ING on the ropes with £8 billion cash injection
As the situation in Europe appears to be getting worse before it gets better it has been revealed that the Dutch authorities have injected a further £8 billion into troubled banking giant ING. The move is seen as part of a concerted effort to shore up the European banking system but in the case of ING this is not the first bailout of recent times.
The sub-ordinate bonds which the government is acquiring will allow ING to continue paying dividends and give the bank the option of buying back the bonds at 150% of the cost. It is this massive increase in the buy back price against the purchase price which has alerted many to what seems to be a major problem at the bank.
While we are seeing progress across Europe on the rescue package it has been very slow and a little uncoordinated at times but seems to be getting there. It will be interesting to see how much this downturn is going to cost the European tax payer as the figures already mentioned must now be approach the trillion pound mark!
This will go down as one of the costliest downturns of all time!
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