During the second quarter, Capital One continued to plan for its acquisition of Discover Financial Services as it awaits approval from the Federal Reserve.  

“Our applications for regulatory approval are in process and we’re fully mobilized to plan and deliver a successful integration,” Capital One Chief Executive Richard Fairbank said during the bank’s July 23 earnings call. 

Discover, too, is waiting on a Fed decision. 

“Capital One continues to lead the integration planning process,” Interim CEO Michael Shepherd said during Discover’s Q2 earnings call on July 18.  

Capital One reported $31 million in Discover integration expenses, according to its Q2 earnings release. 

Fairbank said the acquisition would bring: 

• A unique consumer and global payments platform; 

• Modern technology; 

• Powerful brands; and 

• A franchise of more than 100 million customers. 

BIGGER PICTURE: Others aren’t so excited about the deal.  

The Fed hosted a public meeting on June 19 that allowed critics, supporters and both entities to discuss the proposed acquisition.  

“This merger is a terrible, horrible, no good, very bad idea,” Jesse Van Tol, president and CEO of the National Community Reinvestment Coalition, said during the meeting. 

Some noted that the merger would decrease competition. Bartlett Naylor, a financial analyst at Public Citizen, said it would create an institution that is “too big to fail.”  

FORWARD LOOK: With Fed approval, Capital One expects the acquisition of Discover could be completed by early 2025, Fairbank said during the earnings call. 

MARKET REACTION: Capital One shares were trading up 0.59% at $146.41 at market close on Wednesday. Capital One has a market capitalization of $55.92 billion. 

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