[quote=“north county corncrake”]i have a mate in anglo too so obviously hope it stays open
who the fuck is jim power & what has he ever done to be such a prominent media figure- not once did i hear him warning people about the downturn beforehand
was this a prudent decision
http://www.independent.ie/unsorted/property/friends-first-reopens-irish-property-fund-44100.html[/quote]
Ya Jim Power cant really be taking the moral high ground now.
The real issue is why he ever got such prominence anyways in the media. All the Banks need an economist I guess, but why the media put such stock in what they had to say was mad. They had a very obvious vested interest and this was never really questioned enough.
Jim Power is no mug though, you can be sure what he was telling the board was not the same as what he was telling the media.
And devaluing his viewpoint now, because he has been wrong in the past, is somewhat dangerous. Nobody called the current situation, of course some were more cautious and negative than others but this is a financial ‘perfect storm’. I have been in meetings recently with the founder of one of the countries biggest accountancy practises, who has been through the recesionary cycle 10+ times worldwide. He feels this is different because the Banks are also in crisis and cannot be used as a tool to ease/assist general economic conditions. The lack of liquidity in the market is at the nub of the problem.
I can understand Bandages point also about the wholesale job losses that might happen if Anglo go under. But say the gov only has 10bn to put to the recapitalisation, and Anglo requires 30% of this to stay afloat, BOI/AIB probably have twice or three times the staff levels so do you protect these companies as a priority? I dont know the answer to this question.
But I do think that even if Anglo get recapitalised there prblems wont be solved. The loan book is still sitting there to be managed out, recapitalisaion just gives them the buffer to realise the losses they will inevitable make.
Whilst it is not a wholly scientific analysis in my 8 years in banking, in 3 different Banks I have never lost a deal to BOI, a small few to AIB, but a shit load to Anglo. They did 100mln euro deals in the space of days. While I was still crucnhing the numbers putting the deal together they had the money out the door, it used to sicken us. But looking at it now, two or three days is not enough time to do full due diligence on these deals, nowhere near enough time. Ultimately I think they will pay the price for this, the model which was the envy of every Banker in the country is inherintley flawed.
One last point. IF it goes under, there will be a shit load of formerly highly paid Anglo staff floating around looking for work. Talking to my boss about this yesterday I mentioned a few fellas might be able to add something to our team and he was adamant we would not be hiring any ex anglo staff as in his words ‘they are not real bankers’. Rightly or wrongly this attitude will sit out there in the market and make life that bit more difficult for them.