Chevy Chase Bank will be bought by Capital One

Chevy Chase Bank the financial firm of risky loans is being sold to Capital One (NYSE:COF), one of the leading credit card companies is was announced today.

Capital One, will acquire 250 of Chevy Chase branches in the deal, although according to close sources no jobs should be affected by the buyout, Capital One will pay $520 million in stock and cash. Over recent years the giant credit card company has continued to pursue acquiring regional banks get gain access to their deposits, in turn the Capital Once uses the deposits to cheaply fund the credit card operations.

Capital One recently received $3.56 billion injection from the Treasury Department as part of the Governments bailout plan, to try and shore up the banking industry.

Chevy Chase faced massive losses due to risky loans it made to borrower in the housing boom, the bank is a family run business by a local business man 39 years ago B. F. Saul.

Source: Washingtonpost