Rev. Jackson Hits at Capital One

September 28, 2011
Wall Street Journal P. C15
credit card news

Consumer advocacy groups and Rev. Jesse Jackson criticized Capital One Financial's business model at a hearing the Federal Reserve held in Chicago to allow the public a chance to comment on Capital One's planned acquisition of ING Direct USA. Jackson said the bank's credit card business is so risky it would pose a threat to the U.S. financial system. Despite Capital One's vows to hire new workers and invest in underserved communities, the civil rights icon said the bank markets expensive credit cards to vulnerable borrowers. The $9 billion deal would make the bank the fifth-largest in the nation based on deposits. Capital One's general counsel, John Finneran, denied that the bank is too entrenched in the credit card business, claiming that it paired down its cards beginning in 2005. Still, consumer interest groups such as the National Community Reinvestment Coalition oppose the deal, claiming the bank has a poor track record of unsavory lending.
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