The proposed acquisition of Discover Financial Services by a large, Virginia-based banking firm will be considered during a public hearing in about two months, the banks’ federal regulators said late Tuesday.
The public comment period on the proposed acquisition was also extended by the agencies to late July.
The Federal Reserve Board and the Office of the Comptroller of the Currency (OCC) said the hearing on the proposed purchase by Capital One Financial Corp. of McLean, Va., of Discover – largely a credit card company – is scheduled for July 19, starting at 9 a.m. ET. It will be a virtual hearing via the Internet, the agencies indicated.
Discover Financial is based in Riverwoods, Ill. The proposed acquisition also includes Discover Bank of Greenwood, Del.
According to the regulators, the hearing aims to “collect information from a wide range of stakeholders as the agencies evaluate the applications” for the purchase. By law, the agencies noted, they are required to gauge:
- the convenience and needs of the communities to be served by the combined organization;
- each insured depository institution’s performance under the Community Reinvestment Act (CRA);
- competition in the relevant markets;
- the effects of the proposal on the stability of the U.S. banking or financial system;
- the financial and managerial resources and future prospects of the companies and banks involved in the proposal; and
- the effectiveness of the companies and banks in combatting money laundering activities.
The regulators also announced the public comment period would be extended – for a second time – to July 24. Last month, the agencies extended the comment period to May 31, from the original date of April 26.