Capital One To Buy Chevy Chase Bank

[ksimons]

Source: Washington Post

The deal would be another sign of how the financial crisis is fueling consolidation in the banking industry. Capital One, which would pay $520 million in cash and stock, has received a $3.56 billion investment from the Treasury Department as part of the government's effort to stabilize the banking industry.

"What's going on right now is that the strong banks are eating the weak banks," said Howard Shapiro, an analyst with Fox-Pitt Kelton. "Capital One is one of the alpha banks that will survive this financial crisis with enhanced market share and enhanced pricing power."

After spending more than $18 billion on banks in recent years, Capital One executives said earlier this year that they were not planning to move into new areas.

Capital One's founding chief executive, Richard Fairbank, has said his goal is to build "one of the nation's great banks."

Chevy Chase and Capital One said they could not comment.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2008/12/03/AR2008120302809.html?hpid=topnews

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What's in YOUR wallet, American taxpayers...
Oh wait, what WAS in our wallet is now in Capital One's wallet...
And they are buying up other banks with our money.

Isn't that nice?

[tularetom]

1. I didn't know he had a bank

Apparently he wasn't any better of a bank manager than he was a comedian.

[Pachamama]

2. Umm, Chevy Chase, MD is a town that has been in existence long before the actor was ever born...

FYI

[Frank Cannon]

3. Chevy Chase's real name is Cornelius Crane Chase...

which sounds like a character from "Frasier".

[awoke_in_2003]

4. Damn, he has a town named after him, too

note: it's called humor.

[Norrin Radd]

6. The reference is even older still:

http://en.wikipedia.org/wiki/The_Ballad_of_Chevy_Chase

[Robbien]

5. Capital One is buying banks, Morgan Stanley is buying Chicago parking meters

All with our dime

and not even thinking of lending that dime back to us as Paulsen told them to do.

[Dover]

8. And sadly, I don't think we can rely on the Obama administration to reverse it.

It is an enormous transfer of wealth and a continuation of the gutting of the treasury.
And the American people don't seem to have figured it out just yet. Maybe when they're
standing in a soup line?....

They've certainly been preparing people to make do with much less (via their own propaganda firms
and news companies), pushing the whole 'great depression' scenario.

[Dover]

7. All this consolidation makes me think this 'crisis' was rigged for that purpose.

I've read the white papers written for the World Bank and IMF about the plans and rationale for consolidation and it's necessity for the sake of greater 'efficiency' and globalization. So consolidation as a strategy is indeed one model. And if that's the case, how does one achieve it? They create a situation like we have right now and buy in at fire sale prices or eliminate the
smaller banks that aren't worth salvaging for its parts.

And we are footing the bill. What a deal!