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Capital One to buy Chevy Chase: WSJ

NEW YORK
Wed Dec 3, 2008 8:02pm EST

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NEW YORK (Reuters) - Capital One Financial Corp (COF.N) is set to buy Chevy Chase Bank, the Wall Street Journal reported on Wednesday.

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Capital One has offered $520 million in cash and stock for the Bethesda, Maryland-based bank, the newspaper reported.

McLean, Virginia-based Capital One expects Chevy Chase to have cumulative losses of about $1.75 billion on its $11.8 billion loan portfolio, the Wall Street Journal said, citing a person familiar with the situation.

A Capital One spokesman did not immediately comment and Chevy Chase executives could not be reached for comment.

Other bidders for Chevy Chase had included Citigroup Inc (C.N) and JPMorgan Chase & Co (JPM.N), sources told Reuters earlier this month.

U.S. banks are broadly looking to expand their branch networks and amass pools of low-cost retail deposits after seeing how unreliable funding through capital markets can be when times are tough.

(Reporting by Elinor Comlay; Editing by Phil Berlowitz)
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