Irish Bank stress tests and the results. Merged threads

[ralphmalph]

Let the fun begin.

Then for afters we can all laugh at Noonans mega bank rescue to trump the fantastic cheapest bank bailout ever (only 110% of GDP and still increasing) of Lenny Henry.

Which has already been undermined by the ECB because they say they are not playing ball.

[ralphmalph]

http://ftalphaville.ft.com/blog/2011/03/31/532856/viva-ovegas/

It is going to be bad as Blackrock who are doing the tests are using mortgage loses in Nevada to work out the losses the Irish banks are going to have to bear.

Somebody in Blackrock has a sense of Irony, using the gambling capital of the world to work out loses in the biggest housing market gamble.

[ralphmalph]

http://www.lvrj.com/business/las-vegas-home-prices-fall-below-2000-levels-118839369.html

Nevada is the number one state for foreclosures and house prices are 60% down on peak.

[ralphmalph]

http://ftalphaville.ft.com/blog/2011/03/31/533216/irelands-stress-test-results/

24 billion quid more or another 14% of GDP.

[R K]

http://ftalphaville....s-test-results/

24 billion quid more or another 14% of GDP.

Potato!

[The Masked Tulip]

Sell off of assets but not at fire-sale prices.

Wonder if assets includes houses in the physical form or in the paper mortgage form?

[okaycuckoo]

Other thread is locked for some reason.

Irish banks formed into two pillars, with the fate of others unknown. Huge sale of assets chalked in. Unclear what will happen to bondholders - alphaville's instant take on the various announcements in Ireland today seems contradictory on that issue (read the full piece to see what I mean):

Deleveraging with asset sales -> more capital required -> more asset sales to finance this capital. Because the state cannot or will not bear the cost. Neither will senior bondholders. And a fire sale will be avoided? Really?

This is only one aspect of the stress tests and Irish government decisions we’ve noted today. It looks like there are plenty more, once we pick our way through the loan loss assumptions – and if there’s anything interesting you see, please put it below in comments.

I wonder how many of those assets are sitting in the UK? Will they be first to go?

http://ftalphaville.ft.com/blog/2011/03/31/533326/ireland-does-the-fire-sale-start-here/

[interestrateripoff]

Potato!

Tomato!

[interestrateripoff]

I'm sure this is the bailout that will end all bailouts. We won't need another one after this.

[interestrateripoff]

http://market-ticker.org/akcs-www?post=183327

IRISH REGULATOR SAYS FOUR BANKS NEED EU24 BLN MORE CAPITAL

Where 'ya gonna get it?

Your entire GDP is $200 billion, more or less. That's about €142 billion Euros, which means that the banks "need" about seventeen percent of GDP infused into them in new capital.

I wouldn't do it. You shouldn't do it. That's insane.

The proper position is to tell the banks to **** off. If this results in their bankruptcy (it will) so what? Toss 'em all out. New bankers will show up; it's called entrepreneurship and it's a good thing, not bad.

If you allow your government to bail these jackals out you're dumber than I thought.

Advice to the Irish: Go drink a pint - or some of that excellent Irish Whiskey - and then show the world that you have a pair of balls and will send these banksters to where they deserve to go.

Dennigers take on it.

[OnlyMe]

Potato!

http://www.youtube.com/watch?v=zGBTrCZObyA

[ralphmalph]

http://market-ticker.org/akcs-www?post=183327

Dennigers take on it.

The problem is the Irish govt is past the point of no return. They have ploughed so much money in, 100 bill, that if they crash the banks now they crash the whole country much. much worse than Iceland. At least the govt there kept cash on hand and had some gold to refinance a new start. The Irish govt has nothing in the coffers they could not even fund a new banking system.

[bendy]

The problem is the Irish govt is past the point of no return. They have ploughed so much money in, 100 bill, that if they crash the banks now they crash the whole country much. much worse than Iceland. At least the govt there kept cash on hand and had some gold to refinance a new start. The Irish govt has nothing in the coffers they could not even fund a new banking system.

not at all,they should still tell the banks and the bondholders where to go. the alternative will only reach the same conclusion,given time.

[okaycuckoo]

http://www.youtube.com/watch?v=zGBTrCZObyA

Haha! Seen itbefore, but made laugh all over again. Thanks.

[blobloblob]

Potato!

http://splicd.com/6aZLLMQc8oc/45/46

[Pent Up]

From sky news:

The Irish government has launched yet another attempt to rescue the country's crisis-hit financial system.

 

Under the restructuring plan, announced by finance minister Michael Noonan, Ireland's banking sector will be made up of "two pillars".

Bank of Ireland, the oldest in the country, will make up the first "pillar".

It is now in a battle to avoid the fate of its competitors as it struggles to remain in private hands.

The government has given it time to raise its own cash and stave off further taxpayer bailouts.

It has been told to sell £26.5bn (�?�30bn) of assets by 2013, but is allowed to keep its Northern Ireland division and the Post Office venture in the UK.

I wonder how many UK properties in arrears it has through the post office? Surely they would be best to offload these first as they are not in Ireland.

The banks' problems are rooted in the massive lending during the country's property boom, and the subsequent crash.

Does the FSA/UK government/ anyone listen to this??

[Charlie The Tramp Returns]

I predict the massive debts and deficits among certain countries ( we know who they are )in the Eurozone will finally finish off the Soviet Socialist Union of Europe. The Germans and their cohorts the French will see their Empire collapse before their eyes. All Empires finally sink into oblivion.

[General Belgrano]

I still think it's worth the Irish selling off some land to the Fukashima authority. Let's face it a influx of 4 million relocated, trained and civilised Japs would solve their problems overnight.

Lets face it. If you had this type of problem in your personal finances you would rent out a room or two

[interestrateripoff]

http://www.guardian.co.uk/business/2011/mar/31/ireland-banks-need-24bn-euros

Ireland's once booming banking sector is to be shrunk by €73.6bn (£65bn) into two "pillar" banks by the country's new government as it seeks to find a way out of the three-year financial crisis that has crippled the economy.

Under a €24bn restructuring plan announced after the markets had closed, the government is taking majority control of all existing players on the Irish high street. The "pillar one" bank will be built around Bank of Ireland, already 36%-owned by the state and now under instruction to find €5.2bn of capital. It will shed €30bn of assets but retain its link with the UK Post Office. The "pillar two" bank will be created out of the troubled Allied Irish Banks (AIB) – which needs €13bn of fresh capital – and the building society EBS.

A third bank, Irish Life & Permanent, until now able to survive without a direct injection of taxpayer funds, needs €4bn. It is in the process of selling its pensions and investment businesses in two stock market flotations. Its retail bank, Permanent TSB, is expected to be folded into one of the two pillar banks.

At least it will be all fixed now.

Well at least the next time the Irish bailout the banks there will only be two of them.