Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Other » Capital One`s Painful Journey to ING Acquisition

Capital One`s Painful Journey to ING Acquisition

By
Add to Favorites:
Capital One`s Painful Journey to ING Acquisition

The $9 billion Capital One purchase of the ING Groep NV’s (ING, INGA.AE) U.S. online-banking unitwas aimed to boost fifth-largest U.S. commercial bank by deposits.

Considering this is the biggest bank merger deal since the financial crisis of 2008, it has caught the eyes of many community groups` concerned about banks becoming too powerful. For quite a long time Capital One has put off the news of the bank coupling due to the publicity surrounding the deal and direct calls from legislators such as Rep. Barney Frank about the consequences of the merger.

Capital One was also looking to purchase HSBC in a separate endeavor, but the sale did not go through due to similar attacks. According to an authoritative banking group called Independent Community Bankers of America, before approving any big bank deals the rules from Dodd-Frank should first be adjusted.

At Capital One`s credit card operations meeting Rev. Jesse Jacksonreleaseda statement declaring that credit cards would be much more pricy for vulnerable acquirers if banks get millions more in deposits.

Jackson, founder and president of civil rights group Rainbow PUSH Coalition stated: “As Capital One vacuums up safe bank deposits, it spits out higher risk credit cards. It is clear that Capital One has no commitment to legitimate community banking.”

Before the deal, Capital One has also been accused for not doingenough in home lending in lower income areas, as well as refusing to issue subprime mortgages. On the other hand, Capital One assures the public that its credit card lending is absolutely safe and that it doesn`t see subprime mortgages as financially sound banking.

Along with that, Capital One also pledged a promise of massive donations. The bank is now supposed to invest $180 billion over the next ten years in to low and moderate-income communities.

By making this move, the bank gained the approval of the House Financial Services Committee Chairman Spencer Bachus, who hurried Fed Chairman Ben Bernanke to approve the deal between Capital One and ING.

Credit-Land.comeditor-in-chiefMichael Germanovsky supported the public expectation for an approval, assuming the deal will help Capital One make more consumer loans in its credit card operations. In an interview, Germanovsky said: “This is the first time that the Federal Reserve has used the new legislation delegated by the Dodd-Frank financial reforms for examining banking deals. It was believed that the rules set forth by the Dodd-Frank amendment were aimed at making megabanks extinct.” – said Germanovsky. – “None the less, this approval may create a good opportunity for banks looking to expand in the coming years.”

Add to Favorites:

Related News:

Global Fraud On Hackers To-Do List This Season

By Dar Dowling, Posted: December 2, 2016

With the holiday shopping season upon us, retailers around the world can expect a 12% bump in online fraud when compared with data from the holiday season last year. Continue reading
Chase Pay Launched

By Dar Dowling, Posted: December 1, 2016

Chase Pay, the new digital payment system from Chase, is now open for business. Chase Pay lets people pay for purchases with their credit cards. Continue reading
Blowing The Holiday Budget is a Holiday Tradition

By Dar Dowling, Posted: November 30, 2016

If year after year you find your self overspending at holiday time you are not alone, with eight out of 10 consumers (78%) indicating that they are in the same boat. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
Earn 1% cash back on gas and grocery purchases. Terms apply.
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit