History of Capital One in Timeline
Capital One Financial Corporation, established in 1994 and headquartered in Tysons, Virginia, is a major American bank holding company. Specializing in credit cards, auto loans, banking, and savings accounts, it ranks as the 12th largest bank in the United States by assets. Capital One is also a leading issuer of Visa and Mastercard credit cards and holds a significant position in the US car finance market.
1987: Customized Credit Card Offers Idea
In 1987, Richard Fairbank and Nigel Morris developed the idea of using information technology and statistical analysis to create customized credit card offers for different customer segments.
1988: Signet Bank Partnership
In 1988, Richard Fairbank and Nigel Morris convinced Signet Bank to start a credit card division called Signet Financial, utilizing their approach.
1991: Successful Mass Mailing Campaign
In 1991, Fairbank and Morris achieved great success with a mass mailing campaign that transferred existing credit card balances to Signet for lower interest rates.
1991: Telephone Consumer Protection Act Enacted
The Telephone Consumer Protection Act of 1991 was put into law to protect consumers from unsolicited telemarketing calls.
July 21, 1994: Founding of Capital One
Capital One Financial Corporation was founded on July 21, 1994. The company specializes in credit cards, auto loans, banking, and savings accounts. It is headquartered in Tysons, Virginia, with primary operations in the United States.
October 1994: Renaming to Capital One
In October 1994, after its initial public offering, OakStone Financial was renamed Capital One.
February 1995: Completion of Spin-off
Capital One completed its spin-off from Signet Financial in February 1995.
1996: Innovative Techniques and Federal Approval
In 1996, Capital One adopted innovative techniques like co-branded and secured credit cards to attract customers. They also received federal approval to set up Capital One FSB, allowing them to retain and lend out deposits and issue auto installment loans.
1996: International Expansion
In 1996, Capital One expanded its operations to the United Kingdom and Canada, tapping into a large international market for its credit cards.
1997: Steady Growth
By 1997, an article in Chief Executive noted that Capital One held $12.6 billion in credit card receivables and served over nine million customers.
July 1998: Acquisition of Summit Acceptance Corporation
In July 1998, Capital One acquired the auto financing company Summit Acceptance Corporation.
1998: S&P 500 Listing and Stock Milestone
In 1998, Capital One was listed in the Standard & Poor's 500, and its stock price hit the $100 mark for the first time.
1999: Expansion Beyond Credit Cards
In 1999, CEO Richard Fairbank announced plans for Capital One to use its consumer data expertise to offer loans, insurance, and phone services.
October 2001: Acquisition of PeopleFirst Finance LLC
In October 2001, Capital One acquired PeopleFirst Finance LLC, which was later rebranded as Capital One Auto Finance Corporation in 2003.
2001: Capital One Sponsors Florida Citrus Bowl
Capital One became the primary sponsor of the Florida Citrus Bowl, a college football game, in 2001, marking the beginning of a long-term investment in sports marketing.
2002: Proposed Agreement with USPS
In late 2002, Capital One and the USPS proposed a negotiated services agreement for bulk mailing discounts.
2003: Capital One Sponsors Nottingham Forest F.C.
Capital One entered into a sponsorship agreement with Nottingham Forest F.C., an English soccer club, in 2003. This partnership lasted until 2009.
2003: Rebranding to Capital One Auto Finance Corporation
In 2003, PeopleFirst Finance LLC, acquired by Capital One in 2001, was rebranded as Capital One Auto Finance Corporation.
2003: Florida Citrus Bowl Renamed Capital One Bowl
The Florida Citrus Bowl was officially renamed the Capital One Bowl in 2003, reflecting the company's significant sponsorship of the college football game.
January 2005: Acquisition of Onyx Acceptance Corporation
In January 2005, Capital One acquired automobile loan financer Onyx Acceptance Corporation.
2005: Acquisition of Hibernia National Bank
In 2005, Capital One became the first monoline credit card issuer to buy a bank by acquiring Hibernia National Bank.
December 2006: Capital One Acquires GreenPoint Mortgage
Capital One entered the mortgage market in December 2006 with the acquisition of GreenPoint Mortgage as part of a $13.2 billion deal for North Fork Bancorp Inc.
2006: Extension of USPS Agreement
In 2006, the initial three-year agreement with the USPS was extended.
2006: Credit One Bank's Logo Adoption
In 2006, Credit One Bank adopted its black and blue "swoosh" logo, which later caused confusion with Capital One's similar logo.
2006: Acquisition of North Fork Bank
In 2006, Capital One acquired North Fork Bank for $13.2 billion, reducing its dependency on the credit card business alone.
2006: Capital One Sponsors Sheffield United F.C.
Capital One became a sponsor of Sheffield United F.C., another English soccer club, from 2006 to 2008.
2007: Capital One Closes Mortgage Platform
During the 2007 subprime mortgage crisis, Capital One made the difficult decision to shut down its GreenPoint Mortgage platform. This move led to 1,900 job losses and cost the company $860 million in charges. The closure was partly driven by investor pressures and the challenging economic climate.
2007: Consideration of Netspend Acquisition
In 2007, Capital One considered acquiring Netspend for $700 million but ultimately did not complete the deal.
June 2008: Complaint Against USPS
In June 2008, Capital One filed a complaint against the USPS regarding the terms of the next agreement, comparing them to those of Bank of America. The complaint was later withdrawn after a settlement.
2008: Capital One Acquires Check-Cashing Businesses
Around 2008, Capital One acquired a small portfolio of check-cashing businesses.
2008: Capital One Ends Sheffield United F.C. Sponsorship
Capital One ended its sponsorship of Sheffield United F.C., an English soccer club, in 2008.
2008: Introduction of Capital One's New Logo
In 2008, Capital One introduced its blue and red "swoosh" logo and undertook a $13 billion marketing campaign.
2008: Capital One Receives TARP Investment
In 2008, in the wake of the financial crisis, Capital One received a $3.56 billion investment from the United States Treasury as part of the Troubled Asset Relief Program (TARP), a government initiative to stabilize the financial system.
February 2009: Acquisition of Chevy Chase Bank
In February 2009, Capital One acquired Chevy Chase Bank for $520 million in cash and stock.
June 17, 2009: Capital One Repays TARP Funds
On June 17, 2009, Capital One successfully completed the repurchase of stock issued to the U.S. Treasury under the Troubled Asset Relief Program (TARP). The total repayment amounted to $3.67 billion, resulting in a profit of over $100 million for the U.S. Treasury.
2009: Capital One Secures Naming Rights to Maryland Stadium
Capital One acquired the naming rights to the University of Maryland Terrapins football stadium in 2009 following its acquisition of Chevy Chase Bank. The stadium was renamed Capital One Field at Maryland Stadium (formerly Byrd Stadium). This agreement continued until 2022.
2010: Capital One Features Alec Baldwin in Ad Campaign
Capital One launched a new television advertising campaign in 2010 featuring actor Alec Baldwin as their spokesperson.
January 2011: Acquisition of Hudson's Bay Credit Portfolio
In January 2011, Capital One acquired Hudson's Bay Company's private credit card portfolio from Synchrony Financial.
April 2011: Deal with Kohl's
In April 2011, Capital One signed a deal to manage Kohl's private label credit card program for seven years.
June 2011: Capital One to Acquire ING Direct
Capital One announced its intention to acquire ING Direct from ING Group for $9 billion in cash and stock in June 2011. This acquisition marked a significant expansion of Capital One's presence in the online banking sector.
August 2011: Agreement to Acquire HSBC's U.S. Credit Card Operations
In August 2011, Capital One reached an agreement to acquire HSBC's U.S. credit card operations for $31.3 billion.
August 26, 2011: Federal Reserve Announces Public Hearings
On August 26, 2011, the Federal Reserve Board of Governors announced that they would hold public hearings regarding Capital One's proposed acquisition of ING Direct. This move came amidst concerns over potential systemic risks and compliance with the Community Reinvestment Act. The public comment period was also extended to October 12, 2011.
October 12, 2011: Public Comment Period Extended
The public comment period for Capital One's acquisition of ING Direct was extended to October 12, 2011. This extension reflects the concerns raised by various groups, including civil rights organizations and consumer advocates, who argued that the deal needed further scrutiny under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
2011: Capital One's Charitable Giving Scrutinized
In 2011, the National Committee for Responsive Philanthropy (NCRP) criticized Capital One for their low rate of charitable giving, which the NCRP stated was 0.024% of revenue, much less than the industry median. Capital One disputed this, saying their giving totaled $30 million that year.
February 2012: Capital One Completes ING Direct Acquisition
After months of review and regulatory approvals, Capital One finalized its acquisition of ING Direct in February 2012. This move strengthened Capital One's position in the online banking market.
February 2012: Support for Isis Mobile Wallet
In February 2012, Capital One, along with other banks, announced support for the Isis Mobile Wallet payment system.
May 2012: Completion of HSBC Acquisition
In May 2012, Capital One completed the acquisition of HSBC's U.S. credit card operations, including private issued credit cards for several high-end retailers.
July 2012: Capital One Fined for Misleading Customers
July 2012 saw Capital One fined $210 million by the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau. The fine was levied because Capital One misled millions of customers into paying extra fees for services like payment protection and credit monitoring.
October 2012: Capital One Receives Permission to Merge ING Direct
In October 2012, Capital One received regulatory approval to merge ING Direct into its existing operations, paving the way for a unified brand and customer experience.
November 2012: ING Direct Rebranded as Capital One 360
Capital One completed the integration of ING Direct in November 2012 by rebranding it as Capital One 360. This rebranding signified the consolidation of the two entities and the expansion of Capital One's digital banking services.
2012: Closure of 41 Branch Locations
In 2012, Capital One closed 41 branch locations.
2012: Capital One Sponsors EFL Cup
Capital One expanded its sports sponsorship portfolio by becoming the sponsor of the EFL Cup, a prestigious English soccer knockout tournament, from 2012 to 2016.
September 2013: Dropping Support for Isis Mobile Wallet
In September 2013, Capital One dropped its support for the Isis Mobile Wallet payment system.
October 2013: Prior Express Written Consent Required for Telemarketing Calls
October 2013 saw the implementation of "prior express written consent" requirements for telemarketing calls.
2013: Capital One Drops Alec Baldwin, Hires Jennifer Garner
Following a public controversy involving Alec Baldwin, Capital One decided not to renew his contract as spokesperson in 2013. Actor Jennifer Garner was subsequently hired to replace him in the advertising campaign.
2013: Capital One Settles SEC Investigation
In 2013, Capital One settled a case with the U.S. Securities and Exchange Commission (SEC) for $3.5 million. The SEC had criticized Capital One for allegedly understating auto loan losses during the 2007-2008 financial crisis. While the settlement did not require Capital One to admit wrongdoing, it marked the end of a period of regulatory scrutiny.
February 2014: Capital One Invests in ClearXchange
In February 2014, Capital One made a strategic move into the peer-to-peer money transfer market by acquiring a 25% stake in ClearXchange, a service facilitating electronic funds transfers using mobile numbers or email addresses.
May 2014: Extension of Kohl's Deal
In May 2014, the contract for managing Kohl's private label credit card program was extended.
August 2014: Capital One Settles Class Action Lawsuit
In August 2014, Capital One and three collection agencies agreed to pay $75.5 million to settle a class action lawsuit alleging they used an automated dialer to make calls to customers' cell phones without consent, a violation of the Telephone Consumer Protection Act of 1991.
October 2014: Capital One Acquires Adaptive Path
Expanding its focus on user experience, Capital One acquired Adaptive Path, a San Francisco-based user experience and digital design consultancy, in October 2014.
2014: Capital One Exits Check-Cashing Business
Capital One decided to exit the check-cashing business in 2014.
2014: Capital One Amends Terms of Use
In 2014, Capital One amended its terms of use, giving them broad authority to contact customers in any way they chose. This included methods like home visits, workplace visits, and manipulating caller ID. They defended these changes by stating that personal visits would only be a last resort for repossessing vehicles and that caller ID modifications were necessary due to technical limitations beyond their control.
2014: Capital One Bowl Ends Sponsorship
After over a decade, Capital One ended its sponsorship of the college football Florida Citrus Bowl, known as the Capital One Bowl from 2003 to 2014. The annual mascot challenge associated with the sponsorship also came to an end.
January 2015: Capital One Acquires Level Money
Capital One acquired Level Money in January 2015, a budgeting app designed for consumers, as part of their strategy to offer digital financial tools.
July 2015: Capital One Acquires Monsoon
Capital One acquired Monsoon, a multi-faceted company offering design, development, marketing, and consulting services, in July 2015, further bolstering their capabilities in digital services.
2015: Capital One Closes Branch Locations
Capital One closed multiple branch locations in 2015, reducing their presence in the D.C. metro area to 174 operating branches, reflecting a shift towards digital banking.
2015: Capital One Becomes Title Sponsor of Orange Bowl
Continuing its involvement in college football, Capital One became the title sponsor of the prestigious Orange Bowl in 2015, further increasing its visibility in the sports world.
2015: Capital One Bowl Renamed Buffalo Wild Wings Citrus Bowl
Following the end of Capital One's sponsorship, the Capital One Bowl was renamed the Buffalo Wild Wings Citrus Bowl in 2015.
2015: Capital One Acquires GE Healthcare Financial Services
In 2015, Capital One significantly expanded its lending portfolio by acquiring General Electric's Healthcare Financial Services unit for $9 billion. This deal gave them control of $8.5 billion in loans to healthcare businesses.
2015: Capital One Under Federal Investigation
In 2015, news broke that Capital One was the subject of a federal investigation for potential bank fraud, money laundering, and racketeering. No specific details were provided, and government investigators would only confirm the bank was being scrutinized for "unspecified charges."
September 2016: Paige Thompson's Employment at Amazon Ends
Paige Thompson's tenure at Amazon concluded in September 2016.
October 2016: Capital One Acquires Paribus
Capital One acquired Paribus in October 2016, a price tracking service, for an undisclosed amount. This acquisition aligns with their strategy of offering value-added services to customers.
2016: Capital One Ends EFL Cup Sponsorship
Capital One's sponsorship of the EFL Cup, an English soccer knockout tournament, concluded in 2016.
2016: Capital One Sells Stake in ClearXchange
In 2016, Capital One sold its ownership in ClearXchange to Early Warning.
November 7, 2017: Capital One Exits Mortgage Origination Business
Citing a highly competitive mortgage market and a low-interest-rate environment, Capital One decided to exit the mortgage origination business on November 7, 2017. This strategic decision resulted in the layoff of 1,100 employees.
November 2017: Capital One Announces Exit from Mortgage Market
In November 2017, Sanjiv Yajnik, Capital One's President of Financial Services, announced that the company would exit the mortgage origination business. This decision was attributed to the challenging market conditions and the difficulty of generating profits in that sector.
2017: Capital One Sponsors Capital One Arena
In 2017, Capital One secured the naming rights to the Capital One Arena in Washington D.C., a multi-purpose indoor arena that hosts a variety of events.
May 2018: Capital One Acquires Confyrm
Capital One acquired Confyrm in May 2018, a company specializing in digital identity and fraud alert services. This acquisition aimed to enhance Capital One's security measures and protect customers from fraud.
November 2018: Capital One Acquires Wikibuy
Capital One acquired Wikibuy, a shopping comparison app and browser extension, from an Austin-based startup in November 2018. Wikibuy, which has no affiliation with Wikipedia or Wikimedia, was rebranded as Capital One Shopping and continues to operate as a separate service.
2018: Capital One Fined $100 Million for Money Laundering Violations
Capital One received a $100 million fine in 2018 for failing to prevent money laundering. The charges included failure to file suspicious activity reports and deficiencies in risk assessment and remote deposit capture. These failures compromised national bank security controls. The fine stemmed from a larger investigation into funds being moved illegally from the US to offshore havens.
2018: Capital One Celebrates the Washington Capitals
In 2018, Capital One showed their support for the Washington Capitals by temporarily changing their logo. The word "Capital" in their logo was replaced with the Capitals' titular logo, sans the plural "s".
July 2019: Capital One Faces Criticism for Breach Response
Capital One's handling of the July 2019 data breach faced public criticism. Many customers learned about the incident through media reports, not from the bank itself. The company's initial press release, which claimed no bank account or Social Security numbers were compromised, was contradicted by the actual number of accounts affected, drawing further scrutiny and ridicule.
July 2019: Capital One Partners with Walmart
In a significant deal in July 2019, Capital One secured the contract to manage Walmart's private-label and co-branded credit card programs, a deal previously held by Synchrony Financial.
July 17, 2019: Capital One Becomes Aware of Data Breach
Capital One learned of the data breach on July 17, 2019.
July 29, 2019: Capital One Discloses Massive Data Breach
On July 29, 2019, Capital One revealed a significant data breach, impacting 106 million individuals in the US and Canada. The breach, perpetrated by a former Amazon Web Services software engineer, exposed sensitive information such as Social Security numbers and bank account details. Capital One offered free credit monitoring and identity theft protection to affected customers.
August 6, 2020: Federal Reserve Issues Cease and Desist Order Against Capital One
On August 6, 2020, the Federal Reserve Board of Governors issued a cease and desist order against Capital One. This was in response to the 2019 data breach and required Capital One to make significant improvements in its governance, risk management, and compliance practices.
January 2021: Capital One Fined $390 Million for Anti-Money Laundering Failures
January 2021 saw Capital One receive a $390 million fine from FINCEN due to failures in anti-money laundering controls. This pertained to a defunct portfolio of check-cashing businesses acquired around 2008 and later divested in 2014. Capital One admitted to failing to report thousands of suspicious activities and neglecting to file reports for approximately 50,000 cash transactions, totaling about $16 billion.
November 2021: Capital One Launches Venture X Credit Card
Capital One launched Venture X, a new travel rewards credit card, in November 2021. This premium card came with a $395 annual fee and targeted the growing travel rewards market.
2022: Capital One Venture X Sponsors Rose Bowl Game
Capital One Venture X became the presenting sponsor of the Rose Bowl Game in 2022, aligning the travel rewards credit card with a prominent sporting event.
2022: Capital One's Naming Rights to Maryland Stadium End
Capital One's naming rights agreement for the University of Maryland Terrapins football stadium came to an end in 2022. The stadium, previously known as Capital One Field at Maryland Stadium, reverted to its former name.
2022: Capital One Partners with Major League Baseball
In 2022, Capital One became the official bank and credit card of Major League Baseball. They also became the presenting sponsor of the World Series.
2022: Paige Thompson Convicted and Sentenced
In 2022, Paige Thompson was found guilty of seven charges related to the Capital One data breach. She was sentenced to time served, five years probation, 50 hours of community service, restricted to her home, location monitoring for three years, and federal monitoring of her computer and internet usage.
December 31, 2022: Largest Bank Status
As of December 31, 2022, Capital One is the 12th largest bank in the United States by total assets.
2023: Federal Reserve Ends Enforcement Action Against Capital One
The Federal Reserve concluded its enforcement action against Capital One in 2023.
February 2024: Capital One to Acquire Discover Financial
In February 2024, Capital One announced a major deal to acquire Discover Financial for $35.3 billion in stock. If approved by regulators, this merger would create the largest credit card issuer in the United States. The proposed acquisition signifies consolidation in the financial services industry and has been met with positive responses from figures like Jamie Dimon, CEO of JPMorgan Chase.