Capital One said to be close to purchasing HSBC’s credit card portfolio

Capital One Financial Corporation is moving closer to purchasing HSBC Holdings Plc.'s credit card portfolio, according to insiders.

A deal between the McLean, Virginia-based Capital One and HSBC may be announced in the near future, reports. During a presentation in May, HSBC revealed it held as much as $33 billion in loans.

In June, Capital One agreed to buy ING Direct USA, which added about $80 billion in deposits and earned Capital One seven million new customers. That purchase will be completed by early 2012 at the latest.

Even before the ING deal was announced, Capital One had begun bidding for HSBC’s credit card portfolio, according to the Wall Street Journal.

Less than 30 years ago, Capital One started as a credit card lender and transformed itself into a bank prior to the financial crisis. It is working to expand its loan book at a time when U.S. consumers are hesitant to take out new loans.

HSBC recently announced it was axing 30,000 jobs worldwide as it plans to extend its already strong presence in the quickly growing Asian market at the expense of regions and countries offering lower growth prospects, according to  The bank is also looking to shave $3.5 billion in costs.

Neither HSBC spokesman Robert Sherman nor Capital One spokeswoman Tatiana Stead could comment on the HSBC transaction, according to Bloomberg.

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