In a landmark move that reshapes the U.S. banking landscape, federal regulators on Friday gave the green light to Capital One’s $35 Billion Deal to acquire Discover Financial Services. The approval clears the last regulatory hurdle for the all-stock transaction and propels the merger toward a May 18 closing date—an event poised to forge the sixth-largest bank in the United States.
The Office of the Comptroller of the Currency and the Federal Reserve Board delivered their stamp of approval, signaling that Capital One’s audacious February 2024 bid has survived the gauntlet of scrutiny. This regulatory green light follows earlier endorsements by shareholders and a critical state banking authority in Delaware.
Resistance and Rhetoric
Yet, the path to approval was anything but smooth. The deal has weathered a barrage of criticism from consumer advocates and prominent Democrats who warned the merger could ignite a wildfire of consolidation in the already-tight credit card market.
Sen. Elizabeth Warren of Massachusetts and former Sen. Sherrod Brown of Ohio were among those who rang the alarm bells, arguing the merger could reduce competition and squeeze consumers with higher fees and fewer choices.
But Capital One and Discover pushed back—hard. They argued that instead of diminishing competition, the merger would amplify it, positioning the new entity as a formidable counterweight to dominant industry players like Visa and American Express.
