Majority Leader Schumer Floor Remarks On The Need For Capital One And Discover To Provide More Information Regarding Their Unprecedented Merger Proposal

Washington, D.C. –  Senate Majority Leader Chuck Schumer (D-NY) today spoke on the Senate floor on his letter to Capital One and Discover on their proposed merger, an unprecedented multi-billion dollar deal that could risk higher costs for Americans in the long run. Below are Senator Schumer’s remarks, which can also be viewed here:

Nearly two months ago, Capital One and Discover quietly announced plans for an unprecedented multi-billion dollar merger that, in the long run, could risk higher costs for consumers and small businesses alike.

Capital One and Discover are two of the largest credit card issuing institutions in America. If they merge, the new company would likely become the largest credit card issuer in the United States, with over 400 million credit card customers. That could risk higher interest rates, bigger fees, diminished competition. But even so, most Americans today have no idea this merger coming.

So yesterday, I sent a letter to both Capital One and Discover asking them to share with my office more information regarding anti-trust & consumer protections.

I want to know more about market shares in this industry; we’ve already had plenty of consolidation throughout the economy. I want to know about a potential increase in fees. I want to know if workers will be laid off. And I’d like to hear how consumers are being made aware of this deal.

One thing is certain about credit card companies: much of their bread and butter is a myriad of fees, and sometimes – sometimes – eye-popping interest rates. That is why the proposed merger of Capital One and Discover is such a concern.

History is very clear that when big financial institutions get even bigger, the American consumer usually gets the short end of the stick. So, before a credit card merger takes a potential swipe at consumers, every question should be answered.

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