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At its second hearing on the deal, Capital One said its merger with ING's online bank unit was the safest option for the system.
September 27
WASHINGTON — The public will have more time to comment on Capital One Financial Corp.'s proposed deal for the credit card portfolio of HSBC Bank USA, the Office of the Comptroller of the Currency said Monday.
Following a request from several consumer groups, the OCC reopened the comment period and said it will now last through Dec. 19. Originally, commenters had until Oct. 21, and then until Nov. 7 after an earlier extension by the OCC.
In a Nov. 8 letter to the OCC, the groups had expressed concerns, among others, about how big Capital One's credit card business could become following the acquisition — which was announced in August — and that fair-lending allegations raised by consumer groups against the acquirer were still pending. They urged the OCC not only to extend the comment deadline but also to hold a public hearing about the deal.
The OCC made no mention of a hearing in its announcement, but scrutiny of a proposed acquisition by the McLean, Va.-based credit card giant is not without precedent. Earlier this year, the Federal Reserve Board satisfied a request to extend the comment deadline for Capital One's deal to buy the online U.S bank unit of ING Group. The central bank also announced three public hearings on the ING deal.
The National Consumer Reinvestment Coalition hailed the OCC's announcement Monday.
"We applaud the OCC for extending the comment period, as we had requested. And we hope that this also suggests that the OCC will hold public hearings, following in the footsteps of the Federal Reserve," NCRC president and chief executive John Taylor said in a press release.
In a statement, a Capital One spokeswoman said, "We appreciate the OCC providing an additional opportunity for any interested parties to express their views. Our history clearly demonstrates that our customers and local communities will see numerous benefits from this acquisition."
