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The new Trump era just got more complicated for Capital One

David Hollerith
David Hollerith · Senior Reporter
Mon, March 10, 2025 at 1:00 AM PDT 5 min read

In This Article:
COF

• 6.35%

COF-PK

• 0.76%

COF-PL

• 1.23%

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The politics of the new Trump era just got a lot more complicated for Capital One (COF).

The huge bank and credit card lender now finds itself in the position of having to defend itself against a new lawsuit from a company owned by President Trump while also seeking a big merger approval from Trump’s antitrust enforcers.

The new legal headache arrived Friday when the Trump Organization sued Capital One for allegedly debanking hundreds of its accounts following the Jan. 6, 2021, attack on the US Capitol in Washington, D.C.

The "unilateral decision came about as a result of political and social motivations and Capital One’s unsubstantiated, ‘woke’ beliefs that it needed to distance itself from President Trump and his conservative political views," according to the lawsuit.

Capital One responded to the lawsuit by telling media outlets the bank "has not and does not close customer accounts for political reasons."

The unfortunate timing for the bank is that this lawsuit arrives just as the company seeks final US regulatory approvals for an acquisition of Discover Financial Services (DFS) that would create the biggest credit card lender in the US and a formidable new rival to American Express (AXP), Visa (V), and Mastercard (MA).

Read more: How Capital One’s acquisition of Discover could affect you

Capital One headquarters in McLean, Virginia on February 20, 2024. US banking giant Capital One announced on February 19, 2024 that it will acquire financial services company Discover in a $35.3 billion all-stock deal combining two of America's major credit card firms. (Photo by Brendan SMIALOWSKI / AFP) (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images)
Capital One headquarters in McLean, Va. (Photo by BRENDAN SMIALOWSKI/AFP via Getty Images) · BRENDAN SMIALOWSKI via Getty Images
Capital One was initially hoping for a closing of the merger in late 2024 or early 2025, but it has been extended to May 19, 2025, to allow more time for regulatory approvals.

The deal offers a test of how the Trump administration will treat a union of two financial giants. It has already signaled that companies are not going to get a free pass when it comes to big mergers.

For example, ​Trump's Justice Department has already filed a lawsuit seeking to block Hewlett Packard Enterprise (HPE) from acquiring rival Juniper Networks (JNPR). And Trump's new Federal Trade Commission Chair, Andrew Ferguson, has also kept in place stricter Biden-era standards for policing US mergers.

Capital One has scored one victory thus far from the new administration. The Consumer Financial Protection Bureau dropped a lawsuit it filed less than a week before Trump’s inauguration. It had claimed in the suit that the bank had cheated customers out of $2 billion by advertising a high-yield savings account that, in fact, paid very little interest.

'We will not stand by while big banks misuse their power'
Capital One may not be the only big bank to face new legal and political challenges during the Trump era.

In a post on the X social media platform Friday, the president's son, Eric Trump, warned of more pressure to come.

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Merger has already started and discover employees with be shaved off live unwanted public hair