Bloomberg Quotes Manatt Partner on Fed’s Extended Merger Review
“Capital One’s ING Deal Will Face Federal Reserve Hearings, Extended Review”Bloomberg
August 26, 2011 – Bloomberg quoted Manatt’s Ellen Marshall, co-chair of the firm’s Financial Services and Banking Practice Group, on the Federal Reserve’s extended hearing of Capital One Financial Corp.’s proposed purchase of the ING Direct USA online bank.
In order to prevent risk to the U.S. economy from financial firms deemed “too large,” the Federal Reserve will uphold a mandate of the Dodd-Frank Act by holding three public hearings before approving Capitol One’s $9 billion deal with ING. The Fed has also extended the comment period to October 12, which Marshall says will slow down the merger.
“This annoys the people doing the deals because it slows things up and may direct attention in unexpected areas, but it’s part of what you bite off when you are a regulated enterprise and want to do a merger,” said Marshall. “The Fed does not want to appear cavalier about doing whatever Wall Street thinks is best.”
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