Fed Requests More Info from Capital One (COF) in Proposed ING Direct Acquisition (ING)
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Capital One (NYSE: COF) is having a roller coaster Monday, shares trading in positive and negative territory throughout the session.
One reason might be the U.S. Federal Reserve asking Capital One for more info in relation to its proposed acquisition of ING Groep's (NYSE: ING) online bank, ING Direct.
Ahead of a hearing scheduled for next week, set for September 20th, the Fed is looking for more detail surrounding the two banks' business overlap and market share in overlapping areas, Reuters notes today. Other areas the Fed is seeking information include securities lending, commercial paper, credit card lending, and mortgage servicing.
Some consumer and low-income housing groups have pushed back on the deal, asking that the Fed scrutinize the proposal further to see whether or not it would break recent regulation under Dodd-Frank, which calls for increased regulatory oversight to prevent banking institutions from becoming large enough that a failure would threaten the stability of financial markets.
Refuting the allegations, Capital One has said that even with the acquisition, Bank of America (NYSE: BAC), J.P. Morgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), and Citigroup (NYSE: C) will still all be larger. With the acquisition, Capital One would become the seventh largest U.S. bank, with $300 billion in assets, Reuters notes, with information from SNL Financial.
Capital One is 0.8 percent lower Monday afternoon.
One reason might be the U.S. Federal Reserve asking Capital One for more info in relation to its proposed acquisition of ING Groep's (NYSE: ING) online bank, ING Direct.
Ahead of a hearing scheduled for next week, set for September 20th, the Fed is looking for more detail surrounding the two banks' business overlap and market share in overlapping areas, Reuters notes today. Other areas the Fed is seeking information include securities lending, commercial paper, credit card lending, and mortgage servicing.
Some consumer and low-income housing groups have pushed back on the deal, asking that the Fed scrutinize the proposal further to see whether or not it would break recent regulation under Dodd-Frank, which calls for increased regulatory oversight to prevent banking institutions from becoming large enough that a failure would threaten the stability of financial markets.
Refuting the allegations, Capital One has said that even with the acquisition, Bank of America (NYSE: BAC), J.P. Morgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), and Citigroup (NYSE: C) will still all be larger. With the acquisition, Capital One would become the seventh largest U.S. bank, with $300 billion in assets, Reuters notes, with information from SNL Financial.
Capital One is 0.8 percent lower Monday afternoon.
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