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Suckers taxed to the hilt to save AIB - bank will pay no tax for 30yrs

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  Suckers taxed to the hilt to save AIB - a bank that will pay no tax for 30 years

http:// www.independent.ie/business/personal-finance/charlie-weston-suckers-taxed-to-the-hilt-to-save-aib-a-bank-that-will-pay-no-tax-for-30-years-35812300.html

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Bankers must be delighted. For them, the taxpayers and consumers are the gift that keeps on giving. And what do they have to give in return? Not much, is the answer.

AIB is about to float a chunk of its shares on the Dublin and London stock markets. Thanks to taxpayers stuffing €21.8bn into rescuing it, the bank has gone from being a financial basket case to a hot investment proposition.

We learned in this newspaper last week that the bank will not have to pay corporate tax for 30 years, because its historical losses can be carried forward.

The bankers messed up and needed a €21.8bn bailout from ordinary taxpayers, but it will not have to pay corporate tax for decades. You could not make it up.

Income taxes on ordinary workers are now €7bn a year higher than before the crash, to say nothing of other charges and levies, mainly to fund the bail-out of the banks. And customers of banks are being treated abysmally, while our regulators stand back and watch.

The Irish banking market is dysfunctional. Some 70pc of the Irish mortgage market is controlled by just three banks - AIB, Bank of Ireland and Ulster Bank. We have some of the highest variable mortgage rates in the eurozone.

Savers here get a raw deal, with the two big banks each paying 0.01pc in interest. That's 10c a year on a €1,000 of savings, before tax.

AIB, as the largest retail and commercial bank with 2.3m retail and SME customers, is the biggest culprit....

....AIB is the big beast in banking here, and so is the pacesetter.

Our regulators, such as the Central Bank and the Competition and Consumer Protection Commission, should hang their heads in shame for allowing a rescued bank to become so dominant.

Those who ran the bank into the ground exited with monstrously generous pensions and other payoffs. Not so for bank customers and taxpayers who have paid, and continue to pay, a huge price for saving AIB.

It is about to embark on a new chapter with the flotation. There will be millions made by banking advisers, retail investors with more than €10,000 to punt, hedge funds and big corporate investors. For the little guys who saved it, the message is thanks suckers.

 

Edited by Saving For a Space Ship

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Before 2002ish, i used to give banks and financials a pass, means to an end and all that.

Post 2008 i wonder if they are more like airlines- whatever money they make in the good times, they loose in the bad.

Regulated banks need to be geavily regulated, heavily capitikised and the pensions if all workers need to sit between the banks solvency and the tax payer. And 20 year claw back for binuses.

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1 hour ago, Freki said:

What the f does the EU has to do with it?

Look and learn

Dublin’s inability to finance the rescues of Anglo Irish, AIB and other smaller lenders ultimately forced it into a €67.5bn bailout from the EU and International Monetary Fund.

https://www.ft.com/content/872500e6-456b-11e7-8519-9f94ee97d996?mhq5j=e1

Although the government initially denied that there were any problems, and cited themselves as "fully funded well into 2011", in November 2010 the government had to seek a €67.5 billion "bailout" from the EU, other European countries (via the European Financial Stability Facility fund [68] and bilateral loans) and the IMF as part of an €85 billion 'programme'. On 28 November 2010, European Commission, European Central Bank (ECB) and the International Monetary Fund (IMF), colloquially called the European Troika, agreed with the Irish government in a three-year financial aid programme on the condition of far-reaching austerity measures to be imposed on the Irish society in order to cut government expenditure.[69] The agreements were signed on 16 December 2010[when?] by the Irish government and the European Commission.

https://en.wikipedia.org/wiki/Post-2008_Irish_banking_crisis

Edited by stormymonday_2011

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24 minutes ago, Freki said:

So, why is Ireland not trying to get the money back from the bank? EU's fault? 

AIB has not got €67.5 billion to repay the Irish taxpayers and probably never will have. As hotairmail has pointed out above the Troika bail out was not to save Irish depositors but French and German banks that were counterparties

 

Edited by stormymonday_2011

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On the subject of EU bailouts it is worth noting that the Greek  debt debacle is still not resolved

http://www.dw.com/en/france-wants-flexibility-for-greek-debt/a-39215027

http://www.france24.com/en/20170612-greek-debt-deal-not-far-says-frances-finance-minister-bruno-le-maire

For those who think it is all love and harmony in Euroland compared to fatally divided Blighty might note that a major  bust up between Macron and Merkel over the way the EU debt relief operates and wider EU reform is very much a possibility over the next 6-12 months. 

Edited by stormymonday_2011

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12 hours ago, hotairmail said:

I think Anglo Irish was even worse was it not?

Stunning amounts for a population of just 5 million.

 

Full repayment for senior Anglo Irish bondholders, despite the fact that the unsecured bonds didn't have to be paid at all:

https://www.ft.com/content/0d16aec2-03df-11e1-98bc-00144feabdc0

 

Who held bonds when the bank was bailed out?

https://order-order.com/2010/10/15/anglo-irish-bondholders-should-take-the-lossesis-the-ecb-forcing-ireland-to-protect-german-investments/

 

 

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20 hours ago, Saving For a Space Ship said:

Savers here get a raw deal, with the two big banks each paying 0.01pc in interest. That's 10c a year on a €1,000 of savings, before tax.

They forgot the extra 39% deduction for Deposit Interest Retention Tax, so it's only 6c not 10c

http://www.revenue.ie/en/additional-incomes/dirt/who-is-charged-dirt.aspx

Savers are indeed treat like DIRT

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17 hours ago, stormymonday_2011 said:

On the subject of EU bailouts it is worth noting that the Greek  debt debacle is still not resolved

http://www.dw.com/en/france-wants-flexibility-for-greek-debt/a-39215027

http://www.france24.com/en/20170612-greek-debt-deal-not-far-says-frances-finance-minister-bruno-le-maire

For those who think it is all love and harmony in Euroland compared to fatally divided Blighty might note that a major  bust up between Macron and Merkel over the way the EU debt relief operates and wider EU reform is very much a possibility over the next 6-12 months. 

There is a good chance the Greek debt crisis will be going on for many more years.  They cannot pay off the principal.

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9 minutes ago, iamnumerate said:

There is a good chance the Greek debt crisis will be going on for many more years.  They cannot pay off the principal.

The latest is that the Eurocrats want the IMF to tide the debt over until after the German elections in the autumn, and are playing kick-the-can wrt Greek austerity and rollover loans. The IMF (and Greece) want debt relief - from lenders, mainly germany - before any more loans/austerity. (IMO the IMF should be nowhere near the Euro issues,  as its not a single country crisis but a Euro one...)

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1 hour ago, iamnumerate said:

There is a good chance the Greek debt crisis will be going on for many more years.  They cannot pay off the principal.

The idea is to extract wealth from Greece by making sure they are forced to sell their state assets to well connected corporates and finance sector interests.  Then they can be milked for rent ad infinitum.

They should just have gone 'cold turkey' and defaulted at the start but wanting to remain in the Eurozone really screwed them over.

 

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I had alot of savings with Anglo irish in 2008 so I have mixed emotions about this...yes the Irish tax payers are being shafted but ordinary savers were protected.

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