Top Democratic lawmakers are calling on the Federal Reserve to reconsider its approval of the Capital One-Discover merger.
On Friday, Senator Elizabeth Warren and Representative Maxine Waters sent a letter to the central bank. They argued the approval of the $35.3 billion merger will hurt consumers and small businesses.
The lawmakers believe this deal will concentrate too much power in one institution. They warned that merchants may lose negotiation leverage entirely. According to their letter, Capital One could dictate terms due to its massive customer base.
The Capital One-Discover merger would create the largest credit card issuer in the United States.
Warren and Waters also raised concerns about recent economic and political shifts. They noted several overlooked issues. These include new White House tariffs, credit card delinquency data, and political threats to consumer protection laws.
They warned the Fed’s approval undermines the Consumer Financial Protection Bureau. The CFPB is the only agency with legal authority over consumer financial practices.
Despite earlier competition concerns, the U.S. Department of Justice chose not to block the deal. The merger will likely finalize on May 18.
During a recent earnings call, Capital One CEO Richard Fairbank defended the acquisition. He highlighted the strategic value of Discover’s network and card platform. He described the merger as transformational for the company’s future.
Fairbank also mentioned Capital One’s strengths in technology and branding. He emphasized that the merged company would reach over 100 million customers.
Additionally, he stated that the Capital One-Discover merger will combine strong financial services with a global payments network.
Democratic leaders believe this consolidation poses risks. They want the Federal Reserve to review the deal once more.
Their message is clear: the Capital One-Discover merger demands deeper scrutiny before moving forward.
For more business updates, visit DC Brief.
