So much for bancassurance. The idea that bankers and insurers would cross-sell each others’ products seemed straightforward when ING was created in the early 1990s. Furthermore, there was a ratings agency trick that allowed the Dutch bancassurer to double-count the capital allocated to each business. But then the financial crisis hit both banking and insurance portfolios, and regulators looked askance at its double-headed capital structure. ING had to turn to The Hague for a €10bn capital injection. Now the European Commission has ruled that, to compensate for that state aid, it must break itself in two.

Brussels is doing investors a favour by accelerating chief executive Jan Hommen’s “back to basics” plan. First, though, ING has to repay government assistance. A €7.5bn rights issue will meet half that bill, and fund a separate €1.3bn payment demanded by Brussels to cover a portfolio of toxic mortgages taken on by the government. Selling the asset management and insurance businesses via an initial public offering or a trade sale should easily cover the balance.