The Federal Reserve Board has approved the notice by Capital One Financial Corp., based in McLean, Va., to acquire ING Bank, headquartered in Wilmington, Del., and to indirectly acquire shares of ShareBuilder Advisors LLC and ING Direct Investing Inc., both based in Seattle. The total acquisition is priced at $9 billion.
‘The board's action directed Capital One to take specific steps to ensure that its risk-management functions, including compliance, are commensurate with its new size and complexity,’ said the Fed in a press statement.
However, the Fed's action was condemned by the National Community Reinvestment Coalition, which argued that the acquisition would create the next potential too-big-to-fail financial institution.
‘We're extremely disappointed in today's decision,’ said John Taylor, head of the coalition, in an interview with the New York Times. ‘It appears the Federal Reserve waited until Valentine's Day to give Capital One a box of chocolates.’
Taylor added that the coalition was considering challenging the decision in court.