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Pressure for major mergers and acquisitions could cause a major Capital One-Discover deal to collapse.
Mergers and acquisitions (M&A) are an essential part of an investment bank’s infrastructure, but the pressure to make big moves can result in the highest levels of loss for future business ventures.
Capital One and Discover’s massive banking deal is one such merger facing intense pressure from advocacy groups to scrutinize the details.
With a $35.3 billion deal, major bank capital After a tumultuous 2023, Discover will absorb one of the most famous assets in the credit industry. But 30 advocacy groups spoke out, urging the Justice Department to intervene.
letters from advocacy groups; Postmarked by March 21st, read carefully. “Dear Chairman Powell, Acting Treasurer Sue, and Assistant Attorney General Cantor.
We will promptly initiate a full and transparent review of the proposed acquisition of Capital One Financial Corporation with the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Department of Justice. We request that you do so. Discover Financial Services provides ample opportunity for the public to participate and comment on the proposed merger. ”
Capital One maintains trust
While Capital One remains on track and expects the deal to close by the end of 2024, the 30 authors of the letter ask for certain public compliance.
- The Fed and OCC should prohibit reasonable filing and expedited review of proposed mergers.
- of federal reserve And the OCC should extend the public comment period for at least 60 days.
- The Fed and OCC should hold public hearings on the proposed merger.
- The Fed and OCC should disclose their pre-petition discussions with the merging parties.
- The Department of Justice will be required to fully evaluate proposed mergers under the 2023 Merger Guidelines.
- The Department of Justice should make the competitive factors report available to the public.
If the deal goes through, Mr. MacLean, the owner of Capital One, would become bigger than JPMorgan Chase and acquire one of the largest companies. credit card US distributor. According to Capital One, the number of existing customers will be four times as large after he swallowed 305 million additional cardholders. new york times.
Released by Discover February statement Michael Rose, Discover’s new CEO and president, said of the acquisition, “The transaction with Capital One brings together two strong brands with an enhanced ability to accelerate growth and maximize value for our shareholders. “This will enable shareholders to participate in the greater good of the world.” Merged company”
“This agreement highlights the strength of our business and is a testament to the hard work of Discover employees. As part of the Capital One family, we are building a bright future and providing even more opportunities for our loyal customers. I’m looking forward to doing it.”
Whether this move stalls or survives remains to be seen, but Captial One believes it will due to its dedicated approach to the formal application process made to the Office of the Comptroller of the Currency on the same day as the letter from There is. Advocacy groups contacted Federal Reserve Chairman Jerome Powell. Acting Superintendent of the Currency and Antitrust Law Officer at the Department of Justice Assistant Attorney General Canter.
image: pexel.
post Advocacy group calls for scrutiny of Capital One and Discover deal It first appeared deadline.