Capital One 2008 Annual Report Download - page 63

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45
Capital Management:
The Companys TCE (tangible common equity / tangible managed assets) ratio is currently impacted by unrealized losses
associated with its investment portfolio. The Company does not anticipate that these unrealized losses would result in a
materially permanent reduction in capital given the low risk of principal loss and that it is unlikely that the Company will
need to liquidate securities prior to maturity for liquidity purposes as the Company has the intent and ability to hold the
securities until recovery, which may be maturity.
The Company expects the TCE ratio to decline by about 100 basis points with the close of the Chevy Chase Bank F.S.B.
acquisition.
The Company expects to maintain a strong TCE ratio in 2009. The TCE ratio is expected to remain below the long-term
target range of 5.5% to 6.0% in 2009. The Company expects regulatory capital ratios to remain comfortably above the
level required by regulators in 2009.
The Company will actively manage capital in conjunction with evolving views of the economy and portfolio trends. The
Company believes it will maintain adequate capital ratios.