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Posts tagged ‘Dublin News’

Dublin:Man gunned down in front of his young son

Willie O’Brien (32) was hit in the chest, shoulder and hand when a gunman opened fire on him at Beechfield Rise in Ongar, west Dublin, at around 10am yesterday morning.

He was rushed to Connolly Hospital in Blanchardstown where he underwent surgery to remove bullets, one of which was lodged in his abdomen.

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Gardai say the high level of organisation involved in the hit means they are investigating an attempted murder.

“You could only think this was meant to be a murder when you see the evidence such as the type of weapon involved and an organised getaway,” said one source.

HANDGUN

It is believed that a 9mm handgun was used in the shooting and that O’Brien opened the door to the gunman and shut it when he realised his life was in danger, but the gunman fired through it before fleeing.

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Man shot in stomach in West Dublin

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After the shooting, the gunman escaped in a silver Ford Galaxy car that was later found burned-out in the nearby Phibblestown Woods estate.

Investigators believe the gang switched to another car in this quiet cul de sac and made their getaway.

Meanwhile, O’Brien’s family has said he was shot in front of his young son in the attack.

“He was shot in front of his young lad. It’s just not on,” said one man at the family home in Dublin city centre.

A family friend said that O’Brien’s mother was too distressed to talk.

One theory being investigated is that O’Brien was targeted by a major Dublin criminal 
who was monitoring his movements.

O’Brien’s car was also previously burned-out when it was parked outside a friend’s house in East Wall in June 2010.

Neighbours in Beechfield Rise said O’Brien largely lived a quiet life, not drawing attention and getting on with life with his partner and child.

Three bullet holes at chest and body height could clearly be seen in the glass panes of the front door, with a fourth bullet going through a side glass panel at knee height.

In a separate unrelated shooting incident yesterday, two homes were struck by gunfire in Rathmines.

Nobody was injured in that incident but a baby escaped unharmed.

cfeehan@herald.ie

Irish Independent

– See more at: http://www.independent.ie/irish-news/news/man-gunned-down-in-front-of-his-young-son-30401179.html#sthash.H8dO8DIF.dpuf

What Brian Lenihan and Cowen doesn’t want you to know?

Cropped picture of Vincent Browne from Flickr

Image via Wikipedia

Anybody who didn’t see tonight with Vincent Browne should take the time and look at the show now

Want to know how much? Want to know the real figure? Want to know what Brian Lenihan doesn’t want you to Know?

Anybody who didn’t see tonight with Vincent Browne should take the time and look at the show now

link http://www.tv3.ie/shows.php?request=tonightwithvincentbrowne&tv3_preview=&video=29656

One way of looking at the problem

The Irish are a nation of gamblers. The country may be struggling with the burden of a huge government deficit, soaring borrowing costs and a deeply damaged banking system, but it would be dangerous to bet against Dublin winning its high-stakes game of poker with the European Union over a possible bailout.

Ireland’s aim is to secure a deal on the most favorable terms, including, crucially, the retention of its ultralow corporate-tax rate, a potent symbol of economic sovereignty that the minority Fianna Fail government is determined to protect at all costs ahead of next year’s likely elections.

Dublin still has the strongest hand. The first thing in its favor is that no one can force it to accept a bailout; Ireland has to ask the European Union for help. And given that the Irish government is fully funded until the middle of next year, it can in theory drag this situation out for months. If it did that, of course, contagion would likely spread quickly across the euro zone, as Tuesday’s stock and bond selloffs showed, threatening the survival of the common currency. In that sense, Ireland is armed with a nuclear weapon.

In contrast, the EU is armed only with bows and arrows. There is very little it can do to force Dublin to seek an early bailout. The one pressure point is Ireland’s banks, now able to survive only thanks to European Central Bank funding. But so long as the banks are still able to post eligible collateral, the ECB has little option but to continue accepting it, even though its lending to Ireland now totals €130 billion, equivalent to 80% of Irish GDP, much of it in the form of Irish domestic mortgage-backed securities specifically created to meet the criteria for the ECB’s lending facilities. If the ECB were to impose an arbitrary limit on Irish borrowing, it could spark panic across the euro zone.

This game is due to be played out over the rest of this week, with European Union and International Monetary Fund officials descending on Dublin to thrash out a deal. Ireland has signaled it is willing to consider a deal to recapitalize its banks, allowing them to borrow again in private markets.

That suits the Irish because it enables them to claim the government itself remains solvent and so shouldn’t be subject to any external fiscal oversight that might put its tax arrangements at risk. Legally and practically, this argument is nonsense, because any bailout needs to be channeled via the government, giving the lenders the right to impose any conditions they wish.

That may point to an extended standoff between Ireland and the rest of the EU. If so, this crisis simply would be following the path of every other period of stress over the past three years in Europe and elsewhere. But eventually, the market will succeed in pressuring policy makers into the response it is seeking.

In this case, the market wants Germany and the other leading European economies to agree a quick deal to assist Ireland and, if necessary, Portugal, and it wants reassurance of what will happen to the bonds of bailed-out countries after 2013. In this scenario, Ireland can afford simply to stand firm and wait for Germany inevitably to fold.

Write to Simon Nixon at simon.nixon@wsj.com

Comment:

Simon, one way of looking at the problem!

Bare-Faced Lies comming from the Goverement!

The cover of Irish electronic Passports as of ...

Image via Wikipedia

http://www.bloomberg.com/video/64569080/

It is a demonstration of lack of creditability in our own politicians when we have to resort to scouring the internet to get to the truth about our countries financial position.

We are being openly lied to, yes bare-faced lies, Lenihan and Cowen are living in a fantasy world of their own and the bunker mentality is obvious to see by all !It is akin to the last days of Hitler in the bunker in Berlin  Cowen and lenihan will not hear of talk of surrender to the Europeans

They have betrayed our people and have brought us down the road of destruction and they should be brought up on charges of economic terrorism

Lenihan and Cowen are in denial and we the people are paying the price for having absolute incompetent people in Government .This government has destroyed the good name of Ireland and they are no better than the mafia.

The country has been driven into the ground and the lies coming from Cowen and lenihan are an Insult to the people of Ireland. The Bailout is coming and no amount of spin is going to change that fact

Whatever Cowen and lenihan eventually call it ,we will be depending on the kindness of strangers and as far as I am concerned the government are a bunch of traitors !

On Newstalk radio program this morning Lenihan conceded that the IMF were on their way and will be here in Ireland tomorrow along with the EU and god knows who else to “see the books” meanwhile In a blow to Ireland, LCH Clearnet Ltd. raised the margin requirement for Irish bond trading to 30 percent of net positions, making it more expensive to buy Irish securities.

This Minster is totally incompetent and should be removed along with the rest of the political vultures infesting the Dail

Irish Bonds are now junk along with the Bank shares and Irish bonds slipped for a second day yesterday , pushing the 10-year yield up 5 basis points to 8.51 percent. The extra yield over German bunds rose 6 basis points to 567 basis points. The Dublin consultations with the ECB, European Commission and IMF tomorrow will “see if the state is able to cover the needs of the banking sector,” Belgian Finance Minister Didier Reynders told reporters today. “If that’s not the case, there will probably have to be a European intervention.”All of this is political waffle and in the end it all means that we are going to have to be bailed out !

listen to Morning Ireland  http://www.rte.ie/news/player.html

They have sold us out !

The crisis comes to pass

Posted: By Gavin Sheridan

of  www.thestory.ie 

We have warned time and time again that Ireland was facing a massive fiscal crisis, both on here and on Twitter. We took a look back through the archives to see what we might have called right over the last number of months:
September 11, 2009: ‘A floor in the market’
We questioned just how much nonsense Finance Minister Brian Lenihan spoke in September 2009, where he argued that Ireland had neared the floor in the housing market. Of course, NAMA set its floor in November 2009, and prices have fallen ever since – leading to yet more losses for the taxpayer. We quoted him:
“If a flood of property is dumped on the market, it will be utterly unsustainable. That is one of the reasons we must establish NAMA and try to establish a floor in the market. We are very near it on the basis of the figures and data we have about the yield from property. The yield is at an all time high relative to the assets, which is a clear objective economic indicator that we are approaching the trough. We must banish our devils, the suggestion that we have further to go. That is part of the problem and the reason for the illiquidity in the housing market.”
There is no doubt that everything said there was a fiction, and it was patently obvious at the time.
December 24, 2009: Morgan Kelly on how we got here
Morgan Kelly published a paper at Christmas 2009, in which he outlined the looming bank crisis and the coming massive mortgage crisis. It was universally ignored. We highlighted it at the time:
I can’t really add much to Mr Kelly’s excellent analysis. What it says to me is that the next 12 to 18 months are going to be among the most difficult, if not the most difficult, time this country has faced. I encourage everyone to read the entire document.
I will emphasise his conclusion:
Despite having pushed the Irish state close to, and quite possibly beyond, the limits ofits fiscal capacity with the NAMA scheme, the Irish banks remain as zombies whose only priority is to reduce their debt, and who face complete destruction from mortgage losses. The issue therefore is not whether the Irish bank bailout will restore the Irish banks sothat they can function as independent commercial entities: it cannot. Rather it is whether the Irish government’s commitments to bank bond holders when added to its existing spend-ing commitments, will overwhelm the fiscal capacity of the Irish state, forcing outside entities such as the IMF and EU to intervene and impose a resolution on the Irish banking system.
February 4, 2010: The Coming Crisis?
It might be news to some people, but the purchasing of Irish bonds by Irish banks was highlighted a long time ago. We highlighted along with many others that Irish banks were buying Irish sovereign bonds and using them as collateral at the ECB. We also emphasised that Ireland was in as worse, if not a worse state than Greece – just that the markets had yet to pay attention to Ireland:
If you thought all of the problems had been sorted, then think again. There are really big problems coming down the road, and very few people seem to be talking about them. So let’s look a little closer at the potential fiscal problems Ireland, and our banks, face.
Everyone is talking about Greece right now, but to me Ireland is no different. It is probably worse. So with these deadlines looming, what is happening? Over the past number of weeks you might have noticed various headlines to do with NAMA delays. Why is this important? Could it be that unless the banks can transfer these junk ‘assets’ from their books, they could face funding difficulties on non-ECB markets?
I could well be wrong, or even cynical, but my feeling is that banks are desperate to get this stuff off their books, in order to be better able to fund themselves after the ECB shuts the discount window. If they don’t get them off their books, and onto the backs of the taxpayer, the banks could simply end up going to the wall, or simply being nationalised.
If you’ve read Morgan Kelly’s excellent analysis of the Irish credit bubble you will be aware of the Irish banking system’s over reliance on international money markets for funding. When the financial crisis hit in September 2008, these money markets froze and Irish banks struggled to get day to day funding. This is what ultimately led to the bank guarantee, and to the opening of what’s called the ECB discount window.
Banks all over Europe were struggling with funding, so the ECB essentially enacted emergency measures to help fund the banks. Irish banks were one of the biggest beneficiaries of the discount (the interest rate charged by the ECB is sometimes called the discount or repo rate). Ireland’s banks have effectively been kept on life support by the ECB since 2008, as McWilliams also noted last year. Essentially Irish banks were buying NTMA-issued sovereign bonds with short-term lending, presenting that as collateral to the ECB and then borrowing cheaply from the ECB. Summed up here – 25% of our deficit in most of 2009 was indirectly funded by the ECB.
When you combine the shutting of the discount window, with the delays in NAMA transfers and ultimately our own State borrowing (indeed we have already borrowed €6.5bn so far this year – 33% of our bond issuance for this year was done in January) and with the likely writedowns of not 30% but 50% on the loanbooks, we are facing a serious crisis. And of course the other factor is the ECB raising interest rates at a time we need them to stay low.
My questions is this: how are we going to pay for all of this?
February 22, 2010: Delay and Pray
This actually sums up how the Irish banks, especially Anglo, have been dealing with our property developers. Rolling over interest, not writing down the loans, not crystalising the losses, doing repayment deals with developers – to drag it out – extending and pretending.
Here it is in a nutshell: NAMA is one massive “Delay and Pray”.
Given that our banks are insolvent, that they are facing massive liquidity issues with the imminent closure of the ECB discount window, they cannot keep the pretence of extending and pretending up forever – and NAMA is, or was supposed to be, the answer to their prayers. You could also argue that Bank of Ireland recently changing its fiscal year was part of this tactic.
The Government would take the crappy loans from the banks (rather a lot), and through some financial voodoo, the losses would still not be crystalised, and rather ingeniously – the debt would not appear as sovereign debt for Ireland, or as debt for the banks, but would instead be dumped into this NAMA bad bank.
And NAMA has one sole purpose – keep the pretence going that someday, somehow, the value of the underlying assets will return to peak prices. Delay and pray. Do not write down the loans. Do not accept the reality of the losses. Do not pass go.
Not only is it unlikely that this will happen, it is almost impossible. Morgan Kelly wrote in December that it could take 50 years for the underlying assets to return to 2006 prices. Last week, in the High Court, we saw development lands being written down by 60% to 98% (in terms of valuation, not borrowing). These figures are the reality of the lands that NAMA is taking charge of. And we are overpaying already. How long do you think it will take rezoned agricultural land bought for €13m at peak, revalued at €600,000 in 2010, to return to €13m? The answer is: it won’t. So much land was rezoned that there is no necessity for rezoning for a further 70 years in many counties. Add to that the 300,000 vacant properties. Add to that little demand. Add to that zombie banks unable or unwilling to lend.
This is the reality of NAMA. Delay and pray.
It logically follows that where the banks lent money with no obvious collateral to back the loan, and where the supposed value of derivative is now zero, the bank sustains a massive capital loss.
However the banks are simply delaying and praying until NAMA takes over the loans, and then NAMA continues the praying.
We are in for one hell of a fiscal mess.
If you hear spin that no one saw this coming, don’t listen. There were plenty of commentators and plenty of warning signs. Unfortunately many people chose not to listen.

Comment:

I too have been warning about this now for the last 20 months and it is  with great sadness that I now see come to pass, my worst fears although I believed we would have been past the worst by now the establishment of the greatest fraud in Irish history (NAMA) has in fact help postpone the worst effects of the now oncoming second phase of this financial disaster yet to be faced by Irish people.

The Current economic terrorists in the Department of Finance have successfully placed private debts of a Golden Circle on to the hard pressed shoulders of the Irish people and they have helped these same gangsters whisk away their ill-gotten gains all across the world .They have also compensated some of them by promising to pay them a salary of up to 200,000:00 Euros a year .This is sheer madness!

Why is nobody doing anything about this crazy stuff? Anywhere else in the world these gangsters would be in jail!

We the Irish people have seen out rights enshrined in the Constitution trampled all over because of political expediency, we have been lied to and robbed by people whose job was to protect the and uphold the constitutional rights of all the citizens of Ireland. Instead they have blatantly placed the financial welfare of a select few above the welfare of the nation and are in the truest sense traitors

They have betrayed the trust of people of Ireland and must be removed from office

A general election is desperately needed now and only candidates that promise to bring these traitors to justice should be voted into office.

Sadly the established political parties are remaining quite on this particular point and there are no calls coming from them to prosecute their colleagues in the Dail

Last night on Front line Pat Rabbet hinted that he would consider going into power with the Green Party

These are the same gutless gangsters that have sold out on every one of their own core values just to stay in power with the current government. Let this be a reminder why we need to have a complete change in the political system unfortunately none of the established political parties want to bring about this change, as it would be akin to asking Turkeys to vote for Christmas they are part of the dysfunctional political system we are saddled with and cant wait to get their hands on the lucrative perks and pensions heading there way by default  .

Ireland defaulting???

Ireland defaulting???

As I sit writing this I am getting news over the wires that the Irish government have asked the EU for emergency funds Ireland was in talks to receive emergency funding from the European Union, but Dow Jones Newswires reported the Irish Finance Ministry as stating it had not applied for EU emergency funding ,but sources within the department insist that talks are ongoing .Just on Bloomberg,  Ireland is being urged by European policy makers to take emergency aid to contain a debt crisis rattling their markets, according to a person briefed on the discussions.

video link http://uk.reuters.com/news/video?videoId=164092013&newsChannel=GCA-WeekendTopStoriesUK

In a conference call of European Central Bank officials Ireland was pressed to seek outside help within days, the person said on condition of anonymity. Separately, a European Union official said a request for assistance was likely even as Irish Finance Minister Brian Lenihan told RTE Radio that such a call “makes no sense” as the government is fully funded to mid-2011.Events are now been played out and lenihan is now been ignored and sidelined.

This means Ireland will be joining Greece with the begging bowl  and we are in effect defaulting .Lenihan and Cowen have lost all credibility  and the country should now have a general election in order to establish some sort of thrust from the markets

The current government is now dead in the water as nobody can believe a word they say.

He could be talking about Ireland

I agree we need to be concentrating of  industrious business ,why can’t I but Irish made shirts, shoes, Irish made bicycles, for god sake Irish made anything?

75% of our business here in Ireland is services, and we are now been forced to become debt servicing junkies by Cowen and his cronies.  

Unless we get up off our collective backsides we will be forced to vote in twiddle dummer when we get rid of twiddle Dee

http://www.youtube.com/watch?v=Kja5aCYuocU&feature=player_embedded

Cowen as guilty as Sean Fitzpatrick

  Top Bankers and the Minister of Finance were told of the impending dangers and the outright reckles lending that was been done  by the Banks and their  institutions, the regulator ignored all warnings

Cowen is as guilty as Sean Fitzpatrick

 limerick accountant John Allen tells his story

Ireland Plans More Budget Cuts to Reassure Bond Investors

Brian Cowen, the Taoiseach of Ireland.

Image via Wikipedia

By
LANDON THOMAS jr

The Irish government, in its latest step to salvage its fiscal credibility, said on Thursday that it would step up its program to cut the deficit by proposing 6 billion euros ($8.5 billion) in savings for its 2011 budget.

The adjustment would be part of a package of 15 billion euros in spending cuts and tax increases aimed at bringing Ireland’s deficit — currently 32 percent of gross domestic product — down to the 3 percent level required by the European Union by 2014.

Already struggling to contain perhaps the largest bank bust in Europe, Ireland has found it increasingly difficult to persuade bond investors that it has the ability and gumption to push through such an ambitious deficit-cutting agenda.

In its statement, the government said that such a front-loading of savings — almost double its earlier plan — would bring the deficit down to 9.5 percent next year.

The gap between the yields of Irish 10-year bonds and their German counterparts widened on Thursday to 525 basis points, another record, as yields soared to 7.6 percent. Compounding investor uncertainty is the hard line that the government has been taking in pushing junior bondholders to take losses on their investments.

This has driven many investors to buy more credit-default insurance, pushing the price of insuring Irish debt to a record as well.

“This shows a very strong commitment to getting the deficit down,” said John Fitz Gerald, an economist at the Economic and Social Research Institute in Dublin. “The government wants to make sure and convince the outside world that they will get the deficit below 10 percent next year.”

But without more details on how it plans to make these savings, investors are likely to remain skeptical. Weighed down by three years of a shrinking economy, the government of Brian Cowen, the prime minister, has reached a political nadir, with many people expecting an early election — a process that further complicates the deficit-cutting agenda.

Ireland’s struggle has been mirrored in Greece and Portugal, where governments are facing increasing resistance from opposition parties to public sector wage cuts and tax increases.

Greece’s prime minister, George Papandreou, has threatened to call an early election to round up support for his deficit-cutting plan, and in Portugal the government has just barely succeeded in passing its own plan to bring the deficit down to 7 percent next year. Yields on 10-year bonds in those countries have been soaring this week as well.

Adding to the uncertainty has been tough talk from Chancellor Angela Merkel of Germany that bondholders take a loss on their sovereign holdings, a round of rhetoric that has accompanied attempts by Germany to install new rules and sanctions to ensure that nations that use the euro meet their fiscal benchmarks.

While Greece has already been bailed out, the surge in Irish and Portuguese bond yields has fanned fears that either one might be forced to seek its own rescue and tap into the European Financial Stability Facility to raise money at a more reasonable rate of interest.

Such a move would provide no easy break though, as it would come with harsh conditions that would impose further strictures on economies already deep in the midst of austerity programs.

source http://www.nytimes.com/2010/11/05/business/global/05punt.html?src=twrhp

Comment :

 Our political masters serves  the bond investors and pay lip service to their own people.

they have betrayed their duty to the Irish constitution and should be hounded out of office and brought before the courts for the devastation they have brought upon their own people.

Listening to Newstalk today at lunchtime the message comes over loud and clear our politicians are so out of touch with the ordinary people it has become very dangerous

when a Minster can get a pension worth nearly 6,800,000 Euro after 10 years of service an ordinary person working in the private sector to have the same pension it would have to put  35,000 Euro a month for the same pension

and yet this same minster wants to take 9 euro from an old age pensioner

or yesterday I heard of a driver for CIE paying into a pension fund for 40 years only to get 180 euros a week at the age of 66 years

This is totally wrong ,we must change this system that allows this kind of blatant robbery of the nation’s wealth for the chosen few

This must stop now>

Is it time to let AIB go?

Allied Irish Banks' crest

Image via Wikipedia

Is it time to let AIB go?

namawinelake | November 2, 2010 at 11:51 am | Categories: Irish economy, NAMA | URL: http://wp.me/pNlCf-Kw

It sounds like the kind of decision a family around the death bed of a loved one faces. Though perhaps the comparison isn’t in the best taste, the reality is that the venerable 185-year old bank is facing insolvency and it is only the dogmatic government strategy of maintaining a duopoly of “Irish” banks not to mention over €10bn of public funds and significant ECB funds that is keeping the bank afloat. This entry examines the status of AIB and the cost of keeping it alive.

Firstly for our international friends, AIB is Allied Irish Banks PLC – note the plural “Banks”. It has nothing to do with the biggest failure in Irish corporate history, Anglo Irish Bank which is referred to domestically simply as “Anglo”. AIB was conceived in 1825 with the opening of a bank called Provincial Bank and over the next century and a half merged with other domestic banks to give us the Allied Irish Banks that we know today. Alongside Bank of Ireland it is seen as the rock of Irish banking.

During the property boom in the 2000s the bank was a late participant in the mania but there is evidence that once it arrived at the party it wasted no time in trying to catch up with the existing party-goers. The Minister for Finance estimates that the bank’s remaining NAMA loans are worth 40c in the euro (including long term economic value).

Its most recent set of accounts for the first six months of 2010 show that the bank had assets of €169bn, liabilities of €160bn and capital of €9bn. So it is a huge business in an Irish context but clearly solvent by reference to these results. Unfortunately the results don’t reflect the true condition of the loan assets. The cumulative provision for losses on NAMA loans in the interim results was 26% – that is, the loans were worth 74c in the euro. The most recent ministerial estimate is 40c in the euro. This should result in a further loss to AIB of €5.5bn. But NAMA loans form a small part of AIB’s total loanbook and the company will have some €81bn of non-NAMA loans (plus €4.5bn of €5-20m formerly NAMA loans) once NAMA has absorbed the poison. The cumulative provision on these loans in June 2010 was just €3bn (note 22 on page 83). Given that these loans include commercial property and business lending in a state which has suffered the greatest contraction in GDP amongst developed countries in modern times, I would suggest that provision is utter fantasy.

Like some shady cash-in-hand sole trader, AIB maintain a second set of books under the auspices of the Financial Regulator who in March this year set out the capital requirements for AIB and other banks (the Prudential Capital Assessment Review). In September using this second set of books, the Regulator announced that AIB needed raise €10.4bn by the end of this year. AIB’s strategy was to dispose of some assets and then to raise additional equity underwritten by the State. There is a detailed entry on these capital raising efforts here but in summary the bank disposed of its Polish operation (still subject to approvals) which yielded €2.5bn capital from the €3.1bn sale price and yesterday AIB held an EGM in which shareholders approved the sale of the bank’s stake in US bank M&T which should add €0.9bn to the capital coffers. The bank announced yesterday that it was placing the sale of the UK operation on hold (though there appears to be some back-pedalling on these comments this morning). Unless there is some dynamic between the UK sale and capital that means that the bank still needs €7bn in new capital in the next 60 days. And there is only sucker with that level of available funding that is willing to invest in what is likely to be an insolvent bank, and that’s the government who seem intent on placing just under one half of our National Pension Reserve Fund (that’s the €3.5bn invested in preference shares last year and the €7bn now needed as a proportion of the €24bn funds in the NPRF) in one basket (case) – AIB.

The government strategy seems chauvinistic (“we need a duopoly of Irish banks”), knee-jerked, immoral (not a word you’ll often see on here but taking money from the pension fund to prop up an insolvent bank is flagitious when there are other options to protect a functioning banking system), recklessly risky (one half of the pension fund is “invested” in one company in one sector). AIB should be taken into 100% state ownership immediately, the State should assess the value of any shareholdings in AIB (I expect they are worth nothing), negotiate with the €4bn+ of junior bondholders the company had at June 2010 and assess if senior bondholders might make a contribution to the insolvent bank. Only then should the State assess the systemic importance of AIB and should probably seek a buyer for the rump of that company. Even if the state is left with only one Irish bank so what? We have a Financial Regulator with 520 staff that should be able to regulate a restricted market to combat uncompetitive practices and when the Irish economy recovers other banks may see prospects here.

If on the other hand, we maintain the pretence that AIB is a viable bank then €7bn will need be found in the next 60 days. At the very best we are set to lose €1.8bn if we continue with the madness of the NPRF underwriting a share issue at €0.50 per share when the shares are presently trading at €0.35. With the healthiest Irish bank, Bank of Ireland, having to borrow 3-year funds at 5.875% last week (excluding costs) in a market where mortgages and commercial lending is still available at 3%, the prospects for profitability at AIB are slim in the context of the NPRF’s investment strategy which allows it invest in any market across the globe.

It is time to say our goodbyes and pull the plug.

source http://namawinelake.wordpress.com/2010/11/02/is-it-time-to-let-aib-go/

Comment:

Unfortunately this government is hell bent on holding on to this once trophy bank along with the top notch gangsters and X Politicians at the helm who will not vote themselves out of this sought after gig

Since the Minister of Finance himself says that the still remaindering loans are only worth 40c in the euro this alone tells me that the bank is gone beyond repair, as every one of his pronouncements on figures have been totally out.  I expect that you wouldn’t even get 10 cent on the euro The cost is irrelevant as the down trodden taxpayers are going to pay up.This Bank is dead and powering billions into it is tantamount to treason.

Shut this toxic toilet down now and save us the poor taxpayers a little bit of pain!

Thomas

Residents movement for political change

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