Netherlands: ING Bites the Bullet
One of the great debates among U.S. bank regulators is whether large, ailing firms should be broken up to pose less risk to the financial system. But in Europe, the debate already seems settled: just do it. At least that’s the message traders heard from ING.
The European Commission has cracked down harder on antitrust issues than regulators in the U.S., says Jaap Meijer, a bank analyst with Evolution Securities in London. “It’s all very drastic,” he says. But ING is “solving its weak capital base” by taking these steps. And other banks should ultimately emerge in a healthier state after they also raise capital and divest assets. Still, some bank analysts said ING’s settlement with regulators looks less favorable than they’d expected. And the news hit European bank stocks hard today, with ING falling over 7% in Amsterdam trading.
Note EU-Digest: Isn't it time for US Banks to do the same??
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