New York probing legality of Capital One-Discover merger

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New York probing legality of Capital One-Discover merger

NEW YORK - New York Attorney General Letitia James is investigating whether Capital One's proposed $35.3 billion takeover of Discover Financial Services (NYSE:

She also said the impact of a merger would be"particularly felt by the often vulnerable New Yorkers with subprime credit scores." A merger would also help Capital One, which issues Visa- and Mastercard-branded cards, expand its payment operations. Discover agreed to a full waiver but Capital One did not, claiming it would give New York unlawful"visitorial power" over national banks, leading to the subpoena, James said.

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