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Capital One Financial Corporation (stock quote: COF), through its subsidiaries, provides various financial products and services to consumers, small businesses, and commercial clients in the United States. It also provides consumer credit and debit card products, small business lending, installment loans, home loans, and other unsecured consumer financial services, as well as involves in financing for the purchase of new and used vehicles or other motor vehicles, and the refinancing for the existing motor vehicle loans. The company was founded in 1993 and is headquartered in McLean, Virginia.

Recently Capital One Bank had an amazing rally, driven by the Treasury Secretary Paulson, who bought 45 days ago 17 million shares for a stock price of 21.77. Now, as we can see in the following 3-month chart, the stock price has gone up until 34 dollars per share, quite a chance in these months…

This means that Paulson made 50% in some months, and it is more than possible that he already sold these shares. So now, what reason does Capital One has to continue its rally?

I would expect a rebound, but remember that some days ago, Capital One Financial Corporation (NYSE:COF) announced a quarterly dividend of $0.05 per share payable August 20, 2009 to stockholders of record as of August 11, 2009. The company has announced dividends every quarter since it became an independent company on February 28, 1995. Dividends declared by the company are eligible for direct reinvestment in the company’s common stock under its Dividend Reinvestment and Stock Purchase Plan.

All answers regarding this company will be made by the IR contact of COF, at investor.relations@capitalone.com

Judge refuses to approve settlement between SEC and Bank of America (BAC)

U.S. District Judge Jed Rakoff said it might be unfair to the public to accept a proposed settlement between the Securities and Exchange Commission and Bank of America. The $33 million settlement is related to the bank’s acquisition of Merrill Lynch. “Despite the public importance of this case, the proposed consent judgment would leave uncertain the truth of the very serious allegations made in the complaint,” Rakoff wrote, adding, “The proposed consent judgment in no way specifies the basis for the $33 million figure.” Rakoff scheduled a hearing Monday on the subject.

Two days before Bank of America’s shareholders voted to approve the takeover of Merrill Lynch, the latter’s loss projections increased by almost $2 billion. Bank of America executives concluded that the losses did not need to be publicly disclosed because they were not severe enough, according to internal e-mails and sources.

Lockhart resings as regulator for Freddie and Fannie Mae

James Lockhart, director of the U.S. Federal Housing Finance Agency, said he plans to leave the regulatory agency this month. “Everybody that was involved in the mortgage markets regrets that we didn’t see how bad things were going to get,” Lockhart said. Fannie Mae and Freddie Mac, which are supervised by the agency, recorded $150 billion in combined losses during Lockhart’s tenure and were ultimately seized by the government

Tommorrow, the US Government will become Citigroup’s (stock quote: C) largest shareholder, with a 34% holding. This news had a impact on the market, since Citi´s shares are currently rising 4%.

Reuters informed that the U.S. government will officially take a 34 percent equity stake in Citigroup Inc on Thursday, becoming the bank’s largest shareholder in connection with a February bailout.

The change follows the completion of two exchange offers designed to bolster the capital position of the nation’s third-largest bank, widely considered the most troubled of the biggest U.S. lenders.

Investors have agreed to swap $32.8 billion of preferred securities for common stock, and the government will swap $25 billion, the New York-based bank has said.

Citigroup conducted the offers after heavy credit losses and writedowns prompted a series of bailouts, including a $45 billion injection of taxpayer funds from the Troubled Asset Relief Program (TARP).

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You might be wondering about what happened to AIG shares. The answer is simple: the company decided to make a reverse stock split.

Following that measure, American International Group Inc (stock ticker: AIG) shares of this troubled insurer were down $4.53, or 19.5 percent, to $18.67 in early-afternoon trade on the New York Stock Exchange (NYSE).

The reverse split was approved at the AIG annual meeting on Tuesday. The shares closed at a pre-split $1.16 on Tuesday.

The only consequence of this reverse split is to seek some kind of psychological advantage, since the share price was too low, but what they were hoping for did not occur.

Before the split, the shares had traded below $2 for much of the year, weighed down by the company’s nearly $100 billion in losses last year and a taxpayer bailout that left the U.S. government owning a nearly 80% stake in the company.

The shares also fell sharply on Tuesday after Chief Executive Ed Liddy said at the annual meeting that he could not give any assurance that the shares would ever recover or that the U.S. government would ever relinquish its majority ownership of the company.

AIG disclosed its plans for the reverse stock split in a regulatory filing on May 21, but the news was overshadowed by an announcement that same day that Liddy planned to step down as CEO and chairman once successors were found. Read the rest of this entry »