It’s a dream come true situation for Fairbank, the Capital One Chief Executive. From his fourteenth floor in McLean office Fairbank had always had an eye on the Washington Bank. In his mind of course, this was completely out of reach as it was a privately held bank.
Just a day after outlining his dreams to his associates Fairbank received a call from an investment banker based in New York with the good news that the Chevy Chase was actually on the block.
Fairbanks initial reaction was that it was a bit spooky to think that the prophesy might just come true. A remote possibility turned into reality when an announcement was made by Capital One that it was acquiring Chevy Chase for $520 million over a period of time. The amount is more than what it pays for the bank. Private capital was raised for this deal according to Capital One which said tax savings was not a major factor here.
The credit card company Capital One is all set to change the landscape of Washington banking. Capital One has recently been purchasing regional banks with the help of which the credit card company has gained a strong presence in its home region. Chevy Chase based in Bethesda adds over 244 of its local branches to Capital One’s already existing hundreds of bank branches.
According to sources from Capital One, there were no immediate plans to lay off employees in Chevy Chase or even bring about any changes in the operations of the bank.
