The Federal Reserve Board approved Capital One Financial Corporation’s application to merge with Discover Financial Services and indirectly acquire Discover Bank. The Board assessed the proposal against statutory factors, including the firms’ financial and managerial resources, convenience and needs of communities to be served, and the competitive and financial stability effects. Separately, the Board entered into a consent order with Discover and assessed a USD 100 million fine for overcharging certain interchange fees from 2007 through 2023. Discover has terminated the practices and is repaying the affected fees to customers, and the action was taken in coordination with the Federal Deposit Insurance Corporation. As a condition of approval, Capital One committed to comply with the Board’s action against Discover, including the remediation requirements.

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