Capital One Financial Corp. does not expect to receive regulatory approval on its application for its Cabela's credit card portfolio purchase, according to comments made by Chairman, President and CEO Richard Fairbank during the bank's fourth-quarter 2016 earnings call Jan. 24.
Within the next week, the bank expects to either withdraw the bank merger application for the credit card operations from World's Foremost Bank, or have the application denied by the OCC. He said that, normally, a bank would withdraw its application before the regulator could deny it, but Fairbank said the purchase is unique because the bank deal is tied up in the acquisition of Cabela's by Bass Pro Shops and requires Capital One to get consent from Cabela's to withdraw. The $200 million deal included $5.2 billion in credit card receivables and other assets and $5 billion in associated funding liabilities.
The bank is also not in a position to refile its merger application until after it completes its work under its anti-money laundering consent order.
"We remain committed to this deal and we will continue to work with Cabela's and Bass Pro Shop toward completing the transaction," he said.