Capital One 2014 Annual Report Download - page 146

Subprime: For purposes of lending in our Credit Card business we generally consider FICO scores of 660 or below,
or other equivalent risk scores, to be subprime. For purposes of auto lending in our Consumer Banking business we
generally consider borrowers FICO scores of 620 or below to be subprime.
Tangible common equity (“TCE”): Common equity less goodwill and intangible assets adjusted for deferred tax
liabilities associated with non-tax deductible intangible assets and tax deductible goodwill.
Tier 1 Common Capital: Tier 1 capital less preferred stock, qualifying trust preferred securities, hybrid securities
and qualifying noncontrolling interest in subsidiaries under Basel I.
Troubled debt restructuring (“TDR”): A TDR is deemed to occur when the Company modifies the contractual
terms of a loan agreement by granting a concession to a borrower that is experiencing financial difficulty.
U.S. federal banking agencies: The Federal Reserve, the OCC and the FDIC.
U.S. GAAP: Accounting principles generally accepted in the United States of America. Accounting rules and
conventions defining acceptable practices in preparing financial statements in the U.S.
Unfunded commitments: Legally binding agreements to provide a defined level of financing until a specified future
date.
Variable Interest Entity (“VIE”): An entity that: (1) lacks enough equity investment at risk to permit the entity to
finance its activities without additional financial support from other parties; (2) has equity owners that lack the right
to make significant decisions affecting the entity’s operations; and/or (3) has equity owners that do not have an
obligation to absorb or the right to receive the entity’s losses or return.
Volker Rule: A final rule implementing Section 619 of the Dodd-Frank Act that contains prohibitions on proprietary
trading and certain investments in, and relationships with, covered funds (hedge funds, private equity funds, and
similar funds).
Acronyms
ABS: Asset-backed security
AOCI: Accumulated other comprehensive income
ARM: Adjustable rate mortgage
ASC: Accounting Standard Codification
BHC: Bank holding company
bps: Basis points
CAD: Canadian Dollar
CCAR: Comprehensive Capital Analysis and Review
CDE: Community development entities
CFPB: Consumer Financial Protection Bureau
CFTC: Commodity Futures Trading Commission
CMBS: Commercial mortgage-backed securities
COEP: Capital One (Europe) plc
COF: Capital One Financial Corporation
COSO: Committee of Sponsoring Organizations of the Treadway Commission
CRA: Community Reinvestment Act
DUS: Delegated Underwriting and Servicing
Fannie Mae: Federal National Mortgage Association
FASB: Financial Accounting Standards Board
FCA: U.K. Financial Conduct Authority
124 Capital One Financial Corporation (COF)