The pending merger between Capital One and Discover Financial Services received the approval of several regulators on Friday, bringing the link of $ 35 billion more to the completion.
The Federal Reserve and the Currency Controller Office signed the agreement, which was announced for the first time in February 2024.
The Federal Reserve Board said he had concluded a consent order with Discover and estimated a fine of $ 100 million to overload certain exchange fees from 2007 to 2023.
Discover has since ended these practices and reimburses these costs to affected customers, according to the federal reserve. The measures of the Council are taken in coordination with the Federal Deposit Insurance Corp.
He declared that Capital One has realized that he will comply with the action of the Council against Discover of Riverwoods, in Illinois, including the sanitation requirement, as a condition of approval.
The OCC has declared that its approval reflects its “careful analysis of the effect of the merger on communities, the banking sector and the American financial system”.
Capital One, based in McLean, Virginia, said that he was planning to finish the acquisition on May 18 now that he received all the required regulatory approvals. The shareholders of the two companies approved the agreement in February.
The agreement joins two of the largest credit card companies which are not the banks first, such as Jpmorgan Chase and Citigroup, with the notable exception of American Express. It also brings together two companies whose customers are largely similar.
It will also give the payment network to discover a major credit card partner in a way that could make the payment network a major competitor once again.
The American credit cards industry is dominated by the Visa-Mastercard duopoly, Amex being a third distant place and discovering a fourth place even further.
