DEBT FINANCING. FED examines the business online banking ING: Capital One-WSJ

No "> (Reuters)-The U.S. Federal Reserve was interrogated Capital One Financial Corp. to know if the acquisition of online banking business of ING Groep NV U.S. would create an institution" too big to fail, "said the Wall Street Journal.
Capital one was pressed by the Edf in a letter dated 29 August for details about "the nature and dollar volume" of financial activities in that both companies are involved, told the newspaper.
Fed officials requests a Capital to describe any of the markets where the Bank and ING Direct USA are market makers and to report information about exposure to counterparties, told the newspaper.
The Fed refused to comment on the newspaper.
Capital one spokeswoman Tatiana Stead told Reuters: "our response confirms that we are not engaged in the type or level of activities that raise systemic risk issues that the Act of Dodd-Frank sought to address".
"Furthermore, after this merger still will represent only 1.5% of the deposit market, well below the larger institutions," Stead said in a statement.
Following the financial reform act of Dodd-Frank last year, the Fed now must consider whether specific merger and acquisition would increase the overall risk to the financial system.
The Federal Reserve could not immediately be reached for comment by Reuters outside us regular office hours.
In June, Capital One has agreed to buy the business of online database of U.S. ING Direct of ING Groep in a stock and cash deal valued at $ 9 billion.
ING had to sell the business, one of the jewels of its franchise of retail banking services, as part of an agreement with the European Commission following his Dutch Government aid October 2008.

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