ING bank pulls out of Britan

[Mega]

http://www.bbc.co.uk/news/business-20226063
Well, well...........they sussed it..........the "bussiness users" will not be able to pay for their lease-hire BMW & the Moblity market is going to die as from next April............

Ho Ho Ho..........
Another bites the dust.
Mike

[FrankL]

Re: ING bank pulls out of Britan

http://www.bbc.co.uk/news/business-20226063
Well, well...........they sussed it..........the "bussiness users" will not be able to pay for their lease-hire BMW & the Moblity market is going to die as from next April............

Ho Ho Ho..........
Another bites the dust.
Mike

ING Group is desperately trying to sell of assets to comply to Basel and EU demands, and to pay back Dutch government support so that it may return to giving huge bonuses to its personnel. That last bit will undoubtedly fail, as the Dutch real estate market is starting to achieve terminal velocity towards a complete meltdown.

The next casualty of the Dutch real estate collapse, which will turn the Netherlands into Ireland-light, is going to be SNS Reaal. A relatively small finance group compared to the massive banks (in terms of assets to Dutch GDP ratio which is in the 15-18% range) Rabobank and ING (93-110% of GDP and somewhere north of 150% of GDP respectively). Personally, I hope the Dutch state will flip them the finger and force them to go into liquidation of their assets. Realistically, I expect them to be bailed out somehow at the expense of the Dutch citizen. Integrity in the political class doesn't seem to go more southern than Denmark (where banks are not saved by the government as far as I know).

The other Dutch giant, ABN-AMRO, luckily got bought out in 2007 by incompetent foreign banks (RBS, Fortis and Grupo Santander) in who took control over that toxic pile of rubbish before the Dutch government needed to bail out a relatively small portion of it a year later (by nationalizing the Dutch assets of the Fortis controlled stake in ABN-AMRO, which went belly-up just like their other Belgian friends, Dexia Group). I'm sure without the buyout of the international consortium, the damage would have been much, much greater to the Dutch state.

I'm sure the Dutch state won't be this lucky when the time comes to write off the billions of toxic assets off the balance sheets of Rabobank and ING Group. Why they still have triple-A rating is beyond me... I guess the rating agencies take into account the docility of the Dutch citizen in paying bankers for their toxic assets.

[Mega]

Re: ING bank pulls out of Britan

Hi Frank
Yep, its 2nd round of the banking collaspe............my God, yes can smell the fear!
Mike

[FrankL]

Re: ING bank pulls out of Britan

Hi Frank
Yep, its 2nd round of the banking collaspe............my God, yes can smell the fear!
Mike

Allegations of fraud have been filed against an employee of SNS Reaal who was tasked with cleaning up the mess at their real-estate assets.

Things might start to accelerate downwards from here, as this news hardly will increase appetite for bonds/equity of SNS Reaal.

I've seen people speculate that the government will probably nationalize at least their consumer deposit business, as there's 30 billion euro in there that would needed to be pre-financed by their competitors in case of liquidation of SNS Reaal. This is because of the way the Dutch deposit-guarantee scheme works. Some of their competitors might not be able to pre-finance their share without getting into trouble themselves.

[Mega]

Re: ING bank pulls out of Britan

hi Frank
http://www.cityam.com/latest-news/50...jml_nA.twitter
Mike

[FrankL]

Re: ING bank pulls out of Britan

ING Group is desperately trying to sell of assets to comply to Basel and EU demands, and to pay back Dutch government support so that it may return to giving huge bonuses to its personnel. That last bit will undoubtedly fail, as the Dutch real estate market is starting to achieve terminal velocity towards a complete meltdown.

The next casualty of the Dutch real estate collapse, which will turn the Netherlands into Ireland-light, is going to be SNS Reaal. A relatively small finance group compared to the massive banks (in terms of assets to Dutch GDP ratio which is in the 15-18% range) Rabobank and ING (93-110% of GDP and somewhere north of 150% of GDP respectively). Personally, I hope the Dutch state will flip them the finger and force them to go into liquidation of their assets. Realistically, I expect them to be bailed out somehow at the expense of the Dutch citizen. Integrity in the political class doesn't seem to go more southern than Denmark (where banks are not saved by the government as far as I know).

The other Dutch giant, ABN-AMRO, luckily got bought out in 2007 by incompetent foreign banks (RBS, Fortis and Grupo Santander) in who took control over that toxic pile of rubbish before the Dutch government needed to bail out a relatively small portion of it a year later (by nationalizing the Dutch assets of the Fortis controlled stake in ABN-AMRO, which went belly-up just like their other Belgian friends, Dexia Group). I'm sure without the buyout of the international consortium, the damage would have been much, much greater to the Dutch state.

I'm sure the Dutch state won't be this lucky when the time comes to write off the billions of toxic assets off the balance sheets of Rabobank and ING Group. Why they still have triple-A rating is beyond me... I guess the rating agencies take into account the docility of the Dutch citizen in paying bankers for their toxic assets.

as I expected above, SNS Reaal has been nationalised (today), costing the Dutch tax payers 4.8 milliard (billion) Euros.

Once the Dutch housing market starts deflating for real (i.e. 10+% per year), and the true value of commercial property can no longer be hidden on the balance sheet, we'll see further interventions in the Dutch banking sector. Personally, I think the most likely scenario to occur is going to be the transfer of residential mortgages and commercial real estate onto the balance sheet of Dutch pension funds. The price for these assets will be somewhere between par and the real value, but tending more towards the 'par' end, as banks balance sheets cannot withstand a write down to real values.

[Mega]

Re: ING bank pulls out of Britan

Hi FRANK!.................nice to see you.

Yes, let the BLOODBATH BEGIN!!!!!!!!!!
;)
Mike