Capital One Announces $265 Billion Community Plan

Capital One Announces $265 Billion Benefit Plan

Capital One said on Tuesday (July 16) that combination bank with Discover financial services would provide more benefits to underserved communities than these organizations could offer individually.

The bank reported this in press release announcing a $265 billion welfare plan that that developed in cooperation with four social groups.

“We have a long history of developing innovative ways to serve these key audiences and we are committed to ensuring that, through this community benefit plan, our acquisition of Discover continues our history of positive impact.” Richard Fairbankfounder, CEO and chairman of Capital One, said in a release.

The announcement of the plan comes as the bank works to secure regulatory approval for its planned $35 billion acquisition of Discover, Reuters reports. reported Wednesday.

The planned takeover has its critics, as some groups fear it will cut services and increase costs for Americans.According to the report.

Capital One’s community benefits plan could help mitigate that criticism and make the deal look more favorable to regulators who are under political pressure to take a firmer approach to the merger.according to the report.

In its press release, Capital One said the plan is twice the size of any previous one. such liability incurred in connection with the takeover of a bank.

This The plan includes components to expand economic opportunity for underserved consumers, increase access to products and services for unbanked or underbanked consumers, enable greater access to safe and affordable housing, expand access to credit for small business owners, and support the development of schools and civic centers. and health care facilities, in accordance with the announcement.

“This plan delivers high-impact, scalable solutions for low- and moderate-income communities, and its commitments and ambitions reflect the robust, honest dialogue that drove its development.” Andres Navarreteexecutive vice president and head of external affairs at Capital One, said in a release.

Capital One and Discover announced planned acquisition February 19, saying it would create a global payments platform with 70 million payment acceptance points in more than 200 countries and territories.

Members of both political parties criticized the agreement Shortly after the decision was announced, Rep. Maxine Waters (D-Calif.) and Sen. Josh Hawley (R-Mo.) called for it to be blocked.