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Email this4:30 pm
November 8, 2009
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So is anyone affected by this here in Canada? Probably are a lot of US staff looking nervously for an email indicating redundancy in the new structure.
10:52 pm
December 12, 2009
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I think it's only a matter of time before they ultimately sell ING Direct Canada, as well. I think it's very clear they are retreating from North America, despite any denials from their PR people, and will focus on their European operations and possibly expand within Europe once they back the EU bailout loans.
It won't be a fire sale, however, so if Ally wants ING Direct Canada, they'll need to bring lots of cash to the table.
Cheers,
Doug
6:00 am
Doug said:
I think it's only a matter of time before they ultimately sell ING Direct Canada, as well. I think it's very clear they are retreating from North America, despite any denials from their PR people, and will focus on their European operations and possibly expand within Europe once they back the EU bailout loans.
It won't be a fire sale, however, so if Ally wants ING Direct Canada, they'll need to bring lots of cash to the table.
You keep on saying that but I don't see why ING would keep on developing new products if what they want is to ultimately sell the business. With the arrival of Streetwise funds and Thrive, and now they're contemplating getting into the credit card business, to me it's not clear at all that they are looking for the exit.
I can understand they might not care so much about the US anymore, but Canada has always been a safe place to do banking and they have a significant imprint in our market. I doubt they are going anywhere anytime soon.
11:22 am
December 12, 2009
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I think they're making the Canada business more attractive to a potential buyer, i.e. the launch of a Mutual Fund family and a free chequing account. For instance, ING Direct USA already had its popular Electric Orange chequing account. Perhaps they invited buyers for ING Direct Canada and found no buyers willing to pay for the intrinsic value of the unit? Sometimes businesses do rush to sell underperforming assets (case in point, RBC selling its U.S. operations) but there have been cases where spending to build the business up to attract buyers (i.e., HBC building up its credit card business on a massive scale to sell it to GE Money, which earlier this year sold it to Capital One Canada or rival Sears Canada even had a Canadian bank subsidiary that it built up and ultimately sold to JP Morgan Chase). Time will tell and it may not happen immediately but I would say within 1-2 years.
They wouldn't be "going anywhere", simply changing owners and branding.
Cheers,
Doug
9:57 am
Doug may be closer to the story than you know. ING Bank of Canada actually has 2 branches of operation; ING Direct and ING FAS (which offers the same deposit products through a financial advisor). The client receives the same interest rates through either channel. The advisor rexceives a ver modest compensation for serving these clients. ING has just announced that the they are shutting down the advisor channel. This will go out to clients in mid-summer.
Sounds like Ally - GMAC Finance - (or someone just like them - President's Choice) has an offer in already but wants the advisor 'liabilty' chopped off. Watch for this to close before year end.
I would start looking closely at Manulife Bank.
5:38 pm
August 4, 2010
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From what I've read, ING was rather reluctant to sell the US operation, but they got something like $15 billion in bailout money from the Dutch government, and they were under pressure from European regulators to finish repayment. I remember reading they will still continue to grow their other ING Direct operations, although I don't know if Canada was mentioned specifically.
6:50 am
December 22, 2011
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Just read this today on the financial post. It says that ING Direct may consider selling its online bank in Canada. Now sure if this is true or not. Here's the link
9:14 am
May 15, 2007
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moneysaver said:
Just read this today on the financial post. It says that ING Direct may consider selling its online bank in Canada. Now sure if this is true or not. Here's the link
They confirmed it with this Tweet:
"ING confirmed it's reviewing strategic options for ING DIRECT Canada, including a potential sale. No decision and it's Savings as usual."
10:46 am
December 22, 2011
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Just pulled my US$ from ING. It's not covered by the CDIC and I didn't want to take any chances until I see what happens here.
7:46 pm
Simon said:
Doug predicted this a year ago
Doug said:
I think it's only a matter of time before they ultimately sell ING Direct Canada, as well. I think it's very clear they are retreating from North America, despite any denials from their PR people, and will focus on their European operations and possibly expand within Europe once they back the EU bailout loans.
It won't be a fire sale, however, so if Ally wants ING Direct Canada, they'll need to bring lots of cash to the table.
You keep on saying that but I don't see why ING would keep on developing new products if what they want is to ultimately sell the business. With the arrival of Streetwise funds and Thrive, and now they're contemplating getting into the credit card business, to me it's not clear at all that they are looking for the exit.
I can understand they might not care so much about the US anymore, but Canada has always been a safe place to do banking and they have a significant imprint in our market. I doubt they are going anywhere anytime soon.
1:51 pm
December 12, 2009
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moneysaver said:
Just pulled my US$ from ING. It's not covered by the CDIC and I didn't want to take any chances until I see what happens here.
You do realize CDIC coverage would only come into play if the institution failed and no institution was willing to take on the deposits. CDIC legislation and regulations were strengthened in the last few years to allow CDIC to actually take over the management and day-to-day operations of a troubled institution in order to prep it for sale or takeover by another institution (like has happened in the U.S.). In cases like that, such as a forced sale or takeover, I would think all deposits would be guaranteed as the institution doing the takeover has agreed to take on all of assets and liabilities of the institution being taken over.
If someone is so concerned about an institution's pending collapse that they pull all of their foreign currency savings, which have never been CDIC insured I would point out, that person is obviously so risk-averse, honestly they probably shouldn't have any bank deposits at all (regarded as the safest of all savings vehicles, hence the lowest returns on investment) and should instead invest in the best, state-of-the-art safe and alarm system money can buy and store their money in said safe, in a concrete-and-steel fortified undeground bunker with 24-hour monitoring system guarded by trained guard dogs. 
Cheers,
Doug
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