Capital One Off late it has become the latest bank guilty of too big to fail. It is predicted that the $ 9.2 billion acquisition of online direct the bank to help them become the fifth largest bank across the United States, where more than $ 200 billion reserves.
In order to make these purchases would require permission from the Federal Reserve, which is perhaps the most important regulator of Capital One Under the Dodd-Frank Act, which the Fed wants to know how much risk is there, if the company is connected. If the risk is overshadowed by a host of benefits, such as trade stops.
So far the Fed has yet to decide to purchase risky. So the conclusion of the Fed on Capital One may have an impact on the right of the Dodd-Frank.
Citizen Community Reinvestment Coalition leads the Community interest groups said they oppose it, they put their point by saying that Frank Dodd is already in the bank as a systemically important because it has a heritage of more than $ 50 billion. So why should it be permitted to a bank to get bigger.
In addition, Capital One is likely to use ING direct deposits to finance its large companies such as the issuance of credit cards. And Capital One seems to increase significantly in the credit sector. Earlier this month, Capital One announced the purchase of the collection of credit cards HSBC in the value of approximately U.S. $ 30 billion. Following this agreement, there will always be the fifth largest issuer of credit cards in the United States, but its market share will increase to about 9% against 7%.