bank mergers Archives - Americans for Financial Reform

In The News: Capital One’s Discover deal faces opposition from community groups (S&P Global)

More opposition came from Patrick Woodall, managing director for policy at Americans for Financial Reform, a nonprofit coalition consisting of more than 200 consumer, civil rights, labor, business and investor organizations. “It would be irresponsible for the regulators to approve this merger after Capital One has repeatedly broken its promises made to secure previous mergers,” Woodall said. “It shut down two-thirds of its branches after promising to maintain its geographic footprint. It stopped making home purchase and home improvement mortgages after promising to maintain service levels.”

News Release: Hearing Highlights Arguments Against Capital One Takeover of Discover

Since Capital One announced plans to take over Discover, reasons to oppose the creation of this new megabank have only grown. As federal regulators convene a hearing today on this risky merger, they must face the key arguments, which public interest groups will make, against it: the merger would reduce competition in the already concentrated credit card industry, it poses risks to the stability of the financial system, it would raise network fees for merchants, and it does not deliver for communities.

In The News: How Should Federal Regulators Respond to the Capital One-Discover Deal (American Banker)

Alexa Philo and Patrick Woodall of Americans for Financial Reform: “Picture a new megabank with all the advantages and dangers of a too-big-to-fail institution. Now imagine it had the market power to bully merchants through its ownership of a payment network for debit and credit cards. Finally, throw in a track record of gouging its own customers. That’s exactly what we will have if Capital One succeeds in taking over Discover Financial Services.”

Analysis: Antitrust and Banking Agencies Must Block Capital One-Discover Merger

The $35 billion takeover bid would vault Capital One into 6th place among the biggest U.S. banks and create the largest U.S. credit card lender, ahead of current leader JPMorgan Chase. This new company could raise prices for cardholders, especially lower-income consumers and Black and Latine households and give Capital One the power to jack up debit card fees on merchants. In short, it would reinforce the megabank monopoly power that is already a serious problem in the American economy. The Biden administration must stand up for consumers, communities, and small businesses and block the Capital One-Discover merger.

News Release: Bank Regulators Need to Swiftly Act to Strengthen Bank Merger Guidelines

Today, 29 groups called on federal bank regulators to finally draft a plan to strengthen the merger guidelines to mitigate the adverse effects of bank consolidation, which include increased evictions, higher rates of debt collection, and decreased access to credit for consumers and businesses.

A pair of hands writing on paper with a pen

Letters to Regulators: Reject TD Bank and First Horizon Bank Proposed Merger

AFREF and CRL led a letter calling for the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to reject a proposed merger between TD Bank and First Horizon Bank.

Letters to Regulators: Comment Letter on DOJ’s Consideration of Whether to Strengthen the 1995 Bank Merger Competitive Review

AFREF sent a letter commenting on the U.S. Department of Justice’s consideration of whether to strengthen the 1995 Bank Merger Competitive Review.

gavel from a courtroom - Photo by Wesley Tingey on Unsplash

News Release: Federal Authorities Should Halt Bank Mergers Until Guidelines Are Strengthened

The federal authorities should halt all bank merger approvals until they strengthen the outdated guidelines that govern whether financial institutions can combine, according to a letter delivered today by 30 public interest organizations.

Letter to Regulators: Letter Calling on Regulators to Halt Bank Mergers

AFREF led a letter to regulators stating that the laissez-faire stance adopted by the Department of Justice and the federal bank regulators and current merger guidelines have hurt small businesses, community banks, and households, especially those in BIPOC communities. The letter urges regulators to temporarily halt consideration of pending bank mergers until the DOJ and banking agencies adopt a plan that strengthens the guidelines to protect consumers.

News Release: Americans for Financial Reform Welcomes the FDIC’s Action on Reviewing Bank Mergers

Americans for Financial Reform welcomes the FDIC’s action on reviewing bank mergers. In the last 15 years, the federal bank regulators have rubber-stamped merger applications. This has led to unprecedented consolidation in the industry which has hurt consumers and small businesses, in the form of bank deserts and decreased lending to small businesses while lining the pockets of the banking executives. We look forward to commenting on ways to strengthen the bank merger guidelines to protect the interest of the communities they are supposed to serve.