One of the largest credit card companies in the country recently made headlines after a major purchase of an online banking unit.
In a $9 billion acquisition, Capital One Financial bought a portion of ING Groep NV’s business that, if approved by regulators, would create the seventh largest bank in the United States. During a recent hearing in front of the Federal Reserve in Chicago, Capital One’s general council John Finneran said that the move would not harm the financial sector.
“This product diversification, combined with our conservative and industry-leading underwriting capabilities, helped make us one of only two credit card businesses not to lose money in any quarter during the Great Recession,” he said, according to Reuters.
However, many against the deal said that the move put too many assets into the hands of one company. James Carr, the chief business officer at the National Community Reinvestment Coalition said that the deal would result in Capital One having 32 percent of all credit card securities.
Capital One made other news when it revealed that that net chargeoffs, money it has been unable to collect, rose to 4.1 percent in August, higher than the 3.77 percent of accounts a month prior.Back To Blog