Huge Losses at ING Bring New CEO, 7K Job Cuts

Dutch banking giant posts $2.6B in quarterly loss, against asks government for help
By Jason Farago,  Newser Staff
Posted Jan 26, 2009 8:32 AM CST
The Dutch flag flies outside the ING head office in Amsterdam. The banking giant is seeking a second bailout as it lays off 7,000 employees and installs a new CEO.   (AP Photo)
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(Newser) – ING posted a $2.6 billion quarterly loss today, leading the banking giant to replace its CEO, fire 7,000 employees, and seek new guarantees from the Dutch government. The request for state aid is ING’s second in three months, and the bank said it might even need a third bailout in the future, the Financial Times reports.

The deal will leave the Dutch government with an 80% stake of “Alt-A” mortgage-backed securities, a class between prime and subprime. Michel Tilman, ING’s CEO since 2004, was replaced by Jan Hommen, a board member who served as CFO at Philips, the Netherlands' electronics powerhouse. ING also announced that it will extend its cancellation of bonuses for management into 2009.