ING forced to split by European Commission
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ING has announced it is to sell its insurance business in a bid to gain approval from the European Commission of the state-backed bail-out it received during the credit crunch.
ING’s insurance business is thought to be worth between £10bn and £13bn and the group will also sell off its US bank operation and its investment management business.
This is indicative of European Union competition commissioner Neelie Kroes’ tough line to break up big banks which have received state aid and has implications for the future of Lloyds Banking Group and RBS.
Both banks have announced plans to reduce their balance sheet but analysts fear that Kroes may want the banks to go further than this.
Shares in ING group fell 18 per cent after the plans were announced.
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