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Warren Asks the Fed to Reconsider Approval of Capital One-Discover Merger
"This decision will inflict serious harm on consumers and merchants, especially low-income consumers and small businesses," wrote Democratic Sen. Elizabeth Warren and Rep. Maxine Waters.
May 05, 2025
Democratic Sen. Elizabeth Warren of Massachusetts and Democratic Rep. Maxine Waters of California are urging the Federal Reserve to reconsider its approval of an impending merger between Capital One Financial Corporation and Discover Financial Services, a tie-up that critics have warned could harm consumers.
In a letter sent last week, Warren and Waters wrote that the decision to approve the merger by the Federal Reserve "was inconsistent with the legal requirements" under the Bank Holding Company Act. They also argued that it did not include a number of relevant assessments, including how the the merger would impact the "convenience and needs of the community" or the "competitive effects on the credit card market."
"This decision will inflict serious harm on consumers and merchants, especially low-income consumers and small businesses, and threaten the stability of the U.S. financial system," states the letter, which was addressed to Secretary of the Board Ann Misback and dated May 1.
Warren is the ranking member on the U.S. Senate Committee on Banking, Housing, and Urban Affairs and Waters is the ranking member on the U.S. House Committee on Financial Services.
The deal was announced in February 2024 and is valued at $35 billion. A report from the Consumer Financial Protection Bureau (CFPB) released right before the acquisition was announced found that the largest credit card firms charge much higher interest rates than smaller banks and credit unions.
The deal initially received some scrutiny around possible impacts to competition, but in April 2025 overcame a major obstacle when the U.S. Department of Justice (DOJ), now under the Trump administration, decided not to challenge the merger.
The Federal Reserve and the Office of the Comptroller of the Currency gave the deal the green light last month.
In response to the DOJ's decision not to challenge the merger, Morgan Harper, the director of policy and advocacy at the American Economic Liberties Project, wrote that "if the Trump administration green-lights the Capital One-Discover merger, it will be a betrayal of working-class Americans and small businesses." The American Economic Liberties Project is an anti-monopoly research and advocacy group.
"If the deal goes through, Capital One will become the largest credit card lender in the country, the first major issuer in decades to control its own payments network, and entrench its striking dominance in subprime credit card lending," Harper continued.
One noteworthy aspect of the merger, which is expected to be finalized mid-May, is that Capital One is set to acquire Discover's card network. This means the combined firm would be akin to a larger version of American Express, "a stand-alone integrated system that could use its millions of customers to push higher fees onto merchants," according to The American Prospect.
Capitol One currently uses Visa and Mastercard credit card networks, which operate an effective duopoly of global payment processing, but has said it would transition to the Discover card network, according the outlet CNET.
This aspect of the merger is without clear precedent and raises concerns about competition, according to Jesse Van Tol, the chief executive of the National Community Reinvestment Coalition, a group that is opposed to the deal, who spoke to The New York Times in April.
"The market power it gives them, and the opportunity it gives them to set pricing in ways that captures a lot of value for the company at the expense of the consumer, is significant," Van Tol told the Times.
In their letter, Warren and Waters alleged that the Federal Reserve failed to adequately scrutinize the competitive effect of this aspect of the deal.
"The board argued that given 'the significant, larger competitors that would remain,' and that Capital One doesn't currently own a network, there aren't any competitive concerns. The board completely missed the fact that the merger would provide Capital One with significant market power to increase interchange fees charged to merchants and reduce rewards and other benefits for consumers. It didn't grapple with the implications of vertical integration and network effects," the two wrote.
When considering the conveniences and needs of the community, Warren and Waters said in their letter that the Federal Reserve did not perform the prospective analysis required by law, and instead "focused on each bank's past performance under the Community Reinvestment Act (CRA)," even though "the convenience and needs of the community is a distinct legal factor, separate and apart from banks' past performance under the CRA."
The two also said that the Federal Reserve appears to not have taken into consideration relevant findings from the CFPB, the Federal Deposit Insurance Corporation, and the DOJ.
Bloombergreported last week that the Federal Reserve received the letter and plans to response, per a spokesperson.
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Progressives Warn House Anti-Socialism Resolution Backed by 109 Dems Is Step Toward Slashing Safety Net
"This resolution is little about intelligent discourse and everything to do about laying the groundwork to cut Social Security and Medicare," said Rep. Mark Pocan, one of 86 House Democrats who voted against the measure.
Feb 02, 2023
More than 100 U.S. House Democrats—including some of the wealthiest members of Congress—joined with Republican lawmakers on Thursday in passing a resolution "denouncing the horrors of socialism," a largely symbolic gesture that opponents warned is nonetheless a step toward slashing Social Security, Medicare, and other safety net programs.
House Concurrent Resolution 9, which "denounces socialism in all its forms and opposes the implementation of socialist policies in the United States," was introduced by Rep. María Elvira Salazar (R-Fla.), the staunchly anti-communist daughter of Cuban exiles who once interviewed then-Cuban President Fidel Castro for Telemundo.
"I think it's the best resolution that has ever been presented before the United States Congress," Salazar toldInsider at the U.S. Capitol before the vote. "Our youth are being penetrated by this ideology through media and academia."
The measure—which followed the vote to oust Rep. Ilhan Omar (D-Minn.) from the House Foreign Affairs Committee—passed 328-86, with 14 lawmakers voting "present" and six members not voting.
One hundred and nine Democrats—many of them members of the corporate-friendly New Democrat Coalition—joined with every Republican lawmaker in voting to approve the resolution. Prominent Democrats who voted "yes" include: House Minority Leader Hakeem Jeffries (N.Y.), former House Speaker Nancy Pelosi (Calif.), and House Assistant Democratic Leader Jim Clyburn (S.C.), all of whom played prominent roles in defeating Sen. Bernie Sanders' (I-Vt.) presidential campaigns, which were based on popular democratic socialist policies and principles.
\u201cOne of these "New Democrats" is Congresswoman @SuzanDelBene - the new chair of the @DCCC, the House Democrats' PAC.\n\nThis is their plan to win the majority: not to pass popular bills like #MedicareForAll, but to ATTACK progressives and stoke another Red Scare.\n\nEmbarrassing.\u201d— Our Wisconsin Revolution (@Our Wisconsin Revolution) 1675369788
Many of the Democrats voting for the resolution also rank among the wealthiest members of Congress, including Pelosi, whose 2018 net worth was over $114 million, according to OpenSecrets.org; Suzan DelBene (Wash., $79 million net worth); Dean Phillips (Minn., $64 million); Scott Peters (Calif., $60 million); and Ro Khanna (Calif., $45 million). Khanna along with Reps. Adam Schiff and Eric Swalwell of California and Rubén Gallego of Arizona, are either current or prospective candidates for U.S. Senate.
Denouncing the measure on the House floor, Rep. Jim McGovern (D-Mass.)—who voted "no"— said that "the socialism resolution is useless. It does nothing. It does not matter. Are we talking about public schools? Are we talking about roads? Are we talking about Social Security? I mean, give me a break."
\u201cThe GOP has called Social Security, Medicare, the Affordable Care Act, & even free public schools "socialism" to scare ppl. Today, House R's wasted our time by debating a sham resolution in an attempt to justify cuts to programs that millions of Americans have paid into & earned.\u201d— Congressman Maxwell Alejandro Frost (@Congressman Maxwell Alejandro Frost) 1675355277
Rep. Mark Pocan (D-Wis.), Chair Emeritus of the Congressional Progressive Caucus, invoked his experience as a capitalist to lambaste the anti-socialism resolution.
"For 35 years now I've owned a small business, giving me significantly more experience as a capitalist than the vast majority of members on the other side of the aisle. So as a capitalist, let me tell you: This resolution is plain ridiculous. It jointly condemns Pol Pot and Norway," Pocan said during floor debate, referring to the former Cambodian dictator, who was supported by the Republican Reagan administration after leading a genocidal regime that killed at least 1.5 million people.
Pocan continued:
Here's what this is really about: More and more members on the other side of the aisle are calling for cuts to Social Security and Medicare, and many have referred to these programs as "socialism" throughout their existence. The other night in the Rules Committee they showed their cards. Republicans refused an amendment to declare that Social Security and Medicare is not socialism. This resolution is little about intelligent discourse and everything to do about laying the groundwork to cut Social Security and Medicare.
Rep. Maxine Waters (D-Calif.), another "no" vote, called out the hypocrisy of Republicans who support corporate welfare or are personal beneficiaries of social programs. Waters took aim at House Small Business Committee Chair Roger Williams (R-Texas), who summarized his support for the resolution as: "Socialism bad. Capitalism good. In God we trust."
"Mr. Williams is my friend," said Waters, "but I do wonder whether Mr. Williams views the $1.43 million he received in debt forgiveness [to be] consistent with his views on socialism? I don't get it."
\u201cGOP logic:\n\nPublic Housing= Socialism\nSocial Security and Medicare=Socialism\nInfrastructure=Socialism\n\nRepublicans always have and always will brand programs to help working families as socialism. That's why I'm voting no on this distraction of a resolution.\u201d— Rep. Nydia Velazquez (@Rep. Nydia Velazquez) 1675354158
After Rep. Brad Sherman (D-Calif.), who voted against the measure, noted during floor debate that there have been numerous democratic socialist leaders around the world who've been "allies of America and NATO," Rep. Patrick McHenry (R-N.C.) quipped, "If this resolution would just simply draw out my Democrat colleagues to just say, yes, they are in favor of socialism, maybe this is a worthwhile endeavor."
Rep. Summer Lee (D-Pa.), a former organizer from Pittsburgh's Democratic Socialists of America chapter who voted against the resolution, shrugged off Republicans' red-baiting and the New Democrat Coalition's support for the GOP resolution.
"They're going to call you socialists anyways," Lee said.
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Cori Bush, Progressive Lawmakers and Activists Hailed for New CDC Eviction Moratorium
"I think the message here today is clear," said Rep. Alexandria Ocasio-Cortez. "It's that everyday people can make a change. We can always demand better."
Aug 03, 2021
Pressure from progressive lawmakers and grassroots activists to extend the expired federal eviction moratorium paid off Tuesday when the Biden administration took action to shield most--but not all--U.S. renters at risk of losing their homes.
"We saw what it's like when one of the lowest-income Americans ever elected to national office challenged a Congress that is half made up of millionaires."
--Alexandra Rojas, Justice Democrats
The U.S. Centers for Disease Control and Prevention (CDC) said the new moratorium "is intended to target specific areas of the country where cases are rapidly increasing, which likely would be exacerbated by mass evictions."
Washington Post reporter Jeff Stein tweeted Tuesday afternoon that Senate Majority Leader Chuck Schumer (D-N.Y.) confirmed that the new CDC moratorium "will cover 90% of the country" and "last for 60 days."
"Schumer says, 'I particularly applaud Cori Bush,' who he says gave 'voice to the millions' at risk of eviction," Stein added.
Reacting to news of the new CDC moratorium, Bush (D-Mo.) tweeted, "Today, our movement moved mountains."
Alexandra Rojas, executive director of Justice Democrats, said in a statement that Bush "demonstrated exactly the kind of leadership on behalf of working people that we need to see more of in the Democratic Party."
\u201cOn Friday night, I came to the Capitol with my chair. I refused to accept that Congress could leave for vacation while 11 million people faced eviction.\n\nFor 5 days, we\u2019ve been out here, demanding that our government acts to save lives.\n\nToday, our movement moved mountains.\u201d— Cori Bush (@Cori Bush) 1628022466
"We saw what it's like when one of the lowest-income Americans ever elected to national office challenged a Congress that is half made up of millionaires," said Rojas. "With a little conflict and disruption of business as usual, she created a way out of 'no-way.' This isn't the end of the battle for housing rights, but a new beginning. People deserve so much more than just basic protections from evictions during a pandemic."
Sen. Bernie Sanders (I-Vt.) said in a statement that "today's extension of the eviction moratorium is life-changing news for millions of people."
"I want to thank the Biden administration for finding a way to keep people in their homes while states distribute the $47 billion in assistance that Democrats in Congress provided in the American Rescue Plan," Sanders continued. "I'm also very proud of Reps. Cori Bush, Alexandria Ocasio-Cortez [D-N.Y.] and the [Congressional] Progressive Caucus for leading the effort to push the federal government to respond directly to the needs of the working class."
\u201cRep. Omar statement on the new CDC eviction moratorium:\u201d— Rep. Ilhan Omar (@Rep. Ilhan Omar) 1628031745
Rep. Pramila Jayapal (D-Wash.) tweeted that "this couldn't have happened without the monthslong advocacy of the Congressional Progressive Caucus." The Caucus chair hailed the "committed, clear-eyed activists like Bush leading the way, galvanizing attention, and calling on D.C. to govern with moral clarity," adding that "it gets results."
After House Democrats on Friday gave up on an eleventh-hour effort to pass a bill from Rep. Maxine Waters (D-Calif.) to extend the moratorium just before the lower chamber adjourned for August recess, the eviction ban lapsed on Saturday, putting millions of U.S. renters at risk of losing their homes amid the worsening Covid-19 pandemic.
Rather than leave Washington, D.C. like many of her congressional colleagues, Bush, along with Reps. Ilhan Omar (D-Minn.) and Ayanna Pressley (D-Mass.), slept outside the U.S. Capitol building Friday night to demand that the House immediately reconvene to extend the moratorium.
The "Squad" members were joined over the weekend by other lawmakers and activists, who demanded that President Joe Biden, House Speaker Nancy Pelosi (D-Calif.), Schumer, and other leaders "stop playing the blame game" and "do whatever it takes" to "end this eviction emergency."
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