The 35.5 billion dollar capital acquisition from Discover Financial is adopted by us

Digest opened free editor

Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.

The United States has agreed to acquire 35.5 billion dollars of Capital One in a deal in a deal that merges two of the largest credit card lenders in America and distinguishes one of the largest banking mergers since the 2008 financial crisis.

On Friday, the Federal Reserve and the Currency Observer Office announced their approval of the integration. OCC said they had “an accurate analysis of the impact of integration on societies, banking industry and the American financial system.”

Approval represents the first major bank integration in more than five years and indicates a renewed openness to monotheism under the Trump administration.

The Illinois -based capital is connected to Virginia DiscoverIn 2024, she agreed, faced an intense audit by American lawmakers and Biden administration, which warned that the most unification of the greatest resulted in worse results than the consumer.

Capital is one The argument said that the deal will enhance Discover’s credit card and improve competition against Visa Networks Visa, MasterCard and American Express.

The United States has an unusually fragmented banking industry, with more than 4000 banks, and has faced regular calls for greater unification.

On Friday, Richard Verbank, a founder and head of capital, called for an “exciting moment” for the two companies. “We understand the decisive importance of a strong and competitive banking system for our customers and economy,” he added.

The Federal Reserve also said that it had entered an order with the discovery and values ​​of a fine of $ 100 million for excessive exchange fees from 2007-2023. OCC said its approval was based on the first capital that provides a plan for corrective actions “to address the root causes of any distinguished enforcement measures against Discover Bank and the treatment of damage.”

Michael Shepherd, the temporary CEO of Discover, said that the merger “will increase the competition in payment networks, provides a wide range of products to our customers, increase our resources for innovation and security, and provide meaningful societal benefits.” Companies expect to close the deal on May 18.