Bloomberg Anywhere Login


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Capital One Won’t Call TruPs Until Final Rule Trigger, CFO Says

Nov. 3 (Bloomberg) -- Capital One Financial Corp. said it won’t call its trust-preferred securities until final action is taken on the rule that limits their use as regulatory capital.

“Our belief is that 2013 is when we will get the final action that we believe will trigger the event of having a change in capital treatment, which would certainly allow us to call them at that time,” Chief Financial Officer Gary Perlin said today at a conference in Boston. Capital One, based in McLean, Virginia, may call the securities next year if the rule is completed by then.

Capital One, which announced a $9 billion purchase of ING Groep NV’s U.S. online bank earlier this year, would be able to use the ING Direct USA brand name for 1 1/2 years and keep the Internet lender’s orange ball logo.

“I can’t tell you what we’ll do with it,” Perlin said. “One can imagine a bunch of Visigoths playing soccer,” he said, referring to the lender’s television advertising campaign that features the characters in commercial settings using the bank’s credit cards.

Capital One climbed 3.4 percent to $46.74 in New York. The stock has advanced 9.8 percent this year, making it the only gainer in the 24-company KBW Bank Index.

The ING Direct acquisition and a separate purchase of about $30 billion in credit-card assets from HSBC Holding Plc are more valuable together, Perlin said. The transactions make economic sense if considered separately, the company has said.

Banks are seeking to slash interest costs by repaying TruPS, which typically pay higher rates than other securities. The Dodd-Frank Act prevents banks from counting the securities as regulatory capital starting in 2013. Hybrids, including TruPS, blend characteristics of debt and equity.

To contact the reporter on this story: Dakin Campbell in San Francisco at

To contact the editor responsible for this story: David Scheer at

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.