The Federal Reserve Board has approved the merger application of Capital One Financial Corporation with Discover Financial Services. Capital One, based in McLean, Virginia, will indirectly acquire Discover Bank, located in Greenwood, Delaware, through Discover Financial, situated in Riverwoods, Illinois.
The decision followed an evaluation of the statutory factors, focusing on the financial and managerial resources of both companies. It also examined the needs of the communities that the new organization will serve, along with the competitive and financial stability impacts of the merger.
In addition to approving the merger, the Board issued a consent order against Discover. This includes a $100 million fine for overcharging interchange fees between 2007 and 2023, practices which Discover has ceased. The company is currently repaying affected customers. The Federal Reserve Board coordinated its actions with the Federal Deposit Insurance Corporation on this matter. Capital One has agreed to comply with all conditions imposed by the Board regarding Discover, including meeting all remediation requirements.
