Our name is changing to Capital One 360 and our colors are changing to red and blue – but our commitment to you is staying the same. Yep, it's true: As of February, we'll have a new name and fresh look on the outside – but on the inside, it's the same ING DIRECT you've come to know and love.Comment: Snapshot of website below (on 11/7/2012)
Capital One Near Takeover of ING’s Online Bank
Excerpt:
Capital One Financial Corp. (COF), this year’s top performer in the KBW Bank Index, is nearing a deal to buy ING Groep NV (INGA)’s U.S. online bank for about $9 billion in cash and stock, said people with knowledge of the matter.
The companies may reach an agreement for ING Direct USA as soon as today, said the people, who spoke on condition of anonymity because the negotiations are private. The talks may still fall apart, said the people, adding that General Electric Co. (GE) also made a bid. Capital One may raise $2 billion to complete the deal, one person said.
GE, Capital One Bid for ING Direct USA: Report
Excerpt:
General Electric (GE) and Capital One Financial(COF) submitted bids for ING's (ING) U.S. online bank last week in a sale that may raise about $9 billion, Bloomberg reported, citing people with direct knowledge of the matter.
Capital One to Bid for ING Direct?
Excerpt:
On Sunday, Bloomberg reported that Capital One Financial Corp. (NYSE: COF - News) is one of the few firms that are interested in buying ING Direct USA. ING Direct USA is the online banking unit of Amsterdam-based ING Groep NV (NYSE: ING - News).
Apart from Capital One, ING has been in talks with several other companies and is looking to either sell ING Direct or merge it with a lending firm. Other companies that are in fray include SJB National Bank, General Electric Co. (NYSE: GE) and CIT Group Inc. (NYSE: CIT).
Earlier, ING had been in talks with Citigroup Inc. (NYSE: C) to combine ING Direct with Citigroup’s credit-card business, but the talks somehow failed to materialize.
As a part of the European Union’s (EU) approval of restructuring plan, ING needs to sell off ING Direct by 2013 in order to receive €10 billion ($14 billion) as bail out money.
Online Checking: Are the Lower Fees Worth the Hassle?
Excerpt:
To some people accustomed to face-to-face service, online banking isn't an easy sell. To address such concerns, ING Direct promises its Electric Orange checking account holders that they will speak to a live rep within 20 seconds of calling customer service. The bank, which offers 0.25% interest on checking accounts, says it has seen an 80% jump in new accounts in February and March to date from the previous two months.
Another potential hassle: depositing checks. With a traditional checking account, customers can stride into a branch or deposit a check via ATM. Those who opt for an online-based account must mail in paper checks and wait a day or two for the funds to go through.
Federal savings bank USAA has devised another solution. It offers an iPhone and Google Android phone application that lets customers scan an image of a check to make a deposit. One caveat: This feature is currently available only for eligible USAA members, typically military members and their families, though its online checking account is available to anyone. Analysts expect other banks to roll out similar technology soon.
Comment: good read by the CEO of INGDirect!
Why Mortgage Modification Isn't Working - The loan adjustment success rate is just 1%
Excerpt:
That's a success rate of just 1%. This means that up to 99% of eligible homeowners struggling with their mortgage payments have been unable thus far to modify their loans.
A big reason for HAMP's limited success is that the government is suffocating banks with counterproductive accounting rules. Under current law, if a bank modifies a mortgage it must record the write-down as an expense on its books. For example, if a homeowner's monthly mortgage payment is reduced by $400 per month for 24 months, the bank has to report that it "lost" $9,600 ($400 times 24 months).
The bank, though, didn't lose any money—it's still scheduled to receive the totality of the loan principal, just less interest.
This rule, for obvious reasons, makes banks reluctant to modify. They don't want to take the "loss," which can get very big for larger mortgages with long modified periods. So there's a huge financial disincentive to offer modification.
Comment: Email to customers today
The consequences of the mortgage meltdown on financial institutions and individuals continue to erode many Americans' dreams. We will continue to stress the right way to achieve home ownership – buying only as much house as you can afford and paying off your mortgage as fast as possible. In return for good credit and prioritizing home investment, ING DIRECT mortgage Customers are rewarded with exceptional rates and a transparent, direct administration process. Rather than selling your mortgage to another bank or investor the minute you get it, we keep your mortgage and service it here. Doing so gives us flexibility to find innovative solutions to help Customers keep their homes during unexpected financial downturns.
While we don’t have an Orange crystal ball, we do expect the economy to remain fragile through 2009. The best course of action for our Customers is to be disciplined: avoid splurging; identify and cut out unnecessary expenses and save for what's essential; and hedge against those tough times. We can all benefit by developing good spending habits: confront - and cut up - credit cards; use your home as a savings vehicle - not as an ATM; and establish and contribute regularly to an IRA or 401(k).
