U.S. bank regulators have extended the public comment period on Capital One's proposed $35 billion acquisition of Discover Financial Services' credit card operations. The Federal Reserve Board and the Office of the Comptroller of the Currency have both extended the comment period until May 31, originally set for April 26 and April 28, respectively.
The extension comes amid criticism of the proposed mega credit card deal. Senate Majority Leader Chuck Schumer, Congresswoman Maxine Waters, and Senator Elizabeth Warren have expressed concerns that the merger could result in inflated costs for consumers and reduce competition in the credit card market. Capital One has argued that the acquisition will create a viable rival to Visa and Mastercard, addressing lawmakers' worries about the dominance of the two payment giants.
The proposed acquisition would create the nation's sixth-largest bank holding company and the largest credit card lender by loan volume. Capital One has stated that the deal will improve stability in the credit card market and create a more formidable payments competitor.
Why this matters: The proposed merger has significant implications for the credit card industry and consumers. Regulators are closely scrutinizing the deal to assess its potential impact on competition, costs, and the overall financial system.
The acquisition still requires approval from banking regulators, who have been examining big-bank mergers more closely in recent months. "The Federal Reserve is responsible for overseeing and regulating the U.S. banking system, including reviewing mergers and acquisitions involving financial institutions," the Federal Reserve stated. "The extension of the public comment period indicates that the Federal Reserve is carefully considering the potential impact of the proposed transaction on the banking industry and consumers."
Key Takeaways
- U.S. regulators extend public comment period on Capital One's $35B Discover deal.
- Lawmakers express concerns about reduced competition and higher costs for consumers.
- Proposed merger would create 6th-largest bank holding company and largest credit card lender.
- Capital One argues deal will improve stability and create stronger payments competitor.
- Regulators closely scrutinizing the deal's potential impact on competition and the financial system.
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US Bank Regulators Extend Comment Period for Capital One's Acquisition of Discover's Credit Card Operations Amid Criticism
U.S. regulators extend public comment period on Capital One's $35B acquisition of Discover's credit card ops amid concerns over consumer costs and competition.
U.S. Regulators Extend Public Comment Period on Capital One's Proposed Acquisition of Discover's Credit Card Business
U.S. bank regulators have extended the public comment period on Capital One's proposed $35 billion acquisition of Discover Financial Services' credit card operations. The Federal Reserve Board and the Office of the Comptroller of the Currency have both extended the comment period until May 31, originally set for April 26 and April 28, respectively.
The extension comes amid criticism of the proposed mega credit card deal. Senate Majority Leader Chuck Schumer, Congresswoman Maxine Waters, and Senator Elizabeth Warren have expressed concerns that the merger could result in inflated costs for consumers and reduce competition in the credit card market. Capital One has argued that the acquisition will create a viable rival to Visa and Mastercard, addressing lawmakers' worries about the dominance of the two payment giants.
The proposed acquisition would create the nation's sixth-largest bank holding company and the largest credit card lender by loan volume. Capital One has stated that the deal will improve stability in the credit card market and create a more formidable payments competitor.
Why this matters: The proposed merger has significant implications for the credit card industry and consumers. Regulators are closely scrutinizing the deal to assess its potential impact on competition, costs, and the overall financial system.
The acquisition still requires approval from banking regulators, who have been examining big-bank mergers more closely in recent months. "The Federal Reserve is responsible for overseeing and regulating the U.S. banking system, including reviewing mergers and acquisitions involving financial institutions," the Federal Reserve stated. "The extension of the public comment period indicates that the Federal Reserve is carefully considering the potential impact of the proposed transaction on the banking industry and consumers."
Key Takeaways