NEW YORK (AP) — The Federal Reserve delayed its decision again on Capital One's proposed $9 billion acquisition of ING Direct.
The deal, which would create the nation's fifth-largest bank, was debated by the Fed's board of governors in a closed-door meeting Monday. A Fed spokesperson said the board considered the application and "expects to issue a decision soon" but will not do so immediately.
The delay is the second in the process. The Fed was originally supposed to rule on the deal last week but put off the meeting until Monday citing scheduling issues.
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McLean, Va.-based Capital One Financial Corp. said in June that it planned to buy the U.S. digital unit of Netherlands-based ING Groep.
The deal is aimed at expanding its business as a national bank without adding to its roughly 1,000 branches. ING Direct has about 7.5 million customers.
The bank in a statement called the Fed's process "thoughtful and deliberative" and said it appreciates "the thoroughness of the Fed's review."
Community banks and consumer advocates oppose the deal, arguing it would create another bank that's "too big to fail" and one that relies too heavily on credit cards, which are a riskier business than general consumer banking.
About 65 percent of Capital One's revenue comes from its heavily advertised credit card business, known for the slogan "What's in your wallet?" The bank also plans to buy HSBC's U.S. credit card business.
Capital One shares ended trading on Monday up 21 cents at $48.49. The stock, which rose another penny after hours, has traded between $35.94 and $56.26 in the past 52 weeks.
ING Groep's New York Stock Exchange-listed American depositary shares added 20 cents, or 2.3 percent, to close regular trading at $8.74, before adding another 7 cents aftermarket.
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