• The New York Times, Tuesday, July 10, 2007 11:45 AM

Capital One CEO Richard D. Fairbank--a recreational hockey player--is fond of the Wayne Gretzky quote about skating to where the puck will be. As a founder of Capital One, he helped transform the credit card industry with innovations like teaser rates and zero-interest balance transfers. Now, he's moving into retail banking.

Two years ago, Capital One did not have a single branch. Today, with the purchase of Hibernia National Bank and North Fork Bank in quick succession, it has 720 locations in five states. In the future foreseen by Fairbank, lending is national but branch operations are local. To create this banking hybrid, he plans to pull out the best elements of all three companies; then, reassemble the parts.

But the challenge of digesting two banks at once has caused the company to move at an unusually slow pace. John A. Kanas, the former CEO of North Fork, said he would step down as head of Capital One's retail bank and resign from its board in August. Lynn Pike, Capital One Financial's COO, will become president of banking somewhat earlier than expected.

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