Capital One and Discover Merger Surpasses Key Milestone

New York (CNN) — A seismic shift in the U.S. credit card landscape may be imminent as Capital One (COF) gains approval from the Federal Reserve and Office of the Comptroller of the Currency to merge with Discover Financial Services (DFS). This all-stock acquisition, first revealed over a year ago, will enhance Capital One's competitive edge against heavyweights like JPMorgan Chase (JPM) and Bank of America (BAC). However, challenges remain, including the obligation to address prior enforcement actions against Discover Bank.