Discover Financial Services has informed investors that it may face up to $200 million in potential regulatory penalties due to the misclassification of certain credit card accounts. This issue has also resulted in litigation and increased scrutiny for the company. Meanwhile, Capital One is seeking to acquire Discover for $35 billion, a deal that may require swift action from the incoming administration regarding bank merger policies, especially if the approval process extends into the next year. Virginia lawmakers have expressed support for Capital One in this high-profile merger, highlighting the importance of regulatory clarity. However, analysts warn that the merger could lead to increased market concentration, potentially resulting in higher credit card interest rates and fees for consumers, who are already facing financial pressures, as evidenced by banks moving $233 billion in interest in 2023 alone.