The Federal Reserve gave Capital One the green light to buy Discover Financial for $35.3 billion. This major deal will create the largest credit card lender in America, bigger than JPMorgan Chase. The Justice Department already approved this massive merger earlier this month. The company will become the eighth-largest bank in the US with assets worth $660 billion.
The Fed carefully considered how this deal would affect communities, competition, and financial stability before making its decision. The Fed also fined Discover $100 million for charging merchants extra fees. Discover has already agreed to pay $1.2 billion to settle lawsuits about these overcharges. Capital One promised the Federal Reserve it would fix these issues and make things right with affected businesses.
Discover Financial has a history with banking giants, having split from Morgan Stanley back in 2007. Capital One first announced its all-stock offer in 2024. The deal faced tough scrutiny under previous leadership at the Justice Department. The Office of the Comptroller of the Currency also approved the acquisition but added some conditions. They want clear plans to address problems at Discover Bank and help anyone who was harmed.
The Fed carefully considered how this deal would affect communities, competition, and financial stability before making its decision. The Fed also fined Discover $100 million for charging merchants extra fees. Discover has already agreed to pay $1.2 billion to settle lawsuits about these overcharges. Capital One promised the Federal Reserve it would fix these issues and make things right with affected businesses.
Discover Financial has a history with banking giants, having split from Morgan Stanley back in 2007. Capital One first announced its all-stock offer in 2024. The deal faced tough scrutiny under previous leadership at the Justice Department. The Office of the Comptroller of the Currency also approved the acquisition but added some conditions. They want clear plans to address problems at Discover Bank and help anyone who was harmed.
