Federal Reserve delays decision on Capital One takeover of ING
- February 8, 2012
The Federal Reserve has delayed a decision on Capital One Financial Corp.’s proposed takeover of ING Direct until Monday.
The Federal Reserve’s Board of Governors was scheduled to meet at 2:30 p.m. Wednesday to vote on the takeover and did not give a reason for the delay.
The meeting has been rescheduled for the same time on Monday.
Capital One is trying to acquire online bank ING Direct USA from Netherlands-based ING Groep NV in a $9 billion cash and stock deal. If approved, ING Direct USA’s $80 billion of deposits would make Capital One the fifth largest bank in the country with about $200 billion in deposits.
Consumer advocates are against the takeover, contending the bank will become too large, and threaten the economy.
Under the Dodd-Frank regulatory overhaul, the Federal Reserve is required to decide whether bank merger would create risks for the economy. The Federal Reserve’s vote will be the first to test the Fed’s decision making.
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