Nice summary. One thing you missed was the that towards the end of the first act, Capital One was hit with a Memorandum of Understanding (MOU) from the Federal Reserve, forcing the company to bring its business and credit practices up to the standards of the banking industry. Until that time Capital One was running like a startup, with limited controls that let the company move quickly but make mistakes. Once they became a large player, the Fed said that was no longer going to work. The MOU was a shot across the bow. At the beginning of the second act, much of the company's focus was on building controls that were required by the MOU. This was a painful process, but ultimately created a solid foundation for further growth.
Nice summary. One thing you missed was the that towards the end of the first act, Capital One was hit with a Memorandum of Understanding (MOU) from the Federal Reserve, forcing the company to bring its business and credit practices up to the standards of the banking industry. Until that time Capital One was running like a startup, with limited controls that let the company move quickly but make mistakes. Once they became a large player, the Fed said that was no longer going to work. The MOU was a shot across the bow. At the beginning of the second act, much of the company's focus was on building controls that were required by the MOU. This was a painful process, but ultimately created a solid foundation for further growth.
Totally agree with this miss. It was a seminal moment that set up two decades of success with regulators. Thank you for adding that!
And caused a rift between Fairbank and Morris who was forced out.