August 15, 2011
RESPONSE OF CAPITAL ONE FINANCIAL CORPORATIONTO THE COMMENT LETTERS SUBMITTED BYNATIONAL COMMUNITY REINVESTMENT COALITION ANDINNER CITY PRESS/FAIR FINANCE WATCHTO THEFEDERAL RESERVE SYSTEM
Capital One Financial Corporation, McLean, Virginia (“Capital One”),appreciates the opportunity to respond to assertions in the comment letters submitted by NationalCommunity Reinvestment Coalition (“NCRC”) and Inner City Press/Fair Finance Watch (“ICP,”and together with NCRC, the “Commenters”) in connection with the notice Capital Onesubmitted to the Board of Governors of the Federal Reserve System (the “Board”) on July 15,2011 (the “Notice
”), to acquire all the outstanding shares of common stock of ING Bank, fsb,Wilmington, Delaware (“ING Bank”), and its subsidiaries, Sharebuilder Advisors, LLC and INGDirect Investing, Inc., both of Seattle, Washington (the “Acquisition”), pursuant to section4(c)(8) and 4(j) of the Bank Holding Company Act of 1956, as amended (the “BHC Act”). Theassertions in the letter directed to Capital One or ING Bank focus primarily on the retail lendingrecords of Capital One and ING Bank and other aspects of their records in meeting the needs of their respective communities, the sufficiency of the public benefits of the Acquisition, and thepotential for systemic risk resulting from the proposal. In addition, the Commenters’ lettersinclude requests that the Board extend the comment period and hold public hearings on theNotice.
For the reasons set forth below, Capital One believes that the record of the noticeclearly supports approval of the Acquisition. As demonstrated in the Notice, the Acquisitionsatisfies all the financial, managerial, competitive, public benefits and other factors the Boardmust consider in acting on the Notice under the BHC Act. In addition, Capital One’s provenrecord of meeting the needs of the communities it serves is evidenced by the CommunityReinvestment Act (“CRA”) performance records of its subsidiary banks, Capital One Bank (USA), National Association (“COBNA”) and Capital One, National Association (“CONA”).As noted in the Notice, the banks’ primary federal supervisors rated the CRA performance of COBNA as “Outstanding” and CONA as “Satisfactory” at their most recent CRA performanceevaluations.
In addition, ING Bank’s CRA performance was rated “Outstanding” at its lastevaluation by the Office of Thrift Supervision (“OTS”). Capital One also has implementedrobust compliance risk management systems to ensure compliance with fair lending and otherconsumer protection laws. Moreover, the Acquisition will provide strong public benefits byproviding customers of ING Bank with access to a much broader array of deposit and loanproducts that ING Bank does not currently offer, including fixed-rate home mortgage loans, anda broad network of automated teller machines (“ATMs”). The Acquisition also would not result
This response does not address other unsubstantiated allegations or assertions by the Commenters.
These evaluations were conducted in 2007. COBNA was a state-chartered member bank at that time, and theevaluation was performed by the Federal Reserve Bank of Richmond. CONA’s evaluation was performed by theOffice of the Comptroller of the Currency (the “OCC”).