Breaking News: Ing

poppy10_2

harry_w

The Dutch scheme differs from the British part-nationalisation:

ING Gets $13.4 Billion Injection From the Netherlands (Update2)
By Martijn van der Starre and Joram Kanner

Oct. 19 (Bloomberg) -- ING Groep NV, the biggest Dutch financial-services firm, will get 10 billion euros ($13.4 billion) from the Netherlands after warning Oct. 17 of its first quarterly loss and falling the most in Amsterdam trading since 1991.

ING will scrap this year's final dividend and sell the government non-voting preferred securities that won't dilute existing shareholders and will lift the bank's core Tier 1 capital to about 8 percent, the Amsterdam-based company said today in a statement. The securities pay 8.5 percent annual interest, Dutch Finance Minister Wouter Bos told reporters today.

ING, which fell a record 27 percent after saying it will post a loss of 500 million euros in the third quarter, is the first to draw on the 20 billion euros that the Dutch government made available to financial firms on Oct. 10. While the government will appointment two representatives to ING's board, have a say in executive compensation and get a share of company profit, ING hasn't been nationalized, Chief Executive Officer Michel Tilmant told reporters today.

``It's always a shame and negative if measures like these are necessary,'' said Jan Maarten Slagter, director at The Hague-based investor group VEB, who said he's still studying the transaction.

``Profit, if any, will be distributed among more parties, so there will be dilution.''

Dutch government injects 13.4 billion dollars into ING
4 hours ago
AMSTERDAM (AFP) — The Dutch government announced Sunday that it would inject 10 billion euros (13.4 billion dollars) into ING, one of the world's 20 biggest banks, in the latest rescue global finance crisis rescue.

The move came two weeks after the government put 16.8 billion euros into the rescue of Dutch-Belgian bank Fortis.

"It is a large sum that we are injecting into a healthy business and that is why we can look into the future with confidence," Dutch Finance Minister Wouter Bos told a press conference announcing the injection.
"The Dutch government realises that it is an unusual intervention into the banking system," he said. "The government has said that it would exclude no measure to protect savers."

The accord between ING, which manages about 630 billion euros of assets, the finance ministry and the Netherlands central bank came after ING on Friday announced that it expected a 500-million-euro net loss in the third quarter because of the turmoil and asset depreciation.
Its share price fell 27.5 percent amid market rumours about difficulties at the bank.

Under the rescue, ING could be made to pay 150 percent of the amount put into the company, or after three years transform the figure into shares.

All of the bank's top managers have given up their annual bonuses and if any leaves none will receive a payment of more than one year of their salary, the minister said.

Bos said on October 9 that his government would put 20 billion euros into the campaign against the financial crisis . It has already guaranteed 200 billion euros of inter-bank loans.

He indicated that more money was available if needed. "We never said that this sum was limited," he said.

The government will earn a minimum of 8.5 percent interest out of any dividends awarded by the bank, Bos said. The figure could go as high as 25 percent.

"The injection will strengthen ING. Market conditions have changed, the market is going through turbulence and we accept the consequences," said the bank's chairman Michel Tilmant.
"We are delighted with the state aid," he said.

ING says it has 85 million customers and 130,000 staff around the world, making one of the top 20 banks in the global rankings.
It was a pioneer in "direct banking" -- the use of telephones and the Internet to control bank accounts.

The bank said it had a turnover of 76.6 billion euros in 2007 and net profit of 9.24 billion euros...

Money_Grabber13579

cwcw wrote: »

What seems to start with me? The thread? The run on ING Direct? The global financial crisis?

Well I'm sure we can blame the financial crisis on you if you want! Gordon alway's looking for somebody - would make a welcome change to the single track record which is always being played. "It's the tories fault," by the highly acclaimed chart bottomers, The Labour Party!

Actually what I was talking about was the fact that all your family seem to have started withdrawing already. Bit hasty don't you think, if its just for the sake of moving money? (Obviously, I wouldn't want to tell you what to do with your money, but I think telling everyone that will only cause others to do the same.)

KorkyKat

Oldmanofthesea

"Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps."

Heading toward Davy Jones locker are we?

Insert moron icon.

Money_Grabber13579

KorkyKat wrote: »

Oldmanofthesea

"Pls be nice to all MoneySavers. There's no such thing as a stupid question, and even if you disagree courtesy helps."

Heading toward Davy Jones locker are we?

Insert moron icon.

And what? You think writing DYING in huge letters is helpful?

Money_Grabber13579

oldmanof_the_sea wrote: »

Cretin alert 4

Would that not be 5?:D

cwcw

Money_Grabber13579 wrote: »

Well I'm sure we can blame the financial crisis on you if you want! Gordon alway's looking for somebody - would make a welcome change to the single track record which is always being played. "It's the tories fault," by the highly acclaimed chart bottomers, The Labour Party!

Actually what I was talking about was the fact that all your family seem to have started withdrawing already. Bit hasty don't you think, if its just for the sake of moving money? (Obviously, I wouldn't want to tell you what to do with your money, but I think telling everyone that will only cause others to do the same.)

After my Icesave experience, I'm especially cautious towards the banks that aren't 100% FSCS. My lifesavings are currently in limbo and it's an awful experience. I don't want anyone to have to go through the same thing, so I alerted relatives to the ING situation. I didn't tell them to withdraw but they took the choice. I don't think ING will collapse because it's too big, but time will tell.

Good luck and best wishes to all with savings in ING.

KorkyKat

Money_Grabber13579. Methinks you have the Dying post confused with me.

Apology accepted.

Joe65_2

qamwc1 wrote: »

The Gordon Brown plan is to capitalise the banks to withstand the current problems. The other governments have bought into that plan. The plan is bad news for shareholders as it dilutes their shareholdings and dividends dry up - hence the fall in the share price. It's good news for other stakeholders (including savers).

Gordon's only contribution has been to galvanise the rest of the worlds leadership out of their collective 'caught in the headlights' stare, with his envangelising about spend, spend, spending their way out of the problem.
That's his answer to the gathering recession too. At last all this fiscal prudence inhereted from the previous administration can be cast aside, in favour of what comes naturally. He's even got the American's at it. That's an 'elluva'n achievement for a has been chancellor

donnykebab

oldmanof_the_sea wrote: »

KorkyKat
I don't recall answering a stupid question so far. I do recall responding to some moronic statements. :T

I suspect stupid questions would be a touch beyond your scope at this point.
Concentrate on counting to 5 first and try and move on from there.