Before the financial crisis, Capital One's proposed deal to buy INGs' U.S. online banking operations for $9 billion would likely have sailed through with a minimum of controversy. But now that the world has changed and too-big-to-fail remains foremost in the regulatory mindset, it has become a bellwether deal--one that all are watching closely.

The Federal Reserve Board has decided the deal merits a hearing, one that will likely prove very interesting. The fact is that the deal will create the fifth largest U.S. consumer bank, and you have to wonder about the consequences. Capital One has good point when it notes that it is not combining bank that engages in a lot of risky trading activity with a consumer bank. This is a big difference from a Capital One than a Goldman Sachs or Morgan Stanley. Still, this is great opportunity for the Fed to weigh in on issues that are critical in terms of transparency and oversight and assurances for the public.

The moment is ripe for the Fed to address too-big-to-fail and what, if anything, it means to be a systemically important financial institution. All that said, I do think the deal will sail through, though Capital One needs to be prepared to do the right things when it comes to community reinvestment.

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