Fed delays ruling on Capital One buyout of ING

NEW YORK — The Federal Reserve is giving the go-ahead for Capital One to buy ING Direct for $9 billion.

The deal, which would create the nation's fifth-largest bank, was debated by the Fed's board of governors in a closed-door meeting Monday. A Fed spokesperson said the board considered the application and "expects to issue a decision soon" but will not do so immediately.

McLean, Va.-based Capital One Financial Corp. said in June that it planned to buy the U.S. digital unit of Netherlands-based ING Groep.

The deal is aimed at expanding its business as a national bank without adding to its roughly 1,000 branches.

ING Direct has about 7.5 million customers.

Community banks and consumer advocates opposed the deal, arguing it would create another bank "too big to fail" and one that relies too heavily on issuing credit cards, which are a riskier business than general consumer banking.

About 65 percent of Capital One's revenue comes from its heavily advertised credit card business, known for the slogan "What's in your wallet?" The bank also plans to buy HSBC's U.S. credit card business.

Capital One shares ended trading on Monday up 21 cents at $48.49. The stock, which rose another penny after hours, has traded between $35.94 and $56.26 in the past 52 weeks.