Chevy Chase bought by Capitol One

[chefette]

For anybody with Chevy Chase loans, I just read an interesting article from Washington Post. Summary:

Capitol One buys Chevy Chase. The transaction to close in the first 3 months of this year. Capitol One has recieved $3.56 BILLION from the treasury dept.in bank bail outs.

Capitol One recognizes that in the buyout that they will acquire a $1.75 billion dollar loss on value of risky loans from Chevy Chase.

In 1994 Chase paid 11 million to the feds for allegations that IT AVOIDED making loans to minority neighborhoods, the practice known as red lining.

After that Chevy must have played nice with the feds because it then concentrated on a particular kind of RISKY mort. loan known to you and me as ARMs.

Well as far as I am concerned, Capitol One will be in the black with this buy since $3.56 billion minus $1.75 billion leaves them with a whopping $1.81 billion to do whatever they please.