Capital One loses in mortgage closure
CHARLOTTE, NORTH CAROLINA - The financial services company Capital One has reported third-quarter losses of $81.6 million, including after-tax charges of $883 million due to the closure of its wholesale mortgage unit, GreenPoint.
Capital One acquired GreenPoint, which specialised in jumbo loans above $417,000, last year when it acquired North Fork Bank for $13.2 billion. In the aftermath of the subprime crisis, GreenPoint has laid off 1,900 staff, in addition to over 2,000 job cuts announced in June by Capital One in a bid to reduce costs. Last year Capital One reported a third-quarter income of $587.8 million, reliant upon GreenPoint and Hibernia, which it purchased in 2005 for $4.9 billion, to transform it from a credit card and finance company into a larger banking institution with hundreds of branches.
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