AIB lost 2bn in the first half of the year.
A LOT of cola bottles.
Luckily the banks have an endless supply of cola bottles
Disgraceful wastoe of tax payers cola bottles
This should be an interesting watch tonight.
Anglo Irish Bank asked to be taken over by Bank of Ireland on the same day the Government met to decide on the introduction of the bank guarantee scheme in September 2008.
The revelation is contained in the programme Freefall to be aired on RTÉ 1 television tonight.
On 29 September 2008 shares in Irish banks were falling rapidly. and Anglo Irish Bank faced the prospect of insolvency and being unable to open for the business the next day.
AdvertisementIts chairman Sean FitzPatrick and chief executive David Drumm approached Bank of Ireland governor Richard Burrows and CEO Brian Goggin at that time.
In a meeting at Bank of Ireland, Mr FitzPatrick and Mr Drumm said Anglo was facing insolvency and they asked Bank of Ireland to take over the bank but the request was turned down.
However, the overture prompted Bank of Ireland to contact AIB.
Both banks sought a meeting with Government, which was in the midst of crisis meetings on the introduction of a guarantee.
Bank of Ireland and AIB met Taoiseach Brian Cowen and Minister for Finance Brian Lenihan and outlined their concerns on Anglo.
The details have emerged as Mr Lenihan is in Brussels for a meeting of EU finance ministers where he is expected to discuss the winding down of Anglo Irish Bank with European Competition Commissioner Joaquín Almunia.
The EU is close to deciding on which of a series of options on the future of the bank it is prepared to accept.
The option originally favoured by Government involved splitting what is left of the bank, after the NAMA transfer process, into a good bank serving industry and a bad bank.
The latter would recover whatever money it could from the remaining non-performing loans.
The second option was a wind down over a decade or more.
The Green Party has decided the split option would ultimately be the more expensive and has said it favoured a wind down but over a quicker timeframe.
Some experts said that could exacerbate losses to the State, already thought to be at €25bn because of the need to sell on loans more quickly.
Yesterday, Anglo’s Chief Executive Mike Aynsley told the Sunday Business Post it would be wrong not to keep part of the bank open. He was also quoted as saying that it did not look as if splitting the bank was going to happen.
Uncertainty about the State’s future liabilities at the bank is one reason why the interest rate being demanded on Ireland’s national borrowings remains out of kilter with other European countries.
Anyone watching this?
Nothing new so far in it anyways.
Brian Lenihan missed the hop because he was at a racecourse in Kilkenny at a FF event!
Same news again only reinacted.
not watching mate
All looks very dramatic
All bankers must hang.
October revolution?
That’s a pity. Your insight would be most valuable.
Brian Cowen:
“We are NOT fucking nationalising Anglo”
Bring me the head of Seanie Fitzpatrick.
The taoiseach said fuck AGAIN
Yes, nothing really new in that other than the story they used to promote the show in the first place about Drumm and Fitzpatrick asking Bank of Ireland to buy Anglo. Lots of late night shots of rubbish blowing in the wind outside the banks with accompanying instrumental music that captured the tension and sinister nature of events. This made it awfully dramatic. :rolleyes:
Fat cat banker.
They had a part where they criticised bankers for not taking proper security on loans. Do they not realise what a pain in the hole it is to read draft debentures, guarantees, indemnities and so on? And dealing with bookish solicitors is terribly boring too. I just like to get the money out and then move onto the next thing. Taking security is a chore that I don’t have time to attend to.
Haven’t read through this thread in full, but an acquaintance of mine was banging on late in 2007 about how the banks would fail and how we should take out our deposits and short sell shares. He was a bit of an annoying colleague so I didn’t listen, he was proved right as he did short sell, made an absolute killing, has since retired and even has a woman half his age. Oh the regrets. :mellow:
So the “final” totals for the cost of bailing out with banks have been revealed.
Anglo will most likely require €29bn (worst case €34bn) and the government are also taking a majority shareholding in AIB with a €3bn bail out and Irish Nationwide needs a €2.7bn bailout.
Brian Lenihan has said this is “rock bottom”. Is he to be believed?
AIB’s total market value at the moment is 500-600m yet we as the taxpayer are paying 5 or 6 times more for a “stake” in the bank. Can someone explain to me why that makes economic sense?
It’s all a fucking shambles at this stage.
Lenihan was on the radio this morning praising BOI for their culture and hoping AIB would return to its greatness. It was as though BOI was standing up on its own two feet and hadn’t been involved in this at all. They’re 40% owned by the State, have received a huge capital injection from the State and are a key player in NAMA. And Lenihan is talking about them as the good guys.
Another thing that gets me is this reluctance to negotiate with the bondholders of Anglo. Lenihan was saying that we’re trying to sell bonds at the moment too so we can’t default or discount bonds on the one hand while trying to sell others to international players at the same time. Well why the fuck is the interest rate we have to pay on bonds so fucking high? Because there’s a built in price to take account of the risk of defaulting. So we’re paying guys to take our bonds, paying them more because they’re risky and then refusing to write-off or even discount bonds in a sham of a bank that is a financial black hole.
The €2.7bn on Irish Nationwide is shocking considering the size of their loan book. Their average discount to NAMA is over 70% apparently.