Delaware-based ING Direct to be sold
Monday, October 26th, 2009
By: Mark Eichmann
meichmann@whyy.org
As part of ING's global restructuring plan, the Dutch-based banking company plans to sell off Wilmington-based ING Direct by the end of 2013. The restructuring plan is part of ING's efforts to comply with European regulations. The sale of ING Direct is designed to repay loans given to the company by the Dutch government.
In a statement, ING CEO Jan Hommen says of splitting the insurance and banking businesses, "The combination provided us with advantages of scale, capital efficiency and earnings stability through a diversified portfolio of businesses. However, the financial crisis has diminished these benefits."
Despite the plans to sell off ING Direct, the parent company sees it as a strong franchise that still is capable of growth.