On the face of it it looks like the Irish guarantee is crap compared to what’s being provided by the Uk and the rest of Europe but it could end up being (perhaps unwittingly) a masterstroke. With the various plans being implemented across the globe the whole financial system will get the boost it needed, liquidity will gradually return and in time the banks will rebuild their balance sheets and move out of danger. In the case of the UK and other European states, this will come at considerable cost to the taxpayer given the immediate investment in the banks but in Ireland’s case it will likely cost nothing - the 500 odd billion will only ever be called upon if a bank fails and the chances of that happening will diminish daily provided the European wide measures have the desired effect on the interbank markets and early indications are that they will. Lenihan = genius.
One suspects the details of the Irish plan are being delayed in order to see what other countries are doing but after today it doesn’t really matter what goes into it. There’s a good chance none of the foreign owned banks will even go into it now, particularly Ulster, as they have their own guarantees / govt investments which will be a relief to the govt.
[quote=“Jugs”]On the face of it it looks like the Irish guarantee is crap compared to what’s being provided by the Uk and the rest of Europe but it could end up being (perhaps unwittingly) a masterstroke. With the various plans being implemented across the globe the whole financial system will get the boost it needed, liquidity will gradually return and in time the banks will rebuild their balance sheets and move out of danger. In the case of the UK and other European states, this will come at considerable cost to the taxpayer given the immediate investment in the banks but in Ireland’s case it will likely cost nothing - the 500 odd billion will only ever be called upon if a bank fails and the chances of that happening will diminish daily provided the European wide measures have the desired effect on the interbank markets and early indications are that they will. Lenihan = genius.
[/quote]
Yeah I think that’s the likely outcome alright and to be fair that was fairly apparent all along that the governemnt didn’t really have funds to be investing so they decided to tackle perception instead of introducing capital. Whatever capital they injected wouldn’t have made an impact outside Ireland to which we’re completely vulnerable so they were always reliant on stability in the EU at a minimum.
BOI took another hammering today. Traded as low as 1.50 a share today, have recovered a bit now to 1.70.
AIB have for the first time fallen before 3 a share and anglo are still hovering about the 2 mark. Would any of these be liable for a taken over or whats the story?
Hard for many banks to get the capital together to mount a takeover bid. Governments that bailed them out might be asking questions about where they got the money from to buy a subsidiary for themselves.
[quote=“therock67”]Christ they’re unreal low at this stage.
Hard for many banks to get the capital together to mount a takeover bid. Governments that bailed them out might be asking questions about where they got the money from to buy a subsidiary for themselves.[/quote]
True. Funny reading the first couple of pages of this thread now.
Dodgy enough stuff going on with BOI and Anglo shares getting back above 1 after trading and finishing down around 80 cent yesterday. The market seems to think it’s inevitable that banks will need capital from the government. And soon.
Have a small bit of compassion for our fallen brothers Bandage. Wouldnt like to be looking for a job next week and thats not maybe, and a lot of them lads in Anglo might be.
Great article in this weeks phoenix about Anglo, I just have it scanned not sure how I could post it up here?
[quote=“dancarter”]Have a small bit of compassion for our fallen brothers Bandage. Wouldnt like to be looking for a job next week and thats not maybe, and a lot of them lads in Anglo might be.
Great article in this weeks phoenix about Anglo, I just have it scanned not sure how I could post it up here?[/quote]
Upload it to Imgshack or to Tinypic and post the link on here.