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Ireland: Corpse Bank Vs Zombie Bank

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The whole thing would depend on trust of course: and trust is in short supply for the Irish government right now - not just because of its performance but because the people might eject it and elect a new one that does not honour either of the above pledges.

How to get around this?

Well interestingly enough, on 17 September 2009 a company was incorporated called Bank of Ireland (UK) plc, regulated by the Financial Services Authority in London. This was to take over the UK customer accounts of Bank of Ireland, mainly the Post Office savings account.

If you look at the structure of how the deposit guarantee scheme works you can see that the queue has slightly been re-ordered: the British government now stands behind the first 50k of deposits and - under certain conditions - the Irish government stands behind the rest.


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It takes a bit of reading in order to fully understand but Paul Mason makes a lot of sense.

I can a couple of near term paths...

1. The Ireland Bailout fails. Interested parties cannot reach agreement and there is capital flight. Outcome = Severe Crisis. Potential for Ireland to default and leave (or be forced out of) the Euro.

2. The senior debt takes a significant haircut. Outcome = Significant falls in certain banking stocks. Could have an adverse effect on UK.

3. The can is kicked down the road one more time. Outcome=Next round is Portugal probably later this year.

What will be interesting is whether depositors will face any pain in the above scenarios e.g. restrictions on withdrawls.

Edited by nuts
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It takes a bit of reading in order to fully understand but Paul Mason makes a lot of sense.

Sorry, still don't understand entirely.

Obviously, Post Office accounts are a bit sensitive.

I'd be grateful if someone could explain how the Post Office (banking) was sliced and diced originally - I thought it was given to Alliance & Leicester - and assumed some had followed naturally to Santander. When did the Post Office business wind up in the Bank of Ireland? And when was it 'relocated' (maybe in panic) back to the UK? That implies someone knew something.

Maybe Masked Tulip may have stumbled on a good investigative journo story here. The Government was indeed giving Post Office business to the banks . . . plural. I know for a fact that Pensioners and Jobseekers were browbeaten to have their dues paid into bank accounts and all told that cashable Post Office giros would end at lunchtime doomsday. It was written into the script of Job Centre personnel. (They were told something about, 'Labour Targets'.)

Always did think that the Post Office sell-off (of assets) was a huge wobbly.

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  • 417 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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