Good for the European Commission. The news that ING, the financial services group, is now breaking up its banking and insurance divisions – and being forced to sell ING Direct USA – is one of the first times that a banking group has been properly humbled for its role in the financial crisis.
So far, national governments have largely avoided actually making banks smaller as the price for needed to be bailed out. Indeed, the trend has been in the other direction – Hank Paulson, the US Treasury secretary last year, pushed for deals such as Bank of America taking over Merrill Lynch. Read more