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Capital One Makes Early Bid For HSBC's US Card Business
Originally posted by 5corpio
NEW YORK -(Dow Jones)- Capital One Financial Corp. (COF), which is in the final bidding for ING Groep N.V.'s (INGA.AE) U.S. online bank, is already plotting a complementary acquisition: It's an early bidder for HSBC Holdings PLC's (HSBA.LN, HBC, 0005.HK) U.S. credit card portfolio, according to people familiar with the matter.
The double deal would be an ambitious move for Capital One, which has a history of bold, transformational acquisitions. It would allow Capital One, a credit card company that over the years transformed itself into a bank, to pull ahead of its rivals in expanding lending and secure funding, at a time when banks are struggling to grow revenue.
Capital One is the leading contender, according to people familiar with the matter, to buy ING Direct USA, which has $82 billion in deposits and about 7 million bank customers. Given Capital One's business strategy, it would most likely use the fresh deposits to fund the kinds of loans it is most familiar with, mainly credit card and other consumer loans.
That's where the HSBC bid would come in. With consumers more reluctant to take on debt after the financial crisis, purchasing credit card loans from HSBC would give Capital One the kind of growth it can't generate itself in a sputtering economy.
Capital One doesn't need any more....more on this story: Capital One Makes Early Bid For HSBC's US Card Business -Sources
Also story: Capital One Submits Bid for HSBC’s U.S. Credit Card Unit | MyBankTracker.com
The double deal would be an ambitious move for Capital One, which has a history of bold, transformational acquisitions. It would allow Capital One, a credit card company that over the years transformed itself into a bank, to pull ahead of its rivals in expanding lending and secure funding, at a time when banks are struggling to grow revenue.
Capital One is the leading contender, according to people familiar with the matter, to buy ING Direct USA, which has $82 billion in deposits and about 7 million bank customers. Given Capital One's business strategy, it would most likely use the fresh deposits to fund the kinds of loans it is most familiar with, mainly credit card and other consumer loans.
That's where the HSBC bid would come in. With consumers more reluctant to take on debt after the financial crisis, purchasing credit card loans from HSBC would give Capital One the kind of growth it can't generate itself in a sputtering economy.
Capital One doesn't need any more....more on this story: Capital One Makes Early Bid For HSBC's US Card Business -Sources
Also story: Capital One Submits Bid for HSBC’s U.S. Credit Card Unit | MyBankTracker.com