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€10bn govt aid for Dutch banking company

Christine Lagarde - Calls for audit of all French banks
Christine Lagarde - Calls for audit of all French banks

Dutch banking and insurance company ING will receive a €10bn cash injection from the Dutch government.

Dutch Finance Minister Wouter Bos said ING needed help because of the global squeeze on credit, but insisted the bank was not in major trouble.

Meanwhile, the chairman and two senior executives at France's third largest bank, Caisse d'Epargne, have resigned over the loss of some €600m in a trading scandal.

Chairman Charles Milhaud said he accepted full responsibility and is expected to leave without a pay-off.

French Finance Minister Christine Lagarde has called for a special audit of all French banks.

Elsewhere, the Swedish government has announced steps to shore up investor confidence in its banks, despite saying its banking system is solid.

The government has outlined a plan worth more than €150bn to support the country's financial institutions.

The programme will include credit guarantees and a bailout fund. It will run to 30 April 2009, but can be extended by the state as far as 31 December 2009.

Financial Markets Minister Mats Odell said: 'The government is proposing powerful measures to ease the effects on Swedish households and companies of the financial turbulence.'

The government will act as guarantor for new, mid-term borrowing by banks and mortgage firms in return for a risk-weighted fee.

The plan will also set up a stability fund, into which the government will put €1.5bn, which will be used to bail out any important financial institution that runs into a solvency problem.