Election Throws Potential Wrench Into Capital One-Discover Deal

Capital One Financial Corp.‘s proposed $35 billion acquisition of Discover Financial Services will require a new administration to quickly show its cards on bank merger policy if the approval drags into next year.

The deal, announced in February, awaits approval from the Federal Reserve and the Office of the Comptroller of the Currency, and faces the threat of antitrust action from the Justice Department.

Industry observers expect the agencies to approve the deal with further concessions from the two banks, despite the Biden administration’s tougher antitrust stance than previous administrations. But the looming presidential election adds uncertainty should ...