McLean's Capital One Makes Major Acquisition

Capital One, which is headquartered in McLean, will pay $9 billion to buy the online bank ING Direct USA, according to The Washington Post today.

The acquisiton will transform Capital One, primarily known as a credit card lender, (see the quirky TV commercials with barbarians) to a mainstram consumer bank, The Post reported.

"It also makes Capital One the country’s largest online bank, putting it at the forefront of an industry evolution that targets younger customers," the Post said. "The acquisition catapults Capital One from being the eighth-largest U.S. bank measured by deposits to the fifth — bigger than U.S. Bancorp and just below Citigroup."

“The acquisition of ING Direct is a game-changing transaction,” Richard D. Fairbank, Capital One’s chairman and chief executive, said in a statement. “Its innovative platform and customer focus are well aligned with Capital One’s own vision.”

Bloomberg Businessweek reported, ING, the biggest Dutch financial-services firm, has been ordered by the European Union to sell the U.S. unit as a condition of its government bailout during the financial crisis. The company discussed potential deals with firms including General Electric Co., CIT Group Inc., Ally Financial Inc. and Citigroup Inc., people familiar with the matter have said.

The agreement, which requires approval from the U.S. Federal Reserve and Dutch Central Bank, gives ING a seat on Capital One’s board, the Virginia bank said yesterday in an investor presentation. Capital One’s restructuring charges and transaction costs will total $210 million, according to the presentation

Fairbank, founder, Chairman and Chief Executive Officer of Capital One Financial Corporation, is a McLean neighbor. Fairbank lives not far from another neighbor Daniel Akerson, GM chief executive. Fairbank founded Capital One in 1988.

 Capital One headquarters is located just off of Dolley Madison Boulevard. The building that faces the Beltway sits on a 28-acre site in Tysons Corner area. The grassy, tree-filled campus offers a 9-story parking garage and outdoor courts for tennis, basketball, and volleyball.