New York probing legality of Capital One-Discover merger
Adds reasons for New York subpoena in paragraph 2, 9-10, details about merger in paragraphs 8-13, byline
By Jonathan Stempel
NEW YORK, Oct 23 (Reuters) -New York Attorney General Letitia James is investigating whether Capital One's COF.N proposed $35.3 billion takeover of Discover Financial Services DFS.N violates the state's antitrust law.
In court filings on Wednesday,James asked a state judge in Manhattan tosubpoena Capital One for documents needed forher probe, citing the bank's alleged lack of cooperation.
Jamessaid a merger could have a significant impact in New York because Capital One and Discover respectively havemore than $9.5 billion and $6.5 billion of credit card loans there.
She alsosaid the impact of a merger would be "particularly felt by the often vulnerable New Yorkers with subprime credit scores."
Neither company immediately responded to requests for comment.
Capital One, based in McLean, Virginia, is one of the largest U.S. banks, with $480 billion of assets as of June 30. It expects to report third-quarter results on Thursday.
Discover, based in Riverwoods, Illinois, reported a $965 million third-quarter profit last week.
Announced in February, the all-stock merger would create the largest U.S. credit card issuer with more than $250 billion of outstanding loans, surpassing JPMorgan Chase JPM.N, and access to more than 305 million cardholders.
James said the merger would extend Capital One's lead as the largest U.S. subprime card issuer, and give the combined company a more than 30% market share.
A merger would also help Capital One, which issues Visa- and Mastercard-branded cards, expand its payment operations.
The merger requires approvals by shareholders, various bank regulators, the Department of Justice and Federal Trade Commission. Capital One and Discover have said they hope to close the deal by early 2025.
James said her office asked Capital One and Discover in May to waive confidentiality so it could review documents they submitted to the Justice Department's antitrust division.
Discover agreed to a full waiver but Capital One did not, claiming it would give New York unlawful "visitorial power" over national banks, leading to the subpoena, James said.
Some customers sued Capital One and Discover in July over the merger, saying it would reducecompetition and boostconsumer costs.
Reporting by Jonathan Stempel in New York; Editing by Richard Chang
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
