JPMorgan Chase ($JPM) had been in discussions for about a year regarding a potential deal with Discover Financial ($DFS) before Capital One ($COF) proposed a $35 billion bid for the credit card company. This move has sparked significant controversy, including criticism from Senator Elizabeth Warren, who has urged regulators to block the merger, arguing it would create another too-big-to-fail bank and potentially lead to higher prices for consumers using credit and debit cards. Warren also expressed concerns that allowing a large bank to run its own network for processing billions of credit-card transactions could create a new Wall Street 'monster,' potentially undermining the existing payment network oligopoly of Visa ($V), Mastercard ($MA), and American Express. She suggested that Capital One might charge merchants up to a 10% swipe fee, a claim that has been met with skepticism.
Regulators must block @CapitalOne's merger with @Discover. If this goes through, it would create another too-big-to-fail bank that could threaten our economy & jack up prices on working people using credit & debit cards. I explain why in my new op-ed. https://t.co/o3VSkvx2AB
10% credit card fees!?! What the hell is Elizabeth Warren smoking..? 🤔 https://t.co/e9GgpvPM1f https://t.co/625Fdpw2vM
Warren defends the Visa/Mastercard/Amex oligopoly on payment networks. Argues that Capital One will start charging 4-6%+ once they add another competitor with sufficient scale. $V $MA Via @WSJ https://t.co/UpNGb5IhTM
From @WSJopinion: The Capital One-Discover deal is about more than the danger posed by another big bank. Allowing a giant bank to run its own network to process billions of credit-card transactions would create a new Wall Street monster, writes @ewarren. https://t.co/xsuJhj8ilx
Senator Warren penned a WSJ opinion this morning suggesting Capital One might charge merchants a 10% swipe fee. This should not have been published. https://t.co/Q90rtODbG2
So much for Ms Warren warming up to COF/DFS. WSJ Article from the Senator "Block Capital One’s Merger With Discover" https://t.co/aA8BUIUwZw
(FT) - JPMorgan Chase spent about a year discussing a possible deal with Discover Financial before Capital One agreed a $35bn bid for the credit card company .. @FT $JPM $DFS $COF https://t.co/7vt5PNUB5V
$DFS (+0.0% pre) Report: $JPM JPMorgan Considered ‘Company-Changing’ Discover Deal $COF https://t.co/oMRw3qiAyW
‘This would’ve been a truly company-changing deal.’ How talks have shown the largest US lender’s appetite for a payments network to support its credit card business https://t.co/NQNbTN9udh https://t.co/weDC7Hy4Hd
Capital One/Discover: Deal to Test OCC's Growth Restrictions on Banks with Multiple Enforcement Actions $COF $DFS h/t @SaraLSirota https://t.co/tKN2yD1MCo