Regulators on Tuesday approved Capital One’s $9 billion acquisition of ING Direct USA, casting aside criticism that the deal would create the next too-big-too-fail banking behemoth.

The deal provides the first glimpse at how the government will use its new powers to oversee bank mergers, authority granted in the aftermath of the financial crisis.

The Federal Reserve’s consent came with some conditions. Citing consumer complaints and legal actions against the bank, the Fed ordered Capital One to revamp its internal controls.

Some had predicted that the Fed would rubber-stamp the deal. But the central bank was deliberate in its approach, delaying approval to hold public hearings and twice postponing plans to announce the fate of the acquisition.

In the end, the Fed was unconvinced that the union of two midsize players would cause the next Wall Street crisis.