Thursday, March 13, 2008

ING Freezes Withdrawals In Two Funds, INDEFINITELY

This is just wrong, investors punished for mistakes of the management team. ING, one of the larger fund management firms based in Australia has frozen all withdrawals from 2 of their credit instrument based funds. The reason given, lack of liquidity.

Lack liquidity, that just means ING has had a hard time selling the damn things off to others at adequate prices. The supposedly highly qualified fund managers at ING had made decisions on the trades/investments knowingly. They even had the balls to claim the 2 involved funds as "low risk", when they had absolutely no clue how these instruments would perform in a bearish environment.

Irresponsible and clueless, with the early warnings last July, ING could have adapted much more conservative strategies to prevent this dire stage. Having associated investment advisers push the funds as "low risk" or "safe" is outright FRAUD.

Innocent and mislead, the investors have been left out in the cold, without their money. For some, this means life savings they had killed themselves for. The link article mentions an 85 year old woman who has $300k lost from one of the funds.

This is completely unacceptable. The ING managers screwed up, and deserve punishment, not the people. ING should be forced to liquidate assets to raise enough cash to fund withdrawals, and contain the problem within its own premise.

Anyway, they're talking about it over the radio now. I might just give them a call.

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