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Bank Of Ireland, Two Smaller Banks Said To Need $12.7 Billion Of Capital

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http://www.bloomberg.com/news/2011-03-30/bank-of-ireland-two-smaller-banks-said-to-need-12-7-billion-of-capital.html

Bank of Ireland, Two Smaller Banks Said to Need $12.7 Billion of Capital
Three of Ireland’s biggest banks may have to raise a combined 9 billion euros ($12.7 billion) in capital after stress tests are published today, said five people with knowledge of the matter.
Bank of Ireland Plc, the country’s biggest lender by market value, will seek as much as 5 billion euros, said two of the people. Irish Life & Permanent Plc will require more than 3 billion euros, while EBS Building Society will need about 1 billion euros, three people said. The people declined to be identified because the figures haven’t been made public yet. All three companies are based in Dublin
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Listening to R4 this morning and they attribute the troubles to the speculative housing market. Good thing we didn't participate in house price speculation or we would find our banks similarly in trouble...hang on.....

The difference between Ireland and "those other" countries is that we are too big to fail and our debt of £5.2TR is largely invisible to the markets as our credit rating contiues unaffected and sterling remains the world's strongest currency.

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Why not borrow it from Lloyds who can borrow a bit more from their friends?

Lloyds Banking Group is to take a £15 billion loan to enable it to dispose of 600 branches.

The loan, provided by Citigroup and JPMorgan, will be committed for two years and will bridge an estimated shortfall between mortgages and customer deposits of around £20 billion to £40 billion, according to the Financial Times.

The total shortfall is expected to be £20 billion by the time the sale is completed in two years, of which £5 billion will be covered by taxpayer-owned Lloyds.

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They only need (population of ireland) x €85000 per bank.

They only have 6.2M people.

(But ensure that anyone claiming more than one lot of protected €85k paid tax on it all)

So how much money do they really need in total to protect savers?

After all - all the LOANS are on property - so someone will have the assets won't they?

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They only need (population of ireland) x €85000 per bank.

They only have 6.2M people.

(But ensure that anyone claiming more than one lot of protected €85k paid tax on it all)

So how much money do they really need in total to protect savers?

After all - all the LOANS are on property - so someone will have the assets won't they?

its a shortage of cash..the house values matter not, except as an item of some arcane accounting rule.

The reality, is that borrowers are defaulting....that is the cause...not the house values....

Printing is the answer to a shortage of cash....bails out the bankers...course, next year, when houses cost 10x more....nobody can borrow then either...and the banks, with no income, bust again.

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They only need (population of ireland) x €85000 per bank.

They only have 6.2M people.

(But ensure that anyone claiming more than one lot of protected €85k paid tax on it all)

So how much money do they really need in total to protect savers?

After all - all the LOANS are on property - so someone will have the assets won't they?

Yes. Indeed those assets are prime executive housing, some of which has even been completed. All they need to do is to find ~500,000 households able to pay peak prices for them. And who demolish their old houses behind themselves instead of trying to sell them on.

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As mentioned here the EU bailout fund is footing the bill for this one. The Irish govt is clearly out of money. So the German taxpayer now steps up to fund it.

No bill being paid. The German taxpayer is offering a loan to the Irish taxpayer that the German Taxpayer wants repaid in full with interest.

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Well, the loans were advanced to someone. Who paid someone somewhere. You are right in the sense that money is still out there. Someone has the money. Someone has still gotten away with selling over priced property. Many deliberately so.

By printing to make up the shortfall of banks, they fail to cancel out those who won but shouldn't have.

THE WRONG PEOPLE ARE PAYING FOR THIS MESS!

I was in Dublin a couple of weeks ago for work and was talking to the driver taking me across town, who also drives for several banks and developers. He was complaining that he had to wait until 2 in the morning the previous night to pick up someone who had scheduled a trip at 10 PM. It was a the wife of one of the property developers, at a dinner party at another property developers house, where he was just waiting outside for 4 hours. He drives these people all the time, and he says they haven't cut back at all. None of the developers have lost any of their own money and are still living the high life. Kind of sad really.

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No bill being paid. The German taxpayer is offering a loan to the Irish taxpayer that the German Taxpayer wants repaid in full with interest.

They may find reposession tricky, though.

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I was in Dublin a couple of weeks ago for work and was talking to the driver taking me across town, who also drives for several banks and developers. He was complaining that he had to wait until 2 in the morning the previous night to pick up someone who had scheduled a trip at 10 PM. It was a the wife of one of the property developers, at a dinner party at another property developers house, where he was just waiting outside for 4 hours. He drives these people all the time, and he says they haven't cut back at all. None of the developers have lost any of their own money and are still living the high life. Kind of sad really.

this is the point about money you dont have being spent....if nobody stops you just because you ran out, and banks or governments give you more, you aint gonna stop.

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  • 312 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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