Block Capital One’s Merger With Discover

Capital One recently proposed merging with Discover. If the deal passes government scrutiny, the company would become the largest credit-card issuer in the country, making it yet another too-big-to-fail bank.

This deal is about more than the danger posed by another big bank. Allowing a giant bank to run its own network to process billions of credit-card transactions would create a new Wall Street monster with greater power over American families and small businesses. Bank regulators should say no.

First, a little history: For years, regulators have rubber-stamped anticompetitive deals, letting big banks gobble up competitors at will. Weak regulators permitted the kinds of mergers and thin oversight that led to the financial crash of 2008 and the subsequent taxpayer bailout. President Biden has taken a different approach, tapping the brakes on mergers that drive up costs for consumers, lay off workers and increase risks in our economy.

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