Capital One 2007 Annual Report Download - page 105

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Interest-Bearing Deposits
As of December 31, 2007, the Company had $71.9 billion in interest-bearing deposits of which $10.0 billion represents large
denomination certificates of $100 thousand or more. As of December 31, 2006, the Company had $74.1 billion in interest-bearing
deposits of which $12.0 billion represents large denomination certificates of $100 thousand or more.
Senior and Subordinated Notes
The Senior and Subordinated Global Bank Note Program gives COB the ability to issue securities to both U.S. and non-U.S. lenders
and to raise funds in U.S. and foreign currencies. The Senior and Subordinated Global Bank Note Program had $3.2 billion
outstanding at December 31, 2007 and 2006. Prior to the establishment of the Senior and Subordinated Global Bank Note Program,
COB issued senior unsecured debt through its $8.0 billion Senior Domestic Bank Note Program, of which $168.0 million and $166.2
million was outstanding at December 31, 2007 and 2006, respectively. COB did not renew the Senior Domestic Bank Note Program
for future issuances following the establishment of the Senior and Subordinated Global Bank Note Program.
Prior to 2007, the Company issued senior and subordinated notes that as of December 31, 2007 had a par amount of $9.7 billion.
In September 2007, the Company issued $1.5 billion of 6.75% senior notes due September 15, 2017.
In December 2006, in connection with the North Fork acquisition, the Company assumed $150.0 million of 9.25% subordinated notes
due October 1, 2010, $350.0 million of 3.20% senior notes due June 6, 2008, $350.0 million of 5.875% fixed rate subordinated notes
due August 15, 2012 and $150.0 million of 5.00% fixed rate subordinated loans due August 15, 2012.
In September 2006, the Company issued $1.1 billion of floating rate senior notes due September 10, 2009 and $1.1 billion of 5.7%
senior notes due September 15, 2011.
In August 2006, the Company issued $1.0 billion aggregate principal amount of 6.150% subordinated notes due September 1, 2016.
Corporation Shelf Registration Statement
As of December 31, 2007, the Corporation had an effective shelf registration statement under which the Corporation from time to time
may offer and sell an indeterminate aggregate amount of senior or subordinated debt securities, preferred stock, depositary shares
representing preferred stock, common stock, trust preferred securities, junior subordinated debt securities, guarantees of trust preferred
securities and certain back-up obligations, purchase contracts and units. There is no limit under this shelf registration statement to the
amount or number of such securities that the Corporation may offer and sell. Under SEC rules, the Automatic Shelf Registration
Statement expires three years after filing. Accordingly, the Corporation must file a new Automatic Shelf Registration Statement at
least once every three years.
Other Borrowings
Secured Borrowings
COAF maintained twenty-three agreements to transfer pools of consumer loans accounted for as secured borrowings at December 31,
2007. The agreements were entered into between 2004 and 2007, relating to the transfers of pools of consumer loans totaling $31.6
billion. Principal payments on the borrowings are based on principal collections, net of losses, on the transferred consumer loans. The
secured borrowings accrue interest predominantly at fixed rates and mature between March 2008 and September 2011, or earlier
depending upon the repayment of the underlying consumer loans. At December 31, 2007 and 2006, $13.1 billion and $14.5 billion,
respectively, of the secured borrowings were outstanding.
Junior Subordinated Debentures
At December 31, 2007 and 2006, the Company had junior subordinated debentures outstanding with a par amount of $1.6 billion,
respectively.
The Company had previously established special purpose trusts for the purpose of issuing trust preferred securities. The proceeds from
such issuances, together with the proceeds of the related issuances of common securities of the trusts, were invested by the trusts in
junior subordinated deferrable interest debentures issued by Capital One Financial Corporation. Prior to FASB Interpretation No. 46R,
Consolidation of Variable Interest Entities (FIN 46R), these trusts were consolidated subsidiaries of the Company. As a result of the
adoption of FIN 46R, the Company deconsolidated all such special purpose trusts, as the Company is not considered to be the primary
beneficiary under this accounting standard.
During 2007, securities totaling $450.0 million were called or matured. In February 2007, the Company issued $500.0 million
aggregate principal amount of junior subordinated debentures that are scheduled to mature on February 17, 2037. The debentures bear
interest at a rate of 6.745% until February 17, 2032, at which time they become floating rate through to the scheduled maturity date.
In December 2006, in connection with the North Fork acquisition, the Company assumed $100.0 million of 8.70% junior subordinated
debentures due December 15, 2026 and $200.0 million of 9.10% junior subordinated debentures due June 1, 2027. These junior
subordinated debentures were called during 2007, as noted above, resulting in a $17.4 million gain. In addition, the Company assumed