Capital One plans to buy the US internet bank arm of ING. ING received a major bail out from the Dutch government in 2008 on the condition that it sells its US internet banking division. ING Direct is the largest online bank in the country with 7.7 million customers and Capital One plans to pay $9 billion in cash and shares for the division. The move is the latest step in Capital One's plan to branch out from its credit card lending roots should the deal go through it will make Capital One the seventh largest US bank by assets. The sale will not in any way affect ING's internet banking businesses in any of the other countries where it operates.
In addition to the purchase of ING’s internet division, Capital One is also reported to be working on a bid for HSBC's US credit card portfolio. The complimentary deals would allow Capital One to expand its services to both lending and secure funding and give the company an edge over its rivals at a time when banks are struggling to grow.
While the ING deal is currently in its final stages, a concrete offer has yet to be made on HSBC’s card portfolio.
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