Another too-big-to-fail bank? Voice your opinion at Federal Reserve hearing in Chicago

As you may know, Capital One recently applied to regulators to acquire ING Direct. The deal would create the fifth-largest bank in the country and raises substantial concerns about how the deal would impact communities.
 

Thanks to the hard work of members of the National Community Reinvestment Coalition, the Federal Reserve has extended the comment period on the proposed deal until October 12.The Fed will also hold public hearings on the consumer impact of the merger in Chicago, Washington, and San Francisco.

 

Federal Reserve Hearing on the Acquisition of ING Direct by Capital One

Tuesday, September 27

8:30 am

Federal Reserve Bank of Chicago

230 S. LaSalle St.

Register by September 15 (details below)

 

The Chicago hearing will be a unique opportunity to make your voice heard about the importance of accessible banking services and community investment. We encourage you to sign up to testify at the public hearing and tell regulators about your experiences working with Capital One and/or ING, the importance of strong community reinvestment commitments on your work, and other comments or concerns.

 

Woodstock Institute has a number of concerns about the potentially harmful results of a Capital One-ING deal, including:

 

Capital One is currently facing legal challenges. HUD is in the process of investigating a complaint filed by NCRC alleging racially discriminatory lending practices. Capital One also has a history of not honoring fair lending commitments with the US Department of Justice.

Capital One has a history of problematic credit card lending practices. Attorneys General in multiple states have investigated alleged false and misleading credit card advertising on the part of Capital One.

The deal demonstrates an inadequate commitment to the Community Reinvestment Act. As ING Direct is one of the largest internet banks in the country, its CRA service areas do not reflect where the bank does business. Regulators should secure commitments from Capital One that it will meet the needs of low- and moderate-income consumers wherever the bank does business.

 

To register for the hearing, please submit a written request to Alicia Williams, Vice President, Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, IL 60604 (email: ccaevents@chi.frb.org; fax: 312/913-2626) no later than 5:00 p.m. CT on September 15, 2011. The Federal Reserve requires that you include certain information in your request to testify. You can see the requirements here.

 

For more information about the Capital One-ING deal and a sample comment letter, please visit the National Community Reinvestment Coalition website.

 

For more information about the deal or how to testify, please contact Tom Feltner at tfeltner@woodstockinst.org or 312-368-0310.