From CNBC: 2025-04-21 14:58:00

Capital One received approval from regulators for the $35 billion acquisition of Discover Financial, signaling a softer regulatory environment under the Trump administration. Analysts predict the deal could lead to further bank consolidation and boost earnings for Capital One. The merger comes amidst concerns about President Trump’s tariffs impacting the market.
Despite high hopes for increased mergers and acquisitions under Trump, uncertainty surrounding tariffs and a potential recession has slowed deal activity. Investment banks like Goldman Sachs rely on M & A advisory services and IPO underwriting for revenue. Market volatility has led to disrupted IPO plans and weaker-than-expected revenue for Goldman’s investment banking division.
Wells Fargo stands to benefit from the lenient regulatory environment, with potential for the Fed to lift the $1.95 trillion asset cap. The bank has been working to clean up past misdeeds and diversify revenue streams. Once the asset cap is lifted, Wells can expand its balance sheet and grow fee-based businesses like investment banking.

Read more: What the Discover merger approval means for Capital One and 2 other financials