Groups Blast Capital One-Discover Deal Despite $265 Billion Plan

Community and financial reform advocates brushed aside Capital One Financial Corp.’s promised $265 billion plan to boost lower-income communities in urging federal banking regulators to reject its proposed merger with Discover Financial Services.

The 138 groups said in a Thursday letter to the Federal Reserve and the Office of the Comptroller Currency—the two federal banking regulators reviewing the proposed tie-up of the two banks—that the deal would harm vulnerable consumers and pose a risk to the financial system.

“[T]his merger would reduce options for financially vulnerable customers and reduce the already limited competition on pricing for non-prime credit cards,” the ...