Federal Reserve to Hold Hearings on Too-Big-to-Fail Acquisition

Coalition of national and local community and civil rights organizations claim initial win

WASHINGTON, Aug. 26, 2011 /PRNewswire-USNewswire/ -- The Federal Reserve Board today announced that it would hold public hearings and extend the comment period on the Capital One acquisition of ING Direct. The decision came following a coalition effort, led by the National Community Reinvestment Coalition (NCRC) and Congressman Barney Frank, to allow the public an opportunity to weigh in on the merger, which will create the 5th largest bank by deposits in the United States.

"The Federal Reserve has recognized the critical importance of this issue, and its potential impact on consumers, communities and the economy, or they would not have taken this significant step. Does this acquisition create a significant public benefit, or does it only benefit the bank by making them too-big-to-fail, thereby spreading their risk to the American taxpayer? That is the standard that the Dodd-Frank act set up, and this is the most important first test of that law," said John Taylor, President and CEO of NCRC.

"This slows down a process that otherwise would not have allowed citizens the opportunity to share their concerns about the capacity and record of these two institutions serving the public needs and convenience, especially for working class people. Now, the public will benefit from a more robust debate about whether or not this deal is in the best interest of the nation," said Taylor.

Since the announcement of the deal in July 2011, the National Community Reinvestment Coalition (NCRC) has expressed serious concern regarding the acquisition of ING Direct by Capital One. In an August 16 letter and then in a joint letter on August 22 signed by 20 national organizations to Federal Reserve Board Chairman Ben Bernanke, NCRC and its has requested the Federal Reserve to hold public hearings and extend the comment period.

The National Community Reinvestment Coalition is an association of more than 600 community-based organizations that promote access to basic banking services, including credit and savings, to create and sustain affordable housing, job development and vibrant communities for America's working families. Find out more at: www.ncrc.org

Contact: Jesse Van Tol (202) 464-2709
[email protected]

SOURCE National Community Reinvestment Coalition