Date
30 March 2017
Chief executive Richard Fairbank has expanded the credit card consulting firm he founded more than two decades ago into the seventh largest commercial bank in the US. Photo: Internet
Chief executive Richard Fairbank has expanded the credit card consulting firm he founded more than two decades ago into the seventh largest commercial bank in the US. Photo: Internet

Capital One bags GE healthcare lender in US$9 bln deal

Capital One Financial Corp. is buying the healthcare finance unit of General Electric Co. for about US$9 billion.

The deal includes US$8.5 billion of healthcare-related loans, according to Bloomberg.

GE’s Healthcare Financial Services unit provides mortgages and loans to companies including nursing homes.

The sale comes as GE continues to offload its finance business.

Capital One chief executive Richard Fairbank has been grown the credit card consulting firm he founded more than two decades ago into the seventh largest commercial bank in the US.

“This addition will catapult us to a leading market position in providing financial services to the health-care sector,” Michael Slocum, president of Capital One’s commercial bank, said in its statement.

The deal ranks among Capital One’s largest since the 2008 financial crisis.

The McLean, Virginia-based company bought ING Direct USA for about US$9 billion in 2012, building its deposit-taking bank into one of the largest online lenders in the nation.

Capital One will retain the healthcare lender’s employees and management team including President Darren Alcus.

Loans to that industry make up about 5 percent of Capital One’s commercial loans, according to company filings.

GE chief executive Jeffrey Immelt is ramping up divestment of about US$200 billion of GE Capital assets to focus on manufacturing.

The banking operations imperiled the parent company during the 2008 financial crisis.

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