Industries Banking/Finance

Federal Reserve approves Capital One takeover deal of ING

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The Federal Reserve has approved Capital One Financial Corp.’s $9 billion takeover of ING Direct USA, which will make Capital One the country’s fifth largest bank by deposits.

The Federal Reserve made the announcement Tuesday after it held a closed door meeting on Monday, which had been postponed from last week. The support for the deal was unanimous.

In a statement, the Federal Reserve said the approval was conditional on Capital One’s implementation of a proper risk-management plan. “The Board expects that Capital One will ensure that its risk-management framework and methodologies, including its compliance functions, are commensurate with its new size and complexity,” the Federal Reserve said in a statement.

The deal would add more than 7 million customers to McLean-based Capital One and $80 billion in deposits.

The European Union required that Netherlands-based ING Groep NV sell its U.S. unit. Capital One’s stock and cash deal was the first test for a provision under the Dodd-Frank regulatory overhaul, which requires the Federal Reseve to decide whether bank merger would create risks for the economy.

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