Capital One 2014 Annual Report Download - page 143

Final Basel III Capital Rules: The Board of Governors of the Federal Reserve System, the Federal Deposit
Insurance Corporation, and the Office of the Comptroller of the Currency issued a rule implementing the Basel III
capital framework developed by the Basel Committee on Banking Supervision as well as certain Dodd-Frank Act
and other capital provisions.
Final LCR Rule: The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance
Corporation, and the Office of the Comptroller of the Currency issued final rules implementing the Basel III liquidity
coverage ratio in the United States. The Final LCR Rule will require the Company and each of the Banks to hold an
amount of eligible high-quality, liquid assets that equals or exceeds 100% of their respective projected net cash
outflows over a 30-day period, each as calculated in accordance with the Final LCR Rule
Final Rule: A new capital rule finalized by the Federal Reserve, the OCC and the FDIC (collectively, the U.S. federal
banking agencies) that implements the Basel III capital accord developed by the Basel Committee on Banking
Supervision and incorporates certain Dodd-Frank Act capital provisions and updates to the PCA capital requirements.
Foreign currency swaps: An agreement to exchange contractual amounts of one currency for another currency at
one or more future dates.
Foreign exchange contracts: Contracts that provide for the future receipt or delivery of foreign currency at
previously agreed-upon terms.
Forward rate agreements: Contracts to exchange payments on a specified future date, based on a market change
in interest rates from trade date to contract settlement date.
GreenPoint: Refers to our wholesale mortgage banking unit, GreenPoint Mortgage Funding, Inc. (“GreenPoint”),
which was closed in 2007.
GSE or Agency: A government-sponsored enterprise or agency is a financial services corporation created by the
United States Congress. Examples of U.S. government agencies include Federal National Mortgage Association
(Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Government National Mortgage
Association (Ginnie Mae) and the Federal Home Loan Banks.
Impairment: The condition when the carrying amount of an asset exceeds or is expected to exceed its fair value.
Impaired loans: A loan is considered impaired when, based on current information and events, it is probable that
we will not be able to collect all amounts due from the borrower in accordance with the original contractual terms
of the loan.
Inactive Insured Securitizations: Securitizations as to which the monoline bond insurers have not made repurchase
requests or loan file requests to one of our subsidiaries.
ING Direct acquisition: On February 17, 2012, we completed the acquisition of substantially all of the ING Direct
business in the United States (“ING Direct”) from ING Groep N.V., ING Bank N.V., ING Direct N.V. and ING
Direct Bancorp.
Insured Securitizations: Securitizations supported by bond insurance.
Interest rate sensitivity: The exposure to interest rate movements.
Interest rate swaps: Contracts in which a series of interest rate flows in a single currency are exchanged over a
prescribed period. Interest rate swaps are the most common type of derivative contract that we use in our
asset/liability management activities.
121 Capital One Financial Corporation (COF)