Bank Of Ireland To Swap Debt

[interestrateripoff]

http://dealbook.nytimes.com/2010/12/09/bank-of-ireland-to-swap-debt-allied-irish-to-pay-bonuses/?ref=business

Bank of Ireland has made subordinated bondholders an offer that seeks to exchange 1.5 billion euros’ worth of junior debt into government-guaranteed senior debt.

“The purpose of the exchange offers is to enhance the capital base of the bank,” the bank said.

The debt is already trading at around 53 cents on the euro on average, a steep discount to its face value. The bank expects that it may pay about 50 cents a euro on the bonds, which would translate to an equity gain of about 750 million euros, a spokesman for the bank, Brian Kealy, said on Thursday.

Bank of Ireland is seeking to raise 2.2 billion euros of capital by the end of February to comply with new capital requirements that are tied to the European bailout package.

The bank will attempt to shore up its core capital through a combination of liabilities management, tapping the capital markets and raising funds from shareholders, a spokeswoman from the bank, Anne Matthews, said on Thursday.

How very generous of the Irish taxpayer.

Blatant theft of taxpayer cash.

[notMyName]

(WARNING: Swearing is in the vid)

Tells it how it is.

Edited December 9, 2010 by Reebo