The Office of the Comptroller of the Currency (OCC) announced that it has “conditionally” approved the merger of Discover Bank, Greenwood, Delaware, into Capital One, National Association, McLean, Virginia.
The OCC conducted a fulsome review of the application “submitted March 21, 2024, to ensure all statutory and regulatory requirements have been met.”
The approval also follows “consideration of numerous public comments submitted in writing and expressed during a public meeting held with the Board of Governors of the Federal Reserve System conducted on July 19, 2024.”
Today’s announcement reflects the OCC’s careful “analysis of the effect of the merger on communities, the banking industry, and the U.S. financial system.”
The OCC’s approval of Capital One’s application is conditioned upon the approved plans detailing “effective and sustainable corrective actions and timelines to address the root causes of any outstanding enforcement actions against Discover Bank and remediation of harm.”
Acting Comptroller of the Currency Rodney E. Hood said:
“The OCC is committed to a regulatory framework that expands access to financial services for consumers, businesses and communities.”
Upon consummation of this transaction, Capital One, National Association is expected to have “$660 billion in total assets.”
As covered earlier this month, the Department of Justice (DoJ) has given the green light to a $35 billion merger between Capital One Finance Group and Discover Financial Services.
The decision marks a pivotal step forward for the deal, which had still required approval from the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to be finalized (and this now appears to have moved forward).
The clearance offers a glimpse into how antitrust policy may evolve under the current administration.
The DoJ’s antitrust division concluded its review with a confidential memo sent to regulators, stating there was insufficient evidence to block the merger on competitive grounds.
This stance represents a departure from an earlier draft of the memo, prepared in January under the Biden administration.
That version had raised red flags, warning that the merger could stifle competition, particularly for first-time credit card holders, and allow Capital One to sidestep interchange fees on its debit card offerings.
However, the new antitrust chief, Gail Slater, appointed under the current administration, determined that the evidence did not support a challenge.
