The Federal Reserve Board has announced the approval of Capital One Financial Corporation’s application to merge with Discover Financial Services. This merger, originating from Capital One’s base in McLean, Virginia, will result in the indirect acquisition of Discover Bank, located in Greenwood, Delaware.
The application was reviewed by the Board following several statutory factors like financial resources, managerial competence, community needs, and the proposal’s impact on competition and financial stability.
Additionally, the Board has issued a consent order with Discover, which includes a $100 million fine due to excessive interchange fees charged from 2007 to 2023. Discover has ceased this practice and is refunding the fees to affected customers. This action is coordinated with the Federal Deposit Insurance Corporation. As part of the Board’s approval of the merger, Capital One has agreed to adhere to the Board’s directives concerning Discover, including specific remediation requirements.
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