Under the Dodd-Frank Act, the Federal Reserve is required to review mergers that result in a possible threat to the U.S. financial system.
“The board considered the application at its meeting this afternoon and expects to issue a decision soon,” the Federal Reserve said in a statement yesterday, according to Bloomberg.
Three hearings were authorized by the Federal Reserve to allow time for public comment, and the comment period on the acquisition was extended despite opposition against mergers on behalf of concerned consumer advocate groups.
If the deal, proposed eight months ago, is approved, ING plans to repay aid from its native Netherlands. ING is also under bailout obligations to break up the bank before 2013. The acquisition would bump Capital One up from number eight to the fifth-largest lender based on U.S. deposits.
“This is a thoughtful and deliberate process and we appreciate the thoroughness of the Fed’s review,” Tatiana Stead, a Capital One spokeswoman, said, Bloomberg reports. “We look forward to their final decision and the positive impact the acquisition will have on our customers, associates, shareholders and our communities.”