Banking News Kaupthing Edge And Heritable Buyer ING To Get 10billion Bail Out 2377
Kaupthing Edge and Heritable buyer ING to get €10billion bail-out
20 October 2008 / by Rachael Stiles
ING’s share price plunged 27 per cent after it revealed it expects to make losses of €500million for the third quarter; it will receive the €10billion as part of the Dutch Government’s €20billion pledge, made earlier this month, to make capital available to financial enterprises that are fundamentally sound and viable, to boost confidence and stability in the Dutch economy.
Michel Tilmant, CEO of ING, stressed that the injection of cash is to strengthen the capital position of the bank, and not because it is in serious trouble. “Our capital position was in line with previously targeted levels and regulatory requirements.” Mr Tilmant said.
“However, market conditions have changed dramatically in recent weeks and have led to an internationally recognised belief that going forward, in this market environment, capital requirements for financial institutions should be higher.”
With 85 million private, corporate, and institutional clients in more than 50 countries, ING is the Netherlands’ biggest bank and one of the world’s top 20 banks. Its UK savings arm, ING Direct, is set to take on the savings account customers of collapsed Icelandic banks Kaupthing Edge and Heritable Bank.
There are about one million customers in the UK with ING Direct savings accounts, which often top ‘best buy’ tables with their competitive interest rates.