One of the largest bank mergers in U.S. history may be happening in Fairfax County’s backyard.
Earlier this month, the Federal Reserve and the Office of the Comptroller of the Currency — the federal agency that regulates national banks — announced plans to hold a virtual public meeting on July 19 at 9 a.m. on Capital One Financial Corporation’s proposal to acquire Discover Bank.
Capital One, headquartered in Tysons, would purchase the Riverwoods, Illinois-based bank for $35.3 billion. If approved, the merger would be the fifth-largest bank deal ever in U.S. history.
The purpose of the public meeting is to gather input from a variety of people and groups, as the agencies review Capital One’s proposal, which has alarmed some members of Congress and consumer advocates who say the banking industry is already too consolidated.
By law, the Federal Reserve and comptroller must consider several important factors, such as how the merger might impact competition between banks, the stability of the country’s banking system, the financial health of both banks and whether it will meet the needs of the communities it serves.
Capital One announced that it had entered an agreement to acquire Discover in February, telling investors that the move would enable it to “compete with the largest payments companies and deliver enhanced value” to over 100 million customers.
“Through this combination, we’re creating a company that is exceptionally well-positioned to create significant value for consumers, small businesses, merchants, and shareholders as technology continues to transform the payments and banking marketplace,” Capital One founder, chairman and CEO Richard Fairbank said in a statement at the time.
Capital One said it expects to close the transaction in late 2024 or early 2025, pending regulatory and shareholder approval.
