After a report concerning questionable executive compensation payouts an investigation on behalf of current long term investors in Capital One Financial Corp. (NYSE:COF) over potential breaches of fiduciary duty related to the historical and potential compensation that was awarded certain senior officers and executives of Capital One Financial Corp. was announced.

Kenneth R. Feinberg, the Obama administrations special master for executive compensation, reviewed over the past five months compensations paid to the 25 highest earners of 419 banks between October 2008, when the first US Troubled Asset Relief Program funds were dispensed, and February 2009, when the stimulus bill took effect. Kenneth Feinberg said he immediately excluded most of the 419 companies from his examination because they said they didn't pay any executives more than $500,000, but he wound up citing 17 banks for making troublesome payments. 11 of the 17 banks making troublesome payments have already repaid the government for money they borrowed under TARP.

Mr. Feinberg determined that banks paid out $1.6 billion in unwarranted bonuses, retention awards, stock grants and 'golden parachute' retirement packages to their top earners at the height of the financial crisis.

Capital One Financial Corporation, the diversified financial services company, whose banking and non-banking subsidiaries market a variety of financial products and services, located in McLean, VA, is among the 17 companies. Another of the other 16 companies was Citigroup, which was reportedly identified for having the most egregious compensation packages, according to government officials with knowledge of Mr. Feinbergs report. Citigroup reportedly handed out several hundred million dollars in pay in 2008 as it neared collapse. Nearly two-thirds of the payouts amount to Andrew J. Hall, owner of a nearly 1000 year old German Medieval Castle, who reportedly received a payout of more than $100 million in connection with spin-off of Citigroups Phibro energy trading unit for $370 million to Occidental Petroleum in 2009.

In most cases the banks told Feinberg that they were obligated by employment contracts to pay the bonuses and other compensation, but Kenneth R. Feinberg said to reporters that those 17 companies exercised 'poor judgment' for making the $1.6 billion in 'ill-advised payments' to their top paid employees shortly after accepting TARP funds from the federal government. 'They shouldn't have made these payments,'' Feinberg told reporters. 'They were ill-advised. They were troublesome.'

According to the investigation by a law firm the investigation on behalf of current long term investors in the Capital One Financial Corp. (NYSE:COF) stock focuses, among other things, on possible shareholder claims that certain of the Capital One Financials senior officers were unjustly enriched through their receipt of unwarranted, excessive or unearned compensation in past years. Certain senior officers and executives at the Capital One Financial Corp. were awarded salaries, bonuses, stock options and other forms of long-term, incentive or retirement compensation that were, so the investigation, excessive or unwarranted based on the Capital One Financials performance as compared to what senior officers at comparable companies were making and/or results that were fraudulent, misleading or not long-lasting.

Mr. Richard D. Fairbank, founded Capital One with Nigel Morris in 1988, is Chairman of the Board, President, Chief Executive Officer of Capital One Financial Corporation. Richard D Fairbank ranked number 1 among CEO Compensation In 2006. In 2008 Capital One Financial received roughly $3.6billion TARP funds. While CEO of Capital One Financial in 2009, Richard D. Fairbank earned a total compensation of $6,076,805 and a 5year total compensation of $342.13million. In 2009 Capital One Financial repaid the $3.6billion TARP funds.

The investigation by the law firm focuses on claims that the prior compensation awarded at the Capital One Financial Corp. (Public, NYSE:COF) is now clearly improper based upon its current operating condition.

While Capital One Financial Corp. reported in 2007 a Net Income of $1.57033billion, it had to report a Net Loss of $46.00million in 2008. Shares of Capital One Financial Corp. (COF) traded in 2007 as high as $82 per share, but lost 50% of its value in 2008, where COF traded as low as $39.68 per share. COF shares traded in 2009 as low as $8.31 per share, but recovered to its 2008 low and traded recently at $40.60 per share.

Finally and most importantly the investigation focuses also on possible claims that would allow Capital One Financial Corp. (NYSE:COF) stockholders to influence or control future compensation decisions at the Capital One Financial Corporation.

Within the industry huge amounts have been allocated for payout and bonus. Goldman Sachs is reportedly paying out an average of $544,000 per worker, though many could earn several times that amount, JP Morgan Chase on average pays about $400,000, and Morgan Stanley pays about $262,000. Morgan Stanley reportedly put aside $8.3 billion for pay and benefits during the first half of 2010, 44% more than during the same period last year. Goldman Sachs put aside $3.8 billion for pay and benefits in the second quarter equivalent to 43% of total quarterly revenue in addition to $5.5 billion in the first three months.