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Monday, October 26, 2009

ING to Raise $11.3 Billion, Lloyds to Raise $38 Billion

by Calculated Risk on 10/26/2009 08:37:00 AM

Two articles from the NY Times Dealbook:

ING to Split in Two Amid $11.3 Billion Rights Issue

ING Group, the Dutch financial services company, said Monday that it planned to break up its insurance and banking businesses and raise up to 7.5 billion euros, or $11.3 billion, in a stock issue, after reaching a deal with the government to repay ahead of schedule half the money it received in a bailout last year, The New York Times’s Chris V. Nicholson reported.

ING was propped up with 10 billion euros in emergency funds from the Dutch government in October 2008, which helped cushion the company’s core Tier One capital, a measure of financial strength, during the global financial crisis.
Lloyds Said Set to Raise $38 Billion
Lloyds Banking Group plans to will announce within days a 23 billion pound ($38 billion) fundraising plan to shore up its balance sheet and avoid a U.K. government debt insurance program, The Times of London reported.
The fundraising comes as Lloyds seeks to escape taking part a costly government insurance scheme, that would give the British government a controlling 60 percent stake in the bank ...
Some pretty amazing numbers ... obviously some banks think now is the time to raise capital.