ING Groep NV (INGA), preparing for a sale of its U.S. online bank, is looking to merge the unit with a lending operation and has talked in recent months with Citigroup Inc. (C), CIT Group Inc. (CIT) and Chrysler Financial Corp., said people with knowledge of the matter.
ING first announced plans to divest ING Direct USA in October 2009. As I described in my 2009 blog post
, this was part of European Union's requirements after ING received bailout funds during the 2008 financial crisis.
I hope ING Direct doesn't get bought by Citigroup or any other megabank. That won't help their deposit rates any.