Dutch gov't invests $13B in ING Groep

October 19, 2008 5:30:34 PM PDT
The Dutch government says it will invest 10 billion euros ($13.4 billion) in banking and insurance company ING Groep NV to boost its capital position.Finance Minister Wouter Bos says the move was necessary to calm "market expectations" even though the bank was "healthy."

Bos said at a news conference Sunday the government's stake would be around 8.5 percent of the company, but the investment is temporary. The government will name two members to ING's supervisory board.

ING said separately it will cancel dividends for the year and the company is reviewing executive pay.

The company's shares slumped on the Amsterdam stock exchange Friday on rumors it was short of capital, closing down 24 percent at 7.70 euros ($10.31).


Load Comments