Capital One in $3.5 mln settlement over auto loan losses

WASHINGTON, April 24 Wed Apr 24, 2013 2:22pm EDT

WASHINGTON, April 24 (Reuters) - Capital One Financial Corp agreed to pay $3.5 million to resolve securities regulators' charges that it understated losses from auto loans in the months leading up to the financial crisis, the Securities and Exchange Commission said on Wednesday.

The SEC said Capital One failed to properly account for losses in the second and third quarters of 2007.

The regulator said it also settled related charges against the bank's former chief risk officer Peter Schnall and former divisional credit officer David Lagassa.

The bank and its two executives neither admitted nor denied the findings, the SEC said.

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