bank often does to its many targeted customers.