The
decision
comes
roughly
two
months
after
Capital
One
finalized
its
all-stock,
$35.3
billion
acquisition
of
Discover,
originally
announced
in
February
2024.

Home
Equity
Lending
News
first
reported
on
the
topic.

Under
the
terms
of
the
deal,
Capital
One
shareholders
now
own
60%
of
the
combined
company,
with
the
remaining
40%
held
by
Discover
shareholders.
The
transaction
also
included
the
indirect
acquisition
of
Discover
Bank.

A
Capital
One
spokesperson
said
the
company
“conducted
an
extensive
strategic
business
review
of
Discover’s

home
equity
and

refinance
loan
business
to
better
understand
its
position
and
potential
as
part
of
Capital
One’s
business
portfolio.” 

“In
late
June,
we
announced
the
difficult
decision
to
exit
this
business.
We
are
focused
on
supporting
our
customers
and
associates
through
this
transition,”
the
spokesperson
added. 

As
part
of
the
acquisition,
Capital
One
committed
to
investing
$265
billion
over
five
years
through
a
community
benefits
plan,
which
includes
expanding
access
to
safe
and
affordable
housing.

In
clearing
regulatory
hurdles
tied
to
the
deal,
Capital
One
agreed
to
pay
a
$100
million
penalty
to
settle
charges
that
Discover
had
overcharged
certain
interchange
fees
between
2007
and
2023,
reimbursing
affected
customers.

Separately,
in
February,
the

Consumer
Financial
Protection
Bureau 
(CFPB)

dropped
a
legal
action
against
Capital
One.
The
agency
had
previously

accused 
the
bank
of
depriving
consumers
of
more
than
$2
billion
in
interest
on
their
savings
accounts.