Community banks oppose capital One Financial Inc.'s proposed $9 billion acquisition of ING Direct USA, saying it would increase systemic risk. "Not only are the large banks getting larger, their funding advantage over community banks, which has been estimated to be approximately 50 basis points, appears to be getting even larger," said Christopher Cole, senior vice president and senior regulatory counsel for the Independent Community Bankers of America, testifying at the first of three public hearings by the Federal Reserve on the deal.

If the Fed approves the acquisition, it would add to the number of potentially too-big-to-fail banks that could be bailed out if there was another financial crisis, said Cole.

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