This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Fed Greenlights Capital One/ING Deal (Update 1)

Updated with comment on deal timing, from Capital One.

NEW YORK ( TheStreet) - The Federal Reserve late Tuesday finally approved Capital One's (COF - Get Report) deal to purchase ING Direct (USA) from ING Groep (ING - Get Report).

Capital One's shares were up over 2% in aftermarket trading, rising to $48.95.

After seven months and three public hearings to address concerns over the effect of the merger on consumers and the creation the ninth-largest U.S. bank holding company (by total assets), with combined total assets of roughly $298 billion, the Board of Governors of the Federal Reserve on gave the okay to Capital One's purchase of ING Direct for $6.2 billion in cash and 55.9 million Capital One shares, valued at $2.8 billion.

A Capital One spokesperson said the deal would "close within the next few days as soon as the details associated with the transaction are finalized," adding that "with the Fed's approval, Capital One has the opportunity to build upon the strong foundation of ING Direct for the benefit of our customers, associates, shareholders and local communities."

The Fed said that, in evaluating the deal, it had determined that "Capital One's regulatory capital ratios are well above the minimums required of well-capitalized bank holding companies and would remain so on consummation of the proposal," and that the combined companies subsidiaries would also be considered well-capitalized.

The Fed also said that "this transaction would not materially increase the debt service requirements of the combined company," and that "asset quality and earnings prospects also are consistent with approval."

The regulator added that in approving the ING deal, it had also taken account Capital One's subsequent agreement to purchase HSBC's (HBC) U.S. credit card portfolio, including Capital One's plan to issue common shares to partially fund that $2.6 billion purchase.

The Federal Reserve also said "Capital One and its subsidiary depository institutions are considered to be well managed," with a "demonstrated record of successfully integrating large organizations into its operations and risk-management systems following acquisitions, including its integrations of Hibernia Corporation in 2005, North Fork Bancorporation in 2006, and Chevy Chase Bank in 2009."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HBC $0.00 0.00%
COF $71.97 -2.19%
ING $11.95 -3.40%
AAPL $95.18 1.64%
FB $117.43 -0.96%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs