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Anglo Irish To Be Nationalised


shedfish

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And we have a link:

Govt to take control of Anglo Irish Bank

The Government has announced plans to take complete control of Anglo Irish Bank, saying its previous plan to inject money into the bank is not the best way to secure its viability.

Anglo Irish Bank's chief executive David Drumm and chairman Sean FitzPatrick resigned last month in a controversy over secret loans to directors. Its finance director and chief risk officer Willie McAteer resigned last week.

The Government had planned to inject €1.5 billion into the bank, taking 75% of the voting rights in the process.

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Since reaching a peak above €17 in mid-2007, shares in Anglo Irish have plummeted, and closed at just 22 cent in Dublin today.

A statement tonight said the bank would continue to trade normally and all its employees would stay with the company.

The Government said 'unacceptable practices' within the bank had caused it serious damage.

The Government has prepared legislation to give effect to the nationalisation, which will be presented to the Oireachtas on Tuesday.

Trading in the shares is expected to be suspended before the Irish stock market opens tomorrow.

The Government statement said shareholders rights would be respected, and the legislation will outline plans for compensation.

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maybe Italy just wriggled out of being labelled one of the eurozone 'PIGS'

I think Italy's cultural difference to Northern Europe and Spain reference owning housing has probably been their saving grace.

It is notoriously difficult to get a mortgage in Italy, which coupled with low wages and insecure work for relatively younger people, means a housing bubble never really materialised there.

Alot of people in Italy live with parents well into their 30's.

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from the article,

..[Mr Lenihan] said that the Government believes that the recapitalisation "is not now the appropriate and effective means to secure its continued viability."...

...Mr Lenihan added that the Government "remains fully committed" to the recapitalisation proposal already announced in relation to AIB and Bank of Ireland.

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will this hit uk bank shares?

My view is YES(the big boys have been dumping shares this week as fast as they can) if this happens in the UK the shareholders will get FA like Northern Rock shareholders coupled with today's announcement Re Equitable life whose customers will get FA or very little , we are busted skint penniless broke lost defeated and above all Labour are in control

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how long to you give the goverment then? ... as a percentage of gdp what are its liabilities assuming full nationalisation....

FT: Dublin nationalises Anglo Irish Bank

The government move was prompted by fears that it could be declared insolvent triggering the state’s guarantee, leaving the government responsible for settling close to €50bn (£45bn) of bank liabilities.

Anglo Irish is widely perceived as the bank most exposed to Ireland’s property crash, with fears that bad debts would mount, with most brokers forecasting losses for the next three years.

So about 25% of Irish GDP. :huh:

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Iceland v.2 ?

Yep. Ireland are in deep deep trouble. Their banking system was not as extensive as Iceland, but they have no control over i/r's and currency devauation is not an option.

Back to being a basket case for the Emerald Isle I am sorry to say.

I think we'll see a number of countries reverting to industries that they are good at: for example tourism.

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