Capital One
Financial Corporation (NYSE: COF) has completed its acquisition of Discover
Financial Services, culminating a 15-month process that transforms the company
into the largest credit card issuer by loan volume in the United States.

Capital One Completes
Acquisition of Discover

The
transaction, first
announced on February 19, 2024, received final regulatory clearance last
month from the Federal Reserve and the Office of the Comptroller of the
Currency (OCC), despite initial regulatory uncertainty during the previous
administration.

“This
deal brings together two innovative, mission-driven companies that together are
poised to deliver breakthrough products and experiences to consumers,
businesses, and merchants,” said Richard D. Fairbank, Founder and CEO of
Capital One.

The
combined entity now controls the Discover payments network, positioning it as a
direct competitor to industry giants Visa and Mastercard. The acquisition
represents a significant shift in the payments landscape, giving Capital One
both issuing capabilities and network ownership.

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Regulatory Journey

The deal
faced scrutiny throughout its approval process, with some Congressional
Democrats voicing opposition on grounds that it could harm consumers and
potentially threaten financial stability. However, the regulatory environment
shifted following the recent presidential transition.

As part of
the approval conditions, the OCC required Capital One to outline corrective
actions addressing Discover’s outstanding enforcement issues. These stemmed
from a 2023 disclosure that Discover had been overcharging merchants for
certain credit card transactions since 2007.

Final
approvals came from the Federal Reserve and OCC on April 18, 2025, following
the Delaware State Bank Commissioner’s approval in December 2024. Stockholders
of both companies voted in favor of the transaction on February 18, 2025.

Board Expansion

In
connection with the merger , Capital One has expanded its Board of Directors
from 12 to 15 members, appointing three former Discover board members: Thomas
G. Maheras, Michael Shepherd, and Jennifer L. Wong.

For now,
customer accounts and banking relationships remain unchanged at both
institutions. “Customers will be provided with comprehensive information
in advance of any forthcoming changes. Until then, customers do not need to
take any action,” the company stated.

Community Investment
Initiatives

The
acquisition triggers implementation of Capital One’s $265 billion Community
Benefits Plan, developed in partnership with community organizations. The plan
aims to advance lending, investment, and services to strengthen economic
opportunity across America.

As of March
31, 2025, the combined financial holding company reported $367.5 billion in
deposits and $493.6 billion in total assets. Capital One trades on the New York
Stock Exchange under the symbol “COF” and is included in the S&P
100 index.

Fairbank
acknowledged the leadership of Discover’s Board and interim CEO Michael
Shepherd as instrumental in reaching this milestone, adding, “Through the
efforts of thousands of associates across Capital One and Discover, we are
well-positioned to continue our quest to change banking for good for millions
of customers.”