America’s big banks are having a banner week, except for Capital One

The CFPB sued it and accused it of “cheating” customers out of $2 billion worth of interest. Then today business account holders suffered a disruptive outage.

Matt Phillips

1/16/25 2:59PM

Small-business owners suffered infuriating disruptions of access to their Capital One business accounts on Thursday, just days after the bank was sued by the Consumer Financial Protection Bureau, which accused the bank of “cheating” customers out of more than $2 billion worth of interest payments.

Company spokespeople did not return requests for comment on the extent and duration of the outage, though Capital One did acknowledge a stream of complaints online.

We are experiencing a technical issue with a third-party vendor that is temporarily impacting some account services, deposits, and payment processing for portions of our consumer, small business, and commercial bank.
— Capital One (@AskCapitalOne) January 16, 2025

The bank’s slump stands in stark contrast to its peers, with strong fourth-quarter earnings sending the KBW Bank Index up 6.1% so far this week.

On Reddit, several commenters said they experienced an inability to receive direct deposits, and others said that their entire business account appeared to have disappeared from their Capital One app.

Comment
byu/Zealousideal_Skirt18 from discussion
inCapitalOne_

That’s somewhat consistent with what other users have said elsewhere.

Why is capital one business account down for 24 hours, the accounts have disappeared and I called in yesterday and your rep said it’s down and being worked on. There is no public information on this hit a bunch of people on Reddit are complaining , I’ve been impacted too. @NFIB
— Sameul Ahsan (@AhsanSameul) January 16, 2025

It’s unclear if the outage is weighing on the stock on Thursday. It was down in line with other finance and credit-card companies such as Synchrony Financial and Discover, which Capital One is attempting to buy. The merger is set to close early this year.

Nia Warfield10h

Starbucks issues apology after viral “Bearista” cup meltdown

Holiday cheer turned into chaos this week for Starbucks after the coffee giant’s new “Bearista” holiday cup sent fans into a frenzy.

Dropped alongside its 2025 holiday menu, the $30 beanie-wearing glass bear tumbler sparked long lines, sellouts, and even in-store scuffles before Starbucks stepped in with an apology.

“The excitement for our merchandise exceeded even our biggest expectations,” the company said in a statement to People. “Despite shipping more Bearista cups to our coffeehouses than almost any other item this holiday season, the Bearista cup and some other items sold out fast.”

Within hours of launch, frustrated fans flooded Starbucks’ social media pages and even store hotlines. Some customers waited in line before dawn and others said their stores received only a handful of cups. In one Houston location, the craze even turned physical, with police reportedly called to break up a brawl. Meanwhile, the cup is already reselling on sites like eBay, with listings topping $600.

“We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused,” Starbucks said. While in-store customers may be upset, investors seem happy about the viral hit, as the stock has risen over 3% on Friday.

If you’re still hoping for a Bearista at market price, that may not be on order: the chain didn’t disclose how many cups were made or whether a restock is planned.

Hyunsoo Rim11h

Target tells workers to smile, wave, and greet shoppers if they come within 10 feet of them

Target just rolled out a new rule for store employees: “smile, make eye contact, and greet or wave” when a shopper comes within 10 feet — and if they get closer, within four feet, “ask whether they need help or how their day is going,” according to a new Bloomberg report.

Dubbed the “10-4 program” internally, the rule mirrors rival Walmart’s own 10-foot policy, formalizing behavior Target had previously only encouraged.

Target Mandates Worker Smiles, Friendliness to Boost Sales

Hyunsoo Rim

LIMITED LIFE COMPANY

12h

Half of new US companies disappear within 5 years — and only 1 in 3 makes it to year 10

Survival depends on more than luck, from where it starts, to what it does, to when it’s born.

Millie Giles13h

Monster surges on energy drink buzz, while Celsius sinks on distribution concerns

Shares of Monster Beverage climbed 5% after the bell on Thursday, and held most of those gains into early trading on Friday, following strong Q3 results.

The energy drink giant topped market expectations, with quarterly sales up 17% year over year to $2.2 billion and adjusted net profits growing 41% to $524.5 million — 11% ahead of Wall Street’s estimates. In the report, Monster highlighted its zero-sugar line and new product launches, with a stack of novel flavors already released this year, as bright spots.

During a call with analysts, Chief Executive Hilton Schlosberg said that the global energy drink category “remains healthy with robust growth,” The Wall Street Journal reported, adding that demand for more affordable caffeinated drinks is rising as coffee has become “really expensive.”

Meanwhile, rival beverage business Celsius saw shares fall as much as 23% on its Q3 results yesterday — despite beating expectations, with revenue jumping 173% — largely due to concerns about a change in the company’s distribution channel, as its newly acquired Alani Nu brand joins the PepsiCo distribution network.