Capital One (Memory) Buy $ 35 billion of discovery (Dfs) Just got the green light from key regulators, preparing the way for forming the largest credit card company in the US.
Two regulators responsible for the approval of the deal – the Federal Fund's Board of Governors and the Office of the Currency Manager (WNO) – on Friday – on Friday that they had approved the transaction, based on the companies that meet a few final conditions.
“This approval will be given based on a thorough review of all available information,” said a letter from the WNO's Big Bank Licensing Office.
The Fed and OCC said in separate statements that they had concluded that the merger was consistent with their statutory merger approval rules.
In particular, the regulators found that the combination of both companies would not significantly reduce competition, jeopardize the convenience and needs of the communities that one of the banks serves, reduce the effectiveness of the ability of either organization to combat money laundering, or bring a greater risk to the banking and a wider US financial system. The WNO said in its statement that it had concluded that the merger was consistent with rules set out in the Bank Union Act.
The merger's approval also came with a consent order with a discover and a $ 100 million fine for raising too many exchange fees from 2007 through 2023. Since then Discover has since terminated these practices and adopts those fees to affected customers, the Fed said.
The WNO said its approval was subject to one capital providing a plan for it to “address the underlying causes of any enforcement action due against the discovery of a bank and plans for recovering harm.”
Buying a Discover from Capital One would make the largest credit card issuer in the US by loan volume, more than even Colossus JPMorgan Chase banking (Jpm) according to that measure. Capital One is known for its ubiquitous TV commercials asking, “What's in your wallet?”
The combined bank is expected to have combined assets of around $ 637.8 billion, making it the country's eighth largest bank, according to the Federal Fund.
Capital One would also win a significant credit card payment network of more than 300 million card holders, allowing it to influence more heavier on the fees that traders pay when consumers change their cards at the register.
“The WNO is committed to a regulatory framework that widens access to financial services for consumers, businesses and communities,” said Currency Currency Rodney Hood in a statement with the release.