Discover Financial Services said Friday that it had received about $1.2 billion in cash from the Treasury Department through the Troubled Asset Relief Program to boost its liquidity.

Discover sold the Treasury 1,224,558 preferred shares and a 10-year warrant to purchase 20,500,413 common shares at an exercise price of $8.96 each. The preferred stake will pay dividends of 5% for the first five years and 9% after that.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.