Bachus to Bernanke: Don’t delay bank merger

{mosads}He argued that the $9 billion deal, which would see domestic Capital One buy the American banking arm of the Dutch bank ING Groep NV, represents “a rare source of real domestic job growth” and should not be stifled.

European banking regulators required ING Groep NV to sell off its American business as a condition of it receiving government aid during the financial crisis.

The Fed announced in August that it would be holding three public meetings on the deal, and also would be extending the comment period on it through Oct. 12.

The Fed had come under pressure from left-leaning groups and individuals to further its consideration of the banking deal, which would make Capital One the nation’s fifth-largest bank.

Among the critiques were that the deal could make Capital One “too big to fail,” and that the Virginia-based bank had been subject to a complaint from the National Community Reinvestment Coalition that it had violated fair-lending laws. Capital One has defended itself against both claims.

But for the time being, Bachus finds himself in a familiar position: squarely opposed to his committee counterpart, ranking member Barney Frank (D-Mass.).

Frank sent a letter to Bernanke in August, urging the central bank to take its time and deliberately consider the arrangement.

“This proposed purchase would create the fifth-largest bank in the United States,” Frank wrote. “For this reason alone, care should be taken to thoroughly examine the impact of this purchase.”