ING to be broken up in wake of bail-out

ING, the Dutch financial services group, announced on the 26 October 2009 that it would sell its insurance and investment management businesses to focus solely on banking in a move prompted by intense pressure from the European Commission over state aid.

It is a development that will resonate in the boardrooms of other banks that benefited from similar state support, notably Royal Bank of Scotland, Lloyds Banking Group and Northern Rock, in the UK; and Dexia and KBC, the Belgian banks.

Under EU competition rules, those companies that receive state aid have six months to submit a restructuring plan detailing how they will reduce their activity to limit market distortions caused by taxpayers' support.

EurActiv, 27.10.09: EU crackdown on big banks starts with ING http://www.euractiv.com/euro-finance/eu-crackdown-big-banks-starts-in-news-222819

ING: Press Release, 26.10.09: ING to separate banking and insurance operations http://www.ing.com/group/showdoc.jsp?docid=417610_EN&menopt=prm|pre|apr|009

ESO: Background information: Payback time http://www.europeansources.info/record/payback-time/

ESO: Background information: Brussels' ING concerns dismissed http://www.europeansources.info/record/brussels-ing-concerns-dismissed/

BBC News, 26.10.09: ING to divide and repay state aid http://news.bbc.co.uk/1/hi/business/8325400.stm

NRC Handelsblad, 26.10.09: ING to split banking and insurance http://www.nrc.nl/international/article2396903.ece/ING_to_split_banking_and_insurance_operations

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