ING Buy Vaults Capital One to Fifth Largest Depository in U.S.
The Federal Reserve issued an order approving Capital One’s acquisition of ING Groep NV’s U.S. online bank, which indirectly includes ShareBuilder Advisors and ING Direct Investing, both of Seattle, WA.
The Fed said upon consummation of the proposal, Capital One would add approximately $82 billion in deposits and become the fifth largest depository in the U.S. with consolidated deposits of approximately $210 billion. With the addition of $92 billion in assets, Capital One would become the 20th largest depository in the U.S. measured by asset size with total consolidated assets of about $292 billion.
The deal is the first the Fed reviewed under a provision of the Dodd-Frank Act, which requires the central bank to consider whether mergers will result in “greater or more concentrated” risk to the financial system. ING was ordered by the European Union to sell the U.S. unit as a condition of its government bailout during the financial crisis.
The Fed noted in its statement that a significant number of commenters opposed the proposal, requesting that the Board only approve the proposal subject to certain conditions, or expressed concerns about the impact of the proposal on the financial stability of the U.S. banking or financial system.