The merger, announced last year, would mark the establishment of the largest U.S. credit card company by balances if it goes through successfully.

Regulators, however, handed Discover several consent orders. Most notably, the FDIC ordered the company to distribute $1.225 billion in restitution to customers overcharged between 2007 and 2023.

U.S. banking regulators said on Friday they approved Capital One's $35.3 billion purchase of Discover Financial Services , paving the way for the combined firms to become the nation's eighth-largest bank.