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Written by: RJ
Updates on the Capital One + Discover Merger – DOJ now has concerns about the merger impacting competition. At the same time, the Trump family is suing Capital One for multiple account closures dating back to 2021.
The DOJ staff has come to the conclusion that the planned purchase of Discover Financial would harm competition in the subprime sector, according to traders, who cited a Capitol Forum report that circulated on Monday. The finding is part of draft report the agency is preparing to give to the Federal Reserve and the Office of the Comptroller of the Currency about the combination.
As the pending merger’s timing has lagged, four corporate entities associated with Trump and his family sued McLean, Virginia-based Capital One this month in Florida state court over the bank’s June 2021 closure of hundreds of Trump accounts. Trump’s son Eric is the only individual plaintiff.
Capital One’s “unilateral decision came about as a result of political and social motivations and Capital One’s unsubstantiated, ‘woke’ beliefs that it needed to distance itself from President Trump and his conservative political views,” the suit says. “In essence, Capital One ‘de-banked’ Plaintiffs’ Accounts because Capital One believed that the political tide at the moment favored doing so.”
Thoughts
Interesting turn of events.
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