LONDON (CNNfn) - ING Barings chairman Marinus Minderhoud has taken the blame for the investment bank's surprise profit warning.
He resigned effective immediately Monday, and "accepts responsibility for the disappointing development" of corporate and investment banking. He has also stepped down from ING's main board.
The investment bank, wholly-owned by Dutch giant ING, announced on October 1 that profits for this year would grow by only 15 percent, against previous forecasts of 30-35 percent.
ING shares collapsed 13 percent on news of the profit warning to 69.8 guilders. Minderhout's resignation drove the shares up almost 7 percent to 78.6 guilders Monday.
ING blamed the shortfall on the carnage in emerging financial markets, where ING Barings has expanded aggressively in recent years.
ING had already warned that the contribution from these riskier areas would be lower than anticipated, but the latest Russian financial crisis appears to have been the final straw.
The bank blamed "realized losses on trading portfolios, greatly diminished volumes in international financial business and the necessity to make additional provisions, which relate mainly to insolvency of the Russian bank system".
Severe staff cutbacks were announced, with more 1 in 10 jobs at ING Barings due to go.
An ING spokesman said no further senior resignations are expected, and would not comment on any compensation being paid to Minderhout.
ING Barings' new chief executive, David Robins, joined on the day of the profit warning. He will now report to main board member Michel Tilmant.