FDIC Sues Capital One Over Special Assessment Charges Dispute

Core Viewpoint - The FDIC has filed a lawsuit against Capital One, claiming the bank underpaid by approximately $100 million in special assessments related to the failures of Silicon Valley Bank and Signature Bank in 2023 [1] Group 1: Lawsuit Details - The FDIC alleges that Capital One understated its uninsured deposits by excluding a $56 billion position between two subsidiaries from its regulatory filings [3] - The omission led to Capital One calculating its special assessment at $324.84 million instead of the correct amount of $474.08 million, leaving an outstanding balance of roughly $99.4 million [4] - This lawsuit follows Capital One's own legal action against the FDIC, accusing the agency of overcharging it by $149.2 million [5] Group 2: Capital One's Legal Challenges - The lawsuit adds to Capital One's existing legal issues, including a proposed rejection by 18 U.S. states of a $425 million settlement deal related to deceptive practices in its online banking [6] - Additionally, the New York Attorney General has filed a lawsuit against Capital One's Zelle app, alleging it failed to implement necessary safety measures, resulting in over $1 billion in consumer fraud [7] Group 3: Financial Performance - Over the past six months, Capital One's shares have increased by 2.1%, while the industry has seen a growth of 24.3% [8] - Capital One currently holds a Zacks Rank of 3 (Hold) [10]