Capital One Cleared To Buy HSBC's $30B Credit Card Unit

Law360, Wilmington (March 9, 2012, 8:31 PM EST) -- Banking regulators cleared Capital One Financial Corp. on Friday to purchase HSBC Holdings PLC’s $30 billion credit card business, despite questions raised by consumer advocates that the resulting credit behemoth would be “too big to fail.”

In a letter to Capital One’s lawyers, the Office of the Comptroller of the Currency gave its blessing to the transaction, saying it “satisfies relevant legal and policy requirements.”

The deal hands Capital One HSBC’s domestic credit card portfolio for a $2.6 billion premium over the total loans, enabling the...
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