The Federal Reserve Board will likely decide the fate of the proposed Capital One deal for ING Direct when it convenes on Wednesday.

The $9 billion deal will create a bank with 1.5 percent of total U.S. deposits. As of now anyway, it does not own strong operations outside of core commercial banking, most of it at the retail level. The Fed has already held three hearings on the deal, which generated a surprising amount of opposition. Various consumer advocacy groups--notably the National Community Reinvestment Coalition--have opposed the deal largely on systemic risk concerns.

The Independent Community Bankers of America, in opposing the deal, has asked the Fed to delay approval of any deal involving banks with more than $100 billion in assets until the Dodd-Frank systemic risk provisions have been finally hammered out.

To be sure, most expect the deal to go forward, including Capital One executives. The bank has promised to invest $180 billion over 10 years in low-and moderate-income communities. They have also said the deal will create jobs in Delaware, where ING Direct is based, and in other areas.

For more:
- here’s some news on the Fed meeting from Deal Journal

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