Capital One to sell $3.55 billion to Treasury
- October 27, 2008
Credit card and banking company Capital One Financial Corp. will sell $3.55 billion of preferred stock and warrants to the U.S. Treasury, the company said in a regulatory filing on Monday.
The McLean-based company said it would participate in the government’s capital repurchase program, which was part of the government’s $700 billion bailout plan approved earlier this month. The Treasury approved Capital One’s request on Friday, according to the filing with the Securities and Exchange Commission.
The Treasury’s repurchase program required nine of the country’s largest financial institutions to sell a total of $125 billion in preferred stock to the government. The plan included another $125 billion for other banks to voluntarily sell stocks to the government.
Already, 18 regional banks, including Capital One and Atlanta-based SunTrust Banks Inc., have participated in the program. Institutions have until Nov. 14 to apply for the program.
Analysts believe many of the banks plan to use the influx of capital for acquisitions.