Is Capital One suddenly too big?
By David Gura
The former credit card company has bought several banks and now is buying ING Direct, a large and popular online bank. It will become the nation’s fifth-largest depository bank. ADRIENE HILL: You may know Capital One from their off-beat and often-aired “What’s in your wallet?” ads. You know, with the vikings and barbarians. But Capital One is more than a credit card company. Over the last few years, it’s snatched up three retail banks. Now, it wants to conquer online. But some consumer groups say not so fast — they worry the bank’s grown too big, too fast. From Washington, Marketplace’s David Gura reports. DAVID GURA: Capital One’s offered to buy ING Direct for about $9 billion in cash and stock. For that kind of money, what would it get? KAREN PETROU: Everybody’s waiting, but it hasn’t come out. That’s Karen Petrou, with Federal Financial Analytics. Last week, Congressman Barney Frank asked the Federal Reserve to take more time to decide if the acquisition passes muster. Capital One wouldn’t talk to us, but a bank spokesman said in a statement the deal wouldn’t “result in greater risk to the stability of the U.S. banking system.”
To listen to the show click here: http://marketplace.publicradio.org/display/web/2011/08/22/am-is-capital-one-suddenly-too-big/