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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
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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.

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.
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)
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.
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)
Wouter Bos, the Dutch finance minister. The Netherlands is set to take an 80% stake in alt-A loans after ING announced a severe quarterly loss of $2.6 billion.
Wouter Bos, the Dutch finance minister. The Netherlands is set to take an 80% stake in alt-A loans after ING announced a severe quarterly loss of $2.6 billion.   (AP Photo)
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layoffs • subprime mortgages • Netherlands • Alt A loans • Dutch government • bailout • ING

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