Capital One to Close Mortgage Unit

Capital One Financial (NYSE:COF) shuts down wholesale mortgage unit and expects a charge of $2.00 plus against earnings. At this rate there won’t be any mortgage originators other than the large banks that can originate and hold onto the loans as assets on their balance. COF has traded as low as $64.6 in after hours trading.

We see the large money center banks, JPM, C, BAC, Wells Fargo to surge once the subprime capital contraction is resolved.

Article on Capital One, http://biz.yahoo.com/ap/070820/capital_one_financial_wholesale_mortgages.html?.v=2