Capitol One and Discover Financial Services announced Monday that, as expected, the former is buying the latter for $35 billion. Discover’s shareholders will receive shares of Capitol One valued at almost $140, per the news release cited by the AP. Discover shares were trading at $110.49 when trading closed Friday. As of the third quarter, Virginia-based Capital One was the 12th biggest bank in the US and Illinois-based Discover was the 33rd largest. The merger comes as Americans are increasing their use of credit cards and interest rates are soaring—but increased borrower defaults are also a …