Information AboutCapital One |
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| companies based in virginia | |
| companies established in 1988 | |
Capital One Financial Corp. () is a McLean, Virginia -based Bank Holding Company specializing in Credit Cards , Home Loans , Auto Loan s, 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 .1 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".http://phx.corporate-ir.net/phoenix.zhtml?c=70667&p=irol-newsArticle2&ID=830144&highlight=, CapitalOne.com, accessed July 3, 2006 UNUSUAL GROWTH In its growth, Capital One has bucked a few conventional wisdoms within the ." This risk arises from the often cyclical nature of consumer lending; it can be very profitable industry in good times and markedly unprofitable in bad, such that a monoline company -- which lacks other sources of revenue -- will go out of business or be acquired fairly cheaply during hard times. This is one reason that most consumer lending monolines in the past 20 years have either gone out of business (e.g., The Money Store, NextCard , Royal Acceptance) or have been acquired (e.g., MBNA , Beneficial , First USA ); Capital One is notable for having experienced neither. This precarious nature of remaining a monoline prompted Capital One's entry into retail banking in 2005, which has been similarly uncommon. Whereas many banks often expand into consumer lending, Capital One is the first and only consumer lending monoline to go the other direction and expand into retail banking with major acquisitions (the purchases of Hibernia and North Fork). However, Capital One's Stock performance in the latter half of this decade has largely been flat, prompting modest speculation among Wall Street analysts that the company may be a ripe acquisition target or merger partner. MARKETING Capital One is a major sponsor of sports teams. In 2001 Capital One became the principal sponsor of the Florida Citrus Bowl, an annual College Football game played in Orlando, Florida , renaming it the Capital One Bowl . In the UK, the company currently sponsors Premier League football club Sheffield United and Football League One club Nottingham Forest . ]] INTERNATIONAL OPERATIONS Capital One commenced operations in Canada in 1996. Its head office is located in Toronto , Ontario . Unlike its diversified American parent, the Canadian business currently operates solely in the credit card market. The UK headquarters of Capital One is in Nottingham , England . Capital One also has a presence in Spain , with the local office located in Madrid . The company was once active in France and South Africa , but has since withdrawn from these markets. DIVERSITY Capital One received a 100% rating on the s than any other Financial Services company (19th overall), H1B.info though in 2005 it was 4th in financial services (34th overall). Top 500 H1B Visa Sponsors 2005 CONTROVERSY Like most credit card companies that issue cards to people with poor or no credit (called " Subprime "), Capital One offers multiple cards with low limits to some consumers, which can result in multiple over-limit and late payment fees and is considered by some consumer advocates to be predatory. {Link without Title} Defenders of the practice argue that credit issuers should not be held responsible for borrowers' decisions. To date, Capital One has not disclosed its customers' total credit limits to Credit Reporting Agencies .2 This could result in lower credit scores for the company's customers, since it could artificially increase a customer's utilization, a measure of credit balance as a percentage of credit line. Capital One recently announced an end to this practice, and has announced that it will report credit limits to credit reporting agencies by the end of 2007.3 BUSINESS AREAS Capital One Financial Corporation is the Parent Company of Capital One Auto Finance, or COAF, based in Plano, Texas . After buying PeopleFirst , it became the largest Internet auto lender, as well as one of the top US auto lenders overall. The company, which previously sold auto loans only through Direct Mail and Auto Dealership s, lets auto owners Refinance existing auto loans and shoppers apply for new auto loans online. A decision usually comes within 15 minutes, after which the buyer receives a " Blank Check " for up to the approved auto loan amount, which the buyer uses to purchase a car. To the dealership, it is as if the buyer were paying cash. The checks can be used to purchase a new or Used Vehicle , refinance, or buy out a Lease (providing the Negotiating Power of cash). COAF sells auto loans across the credit spectrum, then Securitizes and resells them. Unlike other financial service companies of similar size, Capital One is notable for abstaining from student lending. MANAGEMENT & CORPORATE GOVERNANCE Key executives include:
The current members of the Board Of Directors of Capital One are:
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