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Moreover, Capital One is likely to use ING Direct's deposits to finance its main business: credit card issuance.
Construction loans proved to be very profitable, particularly for smaller banks as competition from larger banks and securities markets eroded their position in areas like mortgage lending and credit card issuance.
In 2011, Bank Negara clamped down on credit card issuance, limiting households with annual incomes of 36,000 ringgit, or $11,400, or less to two credit cards with a maximum credit line of no more than twice the monthly household income.
Capital One is not alone in its strategy of blending card issuance with retail banking.
Identix has won a contract with an unnamed Middle Eastern country to provide a facial recognition-based system designed to improve the integrity of a national ID card issuance process by screening for duplicates and aliases.
This, in turn, could return the pressure on AmEx, which holds itself to high credit standards for card issuance and charges merchants roughly 2.6% for access to its network.
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Bearish technicals coupled with financial institutions cutting back on card issuances and impending oversight from Washington could spell trouble for the No. 2 U.S. electronic payment network company.
Sen. Dodd's warning, a drawdown in card issuances by major financial institutions, slowing consumer spending and an uptick in national savings could serve to temper MasterCard's results next time around.
They dominate bank-card issuance.
But on any list of those things, subsidizing credit-card issuance has to be right near the bottom.
Based in Minneapolis, it specializes in identity-card issuance and technologies for online and mobile identity and transaction authentication.
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CEO of Professional Science Editing for Scientists @ prosciediting.com