02:11 PM EDT, 05/02/2025 (MT Newswires) -- (Updates with statement from a Capital One spokesperson in the fifth paragraph.)

Two Democratic lawmakers urged the Federal Reserve to reconsider its approval of Capital One Financial's ( COF ) proposed acquisition of Discover Financial Services ( DFS ) , Bloomberg reported Friday, citing a letter sent to the Fed this week by Senator Elizabeth Warren and Representative Maxine Waters.

Warren and Waters, the top Democrats on congressional banking committees, said the Fed's decision to approve the deal would cause "serious harm" to consumers and the banking sector, Bloomberg reported.

The lawmakers said that in the decision, it seemed that the Fed "had predetermined it was going to approve the transaction and either ignored relevant facts or explained them away with baseless assertions copied and pasted from Capital One's application," Bloomberg reported.

"We have received the letter and plan to respond," a Fed spokesperson said in a statement emailed to MT Newswires.

"Following an exhaustive, fact-based 14-month examination where legal and regulatory experts examined the deal's competitive impact, financial stability considerations, community needs, and all other relevant factors, the Federal Reserve and the OCC determined that the transaction meets all approval requirements under the banking statutes, and the Department of Justice concluded that the deal did not warrant an adverse comment," a Capital One spokesperson said in a statement emailed to MT Newswires. "Capital One looks forward to closing this transaction as planned on May 18."

Last month, the companies said all the needed regulatory approvals to complete the deal had been received, adding that the transaction is set to close May 18.

Discover, and Warren didn't immediately respond to requests for comment from MT Newswires. Waters couldn't be reached for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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