Two Democratic lawmakers urged the Federal Reserve to reconsider its approval of Capital One Financial's (COF) proposed acquisition of Discover Financial Services (DFS), Bloomberg reported Friday, citing a letter sent to the Fed this week by Senator Elizabeth Warren and Representative Maxine Waters.
Warren and Waters, the top Democrats on congressional banking committees, said the Fed's decision to approve the deal would cause "serious harm" to consumers and the banking sector, Bloomberg reported.
The lawmakers said that in the decision, it seemed that the Fed "had predetermined it was going to approve the transaction and either ignored relevant facts or explained them away with baseless assertions copied and pasted from Capital One's application," Bloomberg reported.
"We have received the letter and plan to respond," a Fed spokesperson said in a statement emailed to MT Newswires.
Last month, the companies said all the needed regulatory approval to complete the deal had been received, adding that the transaction is set to close May 18.
Capital One, Discover, and Warren didn't immediately respond to requests for comment from MT Newswires. Waters couldn't be reached for comment.
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