Capital One 2006 Annual Report Download - page 132

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114
unless such repurchases or redemption are made from the proceeds of the sale of specified securities with equity-like
characteristics.
Share buy-back program
On January 25, 2007 the Companys Board of Directors approved the repurchase of up to $3.0 billion of the Companys
Common Stock, beginning in the second quarter of 2007 and continuing through the second quarter of 2008. The repurchased
shares will be accounted for as treasury shares and may be used for general corporate purposes. Repurchases will be made
through open market or privately negotiated transactions from time to time at prevailing market prices. Repurchases under
the program will be made in compliance with Rule 10b-18 of the Securities and Exchange act of 1934 (as applicable) and
other applicable securities laws.
Sale of Mortgage loans held for sale
During the fourth quarter, the Company entered agreements and established the price with third parties to sell $1.5 billion of
CONAs residential mortgage portfolio and $4.2 billion of North Fork Banks mortgage portfolio as part of a balance sheet
downsizing related to the acquisition of North Fork. In December 2006, $0.2 billion of loans were sold resulting in a loss of
$9.2 million. Settlement of the remaining transactions of $5.5 billion are expected to occur during Q1 2007.