Capital One Near Deal For HSBC’s US Credit Portfolio | CreditShout

Capital One Near Deal For HSBC’s US Credit Portfolio

By Kevin / August 9, 2011
Capital One Near Deal For HSBC’s US Credit Portfolio

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Capital One is in advanced talks to take over the US credit portfolio of HSBC. If the deal goes through, it would involve approximately $30 billion of credit card loans.

While a deal is expected to be announced soon, it has not been finalized. There is still a chance that the deal will not go through. Though that seems unlikely at this point, as leaks and rumors all say that negotiations are very advanced and almost completed.

The deal would be the second sale for HSBC this month.

It previously sold 195 retail banking branches to First Niagara Financial Group, netting $1 billion. These moves are in line with HSBC’s announcement earlier this year that they were reviewing their US consumer banking operations to focus on international customers.

On the other side of the equation, this would also be Capital One’s second deal in recent times. In fact, this move would be just the latest in a series of similar moves by Capital One. As recently as June, Capital One purchased ING Groep NV’s US online banking business. The final tally for this purchase was $9 billion in stock and cash.

When everything switches over from this deal, the company is expected to gain 7 million customers and approximately $80 billion in deposits.

Despite the economic downturn, they have actively acquired new business. Which helps explain why, in less than 30 years, the company has managed to become a significant player in the financial world. They currently hold $199.3 billion in assets and appear to be on the verge of adding more.

So maybe there is some benefit to Capital One’s relentless TV advertising campaigns and trotting out celebrity spokesmen. No matter what we say, we can be influenced by advertising. Or at least we let it influence what vendors come to the type of our mind.

The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone.Additionally, the opinions of the commenters are not necessarily the opinions of this site

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