Capital One: We're No. 5!June 16, 2011: 5:12 PM ET
The credit card bank's planned purchase of online banker ING Direct will make it the fifth-biggest U.S. deposit gatherer.
So says SNL Financial, which notes Thursday that the $9 billion deal will vault Capital One (COF) past PNC Financial (PNC), U.S. Bancorp (USB) and the TD Bank unit of Toronto-Dominion (TD) on the list of the biggest U.S. banks by deposits (see chart, right).
So the deal makes Capital One a lot bigger, though the bank's press release does make you wonder if there is anything to say beyond that. CEO Richard Fairbank's statement is chock full of the buzzwords the flacks resort to when they have nothing better to say:
The acquisition of ING Direct is a game-changing transaction that delivers attractive deal economics immediately and compelling long-term strategic value. The combination of Capital One and ING Direct creates a unique and valuable banking franchise that includes advantaged access to assets, great local scale branch banking in attractive markets, and with ING Direct, the leading direct bank customer franchise with national reach. Adding ING Direct enhances and sustains key sources of shareholder value over the long-term, including growth, returns and capital generation.
Key sources of shareholder value indeed. Well, for now the stock market agrees, sending Capital One up 2%.