February 15, 2012 6:31 PM
Regulatory Wrap: Wachtell Praises Approval of Capital One’s ING Direct Acquisition
Posted by Brian Baxter
Wachtell, Lipton, Rosen Katz got some good news this week when two of 2011′s biggest deals—Google’s $12.5 billion purchase of Motorola Mobility and Capital One’s $9 billion acquisition of ING’s U.S. banking unit—were approved by regulators.
In a three-page Valentine’s Day memo penned by a team of Wachtell lawyers led by corporate partner and executive committee cochair Edward Herlihy, the firm praised the Federal Reserve System’s approval of Capital One’s purchase of ING Direct USA.
The deal, which will make McLean, Virginia–based Capital One the fifth-largest lender in the U.S. as measured in total deposits, represented the first real test of the federal government’s new powers to oversee mergers between large financial institutions and global banking giants in the wake of the economic crisis of 2008.
The Federal Reserve’s board of governors issued an order Tuesday consenting to the merger between Capital One and ING Direct with the understanding that the acquirer revamp some of its internal controls for risk management and compliance.
By rejecting fears that the combined entity might become “too
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