CAPITAL ONE'S $35 BILLION DISCOVER DEAL HINGES ON PLAYING CONSUMER CHAMPION

Capital One's prospects of successfully completing its $35.3 billion acquisition of Discover Financial (DFS.N) depend largely on the bank's ability to demonstrate its capacity to disrupt the tightly integrated U.S. credit card industry.

Investors are currently estimating a 50% likelihood of the deal going through, partly due to concerns that the proposed acquisition might draw scrutiny from U.S. regulators and lawmakers, who are wary of high credit card interest rates and fees. To improve the prospects of approval, Capital One will need to demonstrate its commitment to sharing a portion of the anticipated $2.7 billion in pre-tax cost savings from the deal with consumers.

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