Capital One’s Deal for ING Direct Still in Limbo
By BEN PROTESS
The Federal Reserve has again declined to announce a decision on the fate of Capital One’s $9 billion takeover of ING Direct USA, the second delay in the last week.
“The board considered the application at its meeting this afternoon and expects to issue a decision soon,” a Fed spokeswoman said in a statement. “No further announcement is expected today.”
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The Fed on Monday was expected to vote on the deal, which has drawn criticism from community banks and consumer advocates for its potential impact on the economy. The mergers, critics say, would turn Capital One into the fifth or sixth largest bank by deposits. Currently, it does not rank in the top 10.
Last week, the Fed also postponed a closed-door meeting about the deal without explaining the cause of the delay. Capital One said that Fed officials attributed the switch to scheduling problems.
But it is unclear whether the repeated delays may also indicate dissent among the Fed’s governors. Capital One needs support from a majority of the five governors to obtain approval.
In June, Capital One agreed to pay $6.2 billion in cash for the Dutch bank ING’s online banking business in the United States. Capital One would also issue $2.8 billion worth of new shares to ING, giving it a 9.9 percent stake.