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ING - cutting 7000 jobs

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  • Feb 3rd, 2009 3:43 pm
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ING - cutting 7000 jobs

http://www.cbc.ca/money/story/2009/01/26/ingcanada.html


ING Canada profit drops 75%, parent company cuts 7,000 jobs
Last Updated: Monday, January 26, 2009 | 11:34 AM ET Comments6Recommend19
CBC News

The company that urges Canadians to "save your money" in repeated advertisements is having trouble holding on to its own cash.

ING Canada reported a fourth-quarter net loss Monday of $64.1 million.ING's stock priceING's stock price

Full-year net income for 2008 was $128.2 million, down 74.8 per cent from the previous year.

"Given the deep and prolonged decline of the Canadian stock market and the level of uncertainty about its recovery, we took a significant impairment on our common equity portfolio," ING President and CEO Charles Brindamour said in a statement.

There are indications that customers of ING insurance arm are soon likely to face higher premiums.

"The increased cost of claims in automobile insurance and the changing weather patterns are likely to drive up the price of home and auto insurance products in 2009, " he said.

ING Canada released its financial results early because of dramatic developments at its parent company, ING Group of the Netherlands.

The Global bank and insurer will book a large fourth-quarter loss, cut 7,000 jobs and change its CEO. The company predicts a $52 billion loss when it posts its earnings on Feb. 18.

ING said in the fourth-quarter "market conditions deteriorated sharply, making it the worst quarter for equity and credit markets in over half a century."

The company said CEO Michel Tilmant's abrupt departure should be seen "in light of the extraordinary developments over the past few months."

The job cuts represent five per cent of the company's total workforce.

In a deal reached with the Dutch government, the state will assume the risk for most of the $44.32 billion in troubled U.S. mortgage-backed securities ING owns.

The securities are based on "Alt-A" mortgages that are a step below prime mortgages. They were often made with limited or no documentation of assets or income, leading to the nickname "liar loans," and many borrowers are defaulting.

Analysts say the current market value of these securities is roughly two-thirds of face value. ING's deal with the state assumes they are worth 90 per cent.

Under the complex deal, the government will assume 80 per cent of both risk and payments from the portfolio.

For ING, the benefits of the deal include further deleveraging of its balance sheet. It said its Tier 1 ratio
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rfdrfd wrote: http://www.cbc.ca/money/story/2009/01/26/ingcanada.html


ING Canada profit drops 75%, parent company cuts 7,000 jobs
Last Updated: Monday, January 26, 2009 | 11:34 AM ET Comments6Recommend19
CBC News

The company that urges Canadians to "save your money" in repeated advertisements is having trouble holding on to its own cash.

ING Canada reported a fourth-quarter net loss Monday of $64.1 million.ING's stock priceING's stock price

Full-year net income for 2008 was $128.2 million, down 74.8 per cent from the previous year.

"Given the deep and prolonged decline of the Canadian stock market and the level of uncertainty about its recovery, we took a significant impairment on our common equity portfolio," ING President and CEO Charles Brindamour said in a statement.

There are indications that customers of ING insurance arm are soon likely to face higher premiums.

"The increased cost of claims in automobile insurance and the changing weather patterns are likely to drive up the price of home and auto insurance products in 2009, " he said.


ING Canada released its financial results early because of dramatic developments at its parent company, ING Group of the Netherlands.
As if their prices weren't high enough. This is what happen when more people are claiming from insurance. We all take a hit!

Get ready to shop around as you will be facing increases in your insurance premium. This also includes belair direct
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I was just gonna post about this. I have my money in a ING ISA, should I move out all of my money before they go bankrupt?
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radeonboy wrote: I was just gonna post about this. I have my money in a ING ISA, should I move out all of my money before they go bankrupt?
Maybe if you have more than 100K... Up to 100K is covered by CDIC insurance.
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I just saw this on google finance. Sucks for those people..
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radeonboy wrote: I was just gonna post about this. I have my money in a ING ISA, should I move out all of my money before they go bankrupt?
Why do you believe that ING is going to go bankrupt?

ING Canada had a bad quarter, but still made a profit last year. They might have a couple more bad quarters, but there is no indication that bankruptcy is anywhere in sight.

And the Dutch government has made it quite clear that it has no plans to allow ING to go bankrupt. The Dutch government just removed $40B of bad loans from ING's portfolio, and provided loan guarantees for another 10B euros. ING's portfolio now appears to be reasonably clean, its Tier I capital is good and if there are more problems that Dutch government is likely to step in again.

This doesn't look like a bank that is going bankrupt anytime soon.


(And of course, in worse case you also have CDIC as already mentioned.)
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asdfvcx wrote: Why do you believe that ING is going to go bankrupt?

ING Canada had a bad quarter, but still made a profit last year. They might have a couple more bad quarters, but there is no indication that bankruptcy is anywhere in sight.

And the Dutch government has made it quite clear that it has no plans to allow ING to go bankrupt. The Dutch government just removed $40B of bad loans from ING's portfolio, and provided loan guarantees for another 10B euros. ING's portfolio now appears to be reasonably clean, its Tier I capital is good and if there are more problems that Dutch government is likely to step in again.

This doesn't look like a bank that is going bankrupt anytime soon.


(And of course, in worse case you also have CDIC as already mentioned.)
Nice. I was thinking about the recession, how everyone is losing their jobs, some banks going down under in the states, etc. etc. Just really bad times everywhere.
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radeonboy wrote: I was just gonna post about this. I have my money in a ING ISA, should I move out all of my money before they go bankrupt?
Don't worry ING is not going to bankrupt, far from that.
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"if" they do go bankrupt, what happens to my motgage?
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speedyforme wrote: "if" they do go bankrupt, what happens to my motgage?
most likely sold to another taker
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rdtx2002 wrote: most likely sold to another taker
Yes, ING Insurance will likely be sold off sometime in 2009 when they can get a price they want. Who knows what happens to ING Direct Canada.
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Quick!

Lets do a RFD run on ING Direct's deposit base :lol: :lol: :lol:
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I hope they fire my co-worker instead of me. He joined just after me. Now he is on sick leave for weeks because his father/mother/whoever is ill. We get full pay for sick leave. I am sick of people taking undue advantage of sick leave. I mean how many weeks this goes on? No wonder ING is in trouble.
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canadiantofu wrote: Maybe if you have more than 100K... Up to 100K is covered by CDIC insurance.
Also, if you have a joint account with anyone else, that account would also separatly be covered up to 100K; and RRSP ISAs and GICs are covered separatly as well. So for example a couple could each have their own ING ISA account and RSP ISA/GIC accounts and a joint account, that would make up to $500K in ING alone covered by CDIC insurance regardless of what happens to ING.
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Insurance-Broker wrote: As if their prices weren't high enough. This is what happen when more people are claiming from insurance. We all take a hit!

Get ready to shop around as you will be facing increases in your insurance premium. This also includes belair direct
Also, I heard on news that the insurance companys normally use our premium ($) to invest, they also have lost like 30%, 50% or more on their investments (like the rest of us).

So, they have to get their money back from somewhere = raise our annual premium rates again!!

My car insurance went up slightly, and I had ZERO claims last year, zero accidents, zero tickets, nothing, nada !! Ridicurous !! (Quoting Seinfeld)
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champlinD wrote: I hope they fire my co-worker instead of me. He joined just after me. Now he is on sick leave for weeks because his father/mother/whoever is ill. We get full pay for sick leave. I am sick of people taking undue advantage of sick leave. I mean how many weeks this goes on? No wonder ING is in trouble.
:confused: If I may ask, which country are you in? Here in Toronto I get 5 paid sick days in a year. Thats it. :mad:
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rfdrfd wrote: Also, I heard on news that the insurance companys normally use our premium ($) to invest, they also have lost like 30%, 50% or more on their investments (like the rest of us).

So, they have to get their money back from somewhere = raise our annual premium rates again!!

My car insurance went up slightly, and I had ZERO claims last year, zero accidents, zero tickets, nothing, nada !! Ridicurous !! (Quoting Seinfeld)
Looks like ING didn't do what they like to preach.. "Save your money!" hahaha..
They got bailed out bigtime last year by the Dutch government to the tune of 13.4 Billion. They'll need to sell of their North American assets soon to keep the parent alive.
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bmu1 wrote: :confused: If I may ask, which country are you in? Here in Toronto I get 5 paid sick days in a year. Thats it. :mad:
Toronto CA. And what I said is true. All you need a doctors letter for such long leave/Vacation. People take one sick day almost every month. I don't mind during winter as its depressing. But throughout year. Oh cmon. :mad:
ferkel wrote: Looks like ING didn't do what they like to preach.. "Save your money!" hahaha..
Oh I hate that lady. Anybody in office meeting asks about that ad I will explode for sure.
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