Congresswoman Maxine Waters Opposes Capital One-Discover Merger

Congresswoman Maxine Waters (D-Calif.) continues to stand firm in her opposition to the proposed Capital One-Discover merger, citing concerns over consumer impact, financial stability, and community needs.

During a virtual meeting convened by the Federal Reserve and the Office of the Comptroller of the Currency, Waters testified against the merger, emphasizing that it fails to meet the necessary regulatory tests. She highlighted potential consequences such as increased costs for consumers and vertical integration issues that could arise if Capital One controls its own card network.

Waters also expressed worries about the financial stability implications of the merger, pointing out that the resulting $625 billion bank would be significantly larger than banks that failed in the past.

This latest stance from Waters comes after Capital One and Discover announced their planned acquisition, touting the creation of a global payments network with extensive reach. Despite Capital One’s efforts to address community concerns with a $265 billion community benefits plan, Waters remains steadfast in her opposition to the merger.

The congresswoman’s vocal opposition to the merger underscores her commitment to protecting consumers and ensuring that financial institutions operate in a manner that benefits communities. As the debate over the Capital One-Discover merger continues, Waters’ advocacy for regulatory scrutiny and adherence to the law remains a key point of contention in the financial services industry.