ING Group and his financial solvency

www.minus19.com

18-10-2008 | Javier Gomez

On Friday, ING we surprised Group in the Stock Exchange with a fall of 27 % encouraged by the rumors from which he is going to need a capital injection and of which his accounts are not so reliable as say to be. But at the moment, there are only that, rumors. The problem is qu at the moment when we are, any negative rumor is praised, and more when it is a question of a banking institution.

We are in a financial moment in which everything moves like a big snowball that is done more and bigger and is dragging to his step to all the managerial names they put themselves ahead. This week touched him to ING Group. The history is not complicated, but skylight, it sets with the fly after the ear to more of one. The previous Friday the Dutch government made sure that it was going to put up to 20.000 millions to re-capitalize to the financial institutions of the country. Fortis was already in the tightrope, but quickly the eyes turned towards others, while these were hiding after his flaming office tables hoping that it should not touch them the small stone.

On Wednesday Goldman Sachs extracted a report on the insurances sector, and in him it appeared the name of ING saying that if the crisis was going to more, it is company would be seen in problems. Soon, this report collaborated with the previous news thrown by the Dutch government. This day the actions fell down 10 % and his managers had to go out to say that nothing was happening. On Thursday, with the fear already in the body, and with a scared market extracting his money of the most dangerous actions, ING was falling down again other 13 %.

And on Friday they finished with giving him the brad with another report. A news agency realized the fall of this group in two days, and threw the dogs. In fact, already we know the falls that have accumulated most of European entities of the continent. But the rumors were increasing, so this agent included again the name of ING in the same phrase as the words “injection of liquidity”, and everything fell down like a playing cards castle. The actions finished with a fall of 27 %.

A new announcement of the group: "Nothing happens. Yes, we lose 500 million euros in this trimester, but we have gained 1.500 in others two. We are reliable”. Of course, he added that they would study the program of capital injection of the Dutch government …

And on Monday? as the Stock Exchange is right now, to bet that rise or they go down it is a foolhardiness, but a few very hard days wait for him for the company because the fear is very powerful, and when there is fear, it sells.

ING Group only has left to cross the fingers and that does not extend this fear as the gunpowder and that does not affect his famous banking institution that so much promises to be in the TV. Yes, because if the fear leads to thinking that ING might have problems with his solvency to confront the deposits that it has …

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