Judge Tosses The Card: Visa-Mastercard Swipe Fee Settlement Reportedly Rejected
Portfolio Pulse from Lekha Gupta
A U.S. District Judge has dismissed a $30 billion antitrust settlement involving Visa and Mastercard, which aimed to cap fees charged to merchants. This decision may lead to further negotiations or a trial. The settlement was opposed by numerous merchants and trade groups, who argued it provided minimal relief and maintained excessive control for Visa and Mastercard.
June 26, 2024 | 1:20 pm
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NEGATIVE IMPACT
The iShares U.S. Financial Services ETF, which includes exposure to Visa and Mastercard, may experience short-term volatility due to the dismissal of the $30 billion antitrust settlement.
The ETF holds significant positions in Visa and Mastercard, and the legal uncertainty surrounding these companies could lead to short-term volatility in the ETF's price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Mastercard's $30 billion antitrust settlement has been dismissed by a U.S. District Judge, potentially leading to further negotiations or a trial. Merchants argued the settlement provided minimal relief.
The dismissal of the settlement introduces uncertainty and potential legal costs for Mastercard, which could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Visa's $30 billion antitrust settlement has been dismissed by a U.S. District Judge, potentially leading to further negotiations or a trial. Merchants argued the settlement provided minimal relief.
The dismissal of the settlement introduces uncertainty and potential legal costs for Visa, which could negatively impact its stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
The SPDR Select Sector Fund – Financial, which includes exposure to Visa and Mastercard, may experience short-term volatility due to the dismissal of the $30 billion antitrust settlement.
The ETF holds significant positions in Visa and Mastercard, and the legal uncertainty surrounding these companies could lead to short-term volatility in the ETF's price.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50