Capital One/ING Merger

Strong, vibrant communities depend on the availability of sustainable banking practices. Greenlining believes that all individuals, families and small businesses deserve the opportunity to build wealth through access to credit and banking services. Banks are critical partners in wealth creation and have a responsibility to serve and give back to all communities.

Capital One/ING Merger

Earlier this year, Capital One-America's largest subprime credit card company-applied to acquire ING Direct, an Internet bank. With this acquisition, Capital One will become the fifth larges  bank in the US and will expand its presence in California.

Why is this bad for our communities? Capital One is simply not a responsible corporate citizen:

• Capital One has a history of targeting low income and minority communities with predatory credit cards. These cards have high interest rates and late fees that drive cardholders further and further in debt.
• Despite the fact that 12% of all of their credit card customers are in California, Capital One has no reinvestment or philanthropic commitment to customers in the state. Their excuse? Capital One has no branches in California, and therefore no regulatory obligation to lend or invest back into the state.
• Capital One has a dismal record of small business lending (SBA) and home lending. In short, Capital One believes that it can get away with preying on communities in California with its credit card and auto lending, but feels no need to extend responsible credit back to communities in the form of small business and home loans.

Greenlining and Others Stand Up

On Wednesday, October 5, a public hearing on the Capital One/ING merger was held at the San Francisco Federal Reserve Bank. Greenlining and many coalition leaders testified against the merger. The hearing was a huge success, with over 100 advocates from all across the state attending to raise their voice to oppose the merger.

The highlight of the San Francisco hearing was three high school students from Leadership Public Schools-Hayward who testified on how the Capital One/ING merger will negatively impact their communities and futures. For more read the high school students testimony.

Greenlining is advocating for the Federal Reserve to require Capital One to do the following before any action is taken on the merger:

• Set aside 12% of its national community reinvestment commitment for California and develop a California-specific reinvestment plan with local community leaders
• Increase home loans to communities of color and participate in state and federal mortgage refinancing programs
• Increase SBA loans and contract with diverse-owned California small businesses
• Offer credit repair services to borrowers who have been driven into debt by Capital One's subprime credit cards

For more, read Greenlining's testimony. 

Raise Your Voice?

There is still time to raise your voice and oppose this merger! You can do your part by doing  any one of the following:
The comment period has ended but the Federal Reserve needs to hear from you.   Submit your comments to the Federal Reserve opposing this merger and letting Capital One know that they need to be held accountable to our communities. All you have to do is go to this website, type in your name and contact information, and press send!  The letter, which has been written by the National Community Reinvestment Coalition, will immediately be sent to the Federal Reserve as your comment on the merger.	Download here
Greenlining has invited Capital One CEO Richard Fairbank to come to California to meet with local community leaders and to discuss his commitment to investing back in the state.  Until he comes, we encourage you to print out this "WANTED: For Predatory Lending" poster  and put it up in your offices and communities! Contact Capital One directly by sending an email to Stacey Cooper, Capital One's CRA officer, or a letter to Capital One's corporate headquarters (Capital One Financial Corporation, 1680 Capital One Drive, McLean VA 22102)