Capital One

Facts: world largest financial services franchises. It is a diversified financial services corporations, focused primarily on consumer lending. Principal segments include U.S. card vs auto finance, buying retail installment contracts secured by autos from dealer network through out U.S -1Q 07 eps 1.62 vs 2.86 one year earlier, below 2.01 estimate -driver: underperformance in the core lending business(card vs auto loan), excluding mortgage banking, debt sale and the liquidation of Dealer Track Holdings -morgage banking segment reported net loss of $12.6 mil as a result of lower gain-on-sales margins for Ala-A loans and lower origination volumes.