[Congressional Record Volume 170, Number 59 (Monday, April 8, 2024)]
[Senate]
[Page S2630]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
CAPITAL ONE AND DISCOVER MERGER
Mr. SCHUMER. Madam President, now on Capital One and Discover, nearly
2 months ago, Capital One and Discover quietly announced plans for an
unprecedented, multibillion-dollar merger that in the long run could
risk higher costs for consumers and small businesses alike.
Capital One and Discover are two of the largest credit card-issuing
institutions in America. If they merge, the new company would likely
become the largest credit card issuer in the United States, with over
400 million customers. That could risk higher interest rates, bigger
fees, and diminished competition.
But even so, most Americans today have no idea that this merger is
coming, so yesterday I sent a letter to both Capital One and Discover
asking them to share with my office more information regarding
antitrust and consumer protections. I want to know more about market
shares in this industry. We have already had plenty of consolidation
throughout the economy. I want to know about a potential increase in
fees. I want to know if workers will be laid off. I would like to hear
how consumers are being made aware of this deal.
One thing is certain about credit card companies: Much of their bread
and butter is a myriad of fees and sometimes--sometimes--eye-popping
interest rates. That is why the proposed merger of Capital One and
Discover is such a concern. History is very clear that when big
financial institutions get even bigger, the American consumer usually
gets the short end of the stick. So before a credit card merger takes a
potential swipe at consumers, every question should be answered.
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