Capital One Buys HSBC Credit Card Unit

Capital One Buys HSBC Credit Card Unit

August 10, 2011         Written By Lynn Oldshue

Capital One Financial Corp. continues to shop for growth and expansion.

The credit card issuer-turned-large-bank is paying $32.7 billion for the U.S. credit card division of the British HSBC to purchase $30 billion of credit card loans and store-branded credit cards. The deal will be completed in the second quarter of 2012.

The deal includes HSBC’s private label or store-branded cards and will make Capital One the third-largest issuer of private-label cards, according to the Wall Street Journal. The private label cards include Best Buy, Saks, and Neiman Marcus Inc.

HSBC will keep its corporate card business.

Capital One announced in June that it is paying $9 billion for ING’s American online banking operations.

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The information contained within this article was accurate as of August 10, 2011. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
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