Source Pravda.Ru

Capital One slashes its 2007 earnings forecast by 20 percent

By Margarita Snegireva. Capital One Financial Corp. announced that its 2007 earnings will be less than the company has expected because of increased provisions for loan losses and additional legal reserves in the fourth quarter.

Capital One Financial Corp. is a McLean, Virginia-based bank holding company specializing in credit cards, home loans, auto loans, banking, and savings products. Founded in 1988 by Richard Fairbank and Nigel Morris, the firm was a pioneer of the mass marketing of credit cards in the early 1990s and is now the fourth largest customer of the United States Postal Service.

In 2002, Capital One won the Wharton Infosys Business Transformation Award for its innovative strategy specifically related to their credit card products. In 2005, Capital One entered the retail banking market with its acquisition of New Orleans, Louisiana-based Hibernia National Bank.

On March 12, 2006, Capital One announced an agreement to acquire Melville, New York-based North Fork Bank for $14.6 billion U.S. dollars. The merger was completed on December 1, 2006. Upon the completion of the merger, the bank is to be renamed as "Capital One Bank".

Capital One said it is taking a $1.9 billion provision for loan losses in the fourth quarter, including about $1.3 billion in charge-offs. The company said it will also add about $650 million to its charge-off allowance because of recent delinquencies in its consumer lending businesses and "continued deterioration" in the approximately $700 million of home equity lines of credit it holds for investment.

Comments
Where does Russia keep her gold?
Russia to introduce criminal responsibility for those implementing anti-Russian sanctions
Russia to introduce criminal responsibility for those implementing anti-Russian sanctions
G7 wants to hold Russia responsible for everything
G7 wants to hold Russia responsible for everything
Russia to introduce criminal responsibility for those implementing anti-Russian sanctions
Unexploded Western missiles in Russia's hands: Russian air defenses to get even better
Defending the Social Media with the four-letter word
Unexploded Western missiles in Russia's hands: Russian air defenses to get even better
Defending the Social Media with the four-letter word
Germany begs USA for release
Poland defends its airspace with the help of Soviet systems made during the 1940s
G7 wants to hold Russia responsible for everything
Defending the Social Media with the four-letter word
G7 wants to hold Russia responsible for everything
G7 wants to hold Russia responsible for everything
G7 wants to hold Russia responsible for everything
G7 wants to hold Russia responsible for everything
Unexploded Western missiles in Russia's hands: Russian air defenses to get even better
Unexploded Western missiles in Russia's hands: Russian air defenses to get even better
Russia to deliver S-300 air defence systems to Syria for free