Capital One, Discover Deal Faces Growing Pushback From Democrats

The $35 billion tie-up between Capital One Financial Corp. and Discover Financial Services would harm consumers by increasing concentration in the financial industry and should be blocked, 13 congressional Democrats argued in a letter.

The lawmakers’ plea to federal bank regulators, led by Sen. Elizabeth Warren (D-Mass.), marks an escalation in opposition from Congress as the companies attempt to persuade federal regulators to greenlight the merger.

The deal would create the largest US credit card company by loan volume and lead to a vertical integration of a major card issuer and the fourth-largest card network. The lawmakers’ request ...