© Reuters. FILE PHOTO: Congresswoman Maxine Waters addresses the viewers on the ‘Ain’t I a Lady?’ Sojourner Reality lunch, in the course of the three-day Ladies’s Conference at Cobo Heart in Detroit, Michigan, U.S., October 28, 2017. REUTERS/Rebecca Prepare dinner/File Picture
(Reuters) -Democrat Congresswoman Maxine Waters (NYSE:) mentioned on Wednesday she was “deeply opposed” to Capital One Monetary (NYSE:)’s $35.3 billion deliberate acquisition of Uncover Monetary and referred to as on banking regulators to dam the deal.
“This merger represents yet another struggle to rein in the economic power of the megabanks, and ensure that our financial system is designed to serve consumers, small businesses and communities across America, not Wall Street,” Waters mentioned.
Capital One’s probabilities of getting the deal previous regulators hinge on the financial institution displaying it may possibly disrupt the close-knit U.S. bank card business, 5 specialists in company legislation interviewed by Reuters mentioned.
Combining Capital One and Uncover, the highest 4 and 5 gamers within the U.S. bank card market by loans, would create the largest issuer with round $250 billion in card balances and a market share of twenty-two%, in accordance with TD Cowen analysts.
“A merger of Capital One and Discover would result in a $625 billion bank, which is larger than the combined size of the three banks that failed last year, Silicon Valley Bank, Signature Bank (OTC:), and First Republic,” Waters mentioned.
“The failure of those so-called mid-sized banks required our government to use its emergency tools to stabilize the banking system to prevent contagion.”
Individually on Wednesday, Axios reported that Senator Josh Hawley was additionally calling for the deal to be blocked.