Capital One 2012 Annual Report Download - page 51

The Soundness of Other Financial Institutions Could Adversely Affect Us.
Our ability to engage in routine funding and other transactions could be adversely affected by the stability and
actions of other financial services institutions. Financial services institutions are interrelated as a result of trading,
clearing, servicing, counterparty and other relationships. With our recent ING Direct and 2012 U.S. card
acquisitions, we have increased exposure to financial institutions and counterparties. These counterparties
include institutions and counterparties that may be exposed to various risks over which we have little or no
control, including European or U.S. sovereign debt that is currently or may become in the future subject to
significant price pressure, rating agency downgrade or default risk.
In addition, we routinely execute transactions with counterparties in the financial services industry, including
brokers and dealers, commercial banks, investment banks, mutual and hedge funds and other institutional clients,
resulting in a significant credit concentration with respect to the financial services industry overall. As a result,
defaults by, or even rumors or questions about, one or more financial services institutions, or the financial
services industry generally, have led to market-wide liquidity problems and could lead to losses or defaults by us
or by other institutions.
Likewise, adverse developments affecting the overall strength and soundness of our competitors, the financial
services industry as a whole and the general economic climate or sovereign debt could have a negative impact on
perceptions about the strength and soundness of our business even if we are not subject to the same adverse
developments. In addition, adverse developments with respect to third parties with whom we have important
relationships also could negatively impact perceptions about us. These perceptions about us could cause our
business to be negatively affected and exacerbate the other risks that we face.
Item 1B. Unresolved Staff Comments
None.
Item 2. Properties
Our corporate and banking real estate portfolio consists of a combined total of approximately 15.6 million square
feet of owned or leased office and retail space, used to support our business segments. Of this overall portfolio,
approximately 9.9 million square feet of space are dedicated for various corporate office uses (with an additional
824,000 square feet currently under construction in Virginia and Texas) and approximately 5.7 million square
feet of space are for bank branches and related offices.
Our 9.9 million square feet of corporate office space consists of approximately 5.4 million square feet of leased
space and 4.5 million square feet of owned space and such corporate office space is located in Virginia, Texas,
Maryland, New York, Louisiana, Florida, Washington, and Delaware and various other locations, and includes
the following owned corporate campuses:
• McLean, Virginia: Approximately 587,000 square foot headquarters building housing our executive offices
and northern Virginia staff.
• Goochland County, Virginia: Approximately 316 acres of land, which contains approximately 1.2 million
square feet of office space to house various business and staff groups.
• Plano, Texas: Approximately 139 acres of land, which contains approximately 678,000 square feet of office
space to support various staff groups, including our auto finance and home loan businesses.
• Glen Allen, Virginia: Approximately 453,000 square feet of office space to house various business and staff
groups.
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