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Posts tagged ‘Finance Minister Brian Lenihan’

The rest of the world is telling us what Lenihan wont!

Listen to Brian lenihan still in denial now      [

Allied Irish Banks

what do the Americans think of Lenihans statement ?

Shares of Allied Irish Banks plc (NYSE: AIB) are falling 27 percent in early U.S. trading as the bank seeks additional capital, further diluting current shareholders and putting the bank more in the hands of the Irish government.

Irish Financial Regulator have increased the amount of equity capital required at the bank from EUR7.4 billion to EUR10.4 billion. As a results, Allied Irish Banks is launching a EUR5.4 billion equity capital raising in November, will be completed before the end of the year.

This equity capital raising will be fully underwritten by the National Pensions Reserve Fund Commission (NPRFC) at a fixed price of EUR0.50 per new ordinary share, which represents a discount of approximately 9.4 per cent to the official closing price of an ordinary share on the Irish Stock Exchange on 29 September 2010.

On completion of the equity capital raising it is possible that the NPRFC will own a significant majority stake in AIB.

In conjunction with the capital raise, management and board changes will be made. Mr. Dan O’Connor that he will step down as Executive Chairman within the coming weeks. In addition, the contract of Group Managing Director Mr. Colm Doherty was terminated and he will be leaving before the end of the year.

Place you’r bets on Bank Of Ireland

 

A few months ago, I said that  Bank of Ireland share price would fall  to 55 cent  and even lower down to the 20’s . Any of my followers that took heed of my advice will now be nursing huge profits

Bank in April I warned that the rights issue was a complete rip off and the Government went ahead and purchased 575.6 million shares at €1.80 each. So at this mornings prices we the taxpayers have sustained loss again of 70 % = 402.92 million Euros in 5 months

In any other business these incompetent baboons Lenihan and Cowen  would be kicked out of office  ,Truly monkeys wouldn’t do any worse!

As for the distressed shareholders I afraid there is more bad news on the way .Bank of Ireland I believe ,Is harboring derivatives, and the news  cannot be  good . Anglo and Allied Irish Bank are also in the dog house and nothing will change the direction of the shares until the full facts are known and I don’t mean the banks telling us fibs we need to have an independent audit done on their derivatives trades of which I believe we are looking at 150billion at least in losses

In other words all the banks are insolvent and we are on course for a final showdown with the IMF having to step in and save the day

Shareholders get rid of the toilet paper you are holding.

http://thepressnet.com/2010/04/29/aib-shares-worth-0-60-cent/

http://thepressnet.com/2010/05/20/ponzi-scheme-warning/

http://thepressnet.com/2010/04/26/%e2%80%9cthis-is-a-blatant-attempt-to-rob-existing-shareholders-of-the-merger-holding-of-the-carcass-that-is-bank-of-ireland%e2%80%9d/

http://thepressnet.com/2010/08/11/bank-of-ireland-posts-huge-losses/

overly optimistic Irish Government’s plan

By Sarah Collins in Brussels

Thursday March 18 2010

IRELAND’S plans to bring spending and borrowing under control may require deeper cuts than previously forecast, the European Commission said yesterday, as it demanded that Finance Minister Brian Lenihan take action on public sector pensions and provide more details about plans for further cuts over the next few years.

The commission said in the report that the Government’s plan to slash the budget deficit by eight percentage points over the next four years is overly optimistic and lacks detail. Ireland is currently running a budget deficit that is four times the EU’s limit but has promised to bring it below 3pc of gross domestic product by 2014.

“The budgetary outcomes could be worse than targeted in 2010 and considerably worse than targeted thereafter,” said the report.

“The authorities should stand ready to take additional measures beyond the planned consolidation packages in case growth turned out to be lower than projected in the programme.”

The biggest problem is the Government’s prediction that the economy will expand 3.3pc next year.

The commission’s forecast sees the economy growing by just 2.6pc.

The commission also says there are risks the 2010 Budget could fall victim to spending “slippages”, not least because of injections that could be called in to shore up the country’s banks.

Mr Lenihan did not set aside money to pay for any further cash injections into the country’s banks this year, despite widespread expectations that Allied Irish Banks, Bank of Ireland and Anglo Irish will all require billions of euros.

EU officials said Ireland’s adjustment process will be “rather drawn out” and that emigration and high interest rates on government debt could wear on the economy. The present plans would only stabilise government debt by 2020.

“Specific additional risks relate to the government’s bank guarantees to support the financial sector, which, if called, would lead to increases in deficit and debt,” it says.

It also told the Department of Finance to spell out how it will slash the deficit by three percentage points in 2012 and a further two points in 2013 and 2014 to bring it below the EU’s limit.

The department also needs to provide more data to explain some of its calculations, it adds. Revenue and expenditure projections are “technical” rather than being targets, it says.

“From 2011 on, taking into account the risks to the deficit targets, the budgetary strategy may not be consistent with the (EU) recommendation. In particular, the deficit targets for 2011-2014 need to be backed up by concrete measures and the plans for the entire period need to be strengthened,” the report says.

The call for the Government to strengthen the “binding nature of the medium-term budgetary framework” appears to be a demand for Ireland to make plans beyond the traditional scope of budgets here.

A government spokesman said yesterday that specific extra cuts or tax rises would be announced in relevant budgets, when it would take account of the then-prevailing economic circumstances.

The commission says the Government should introduce more public sector pension reform to improve the long-term sustainability of the public finances.

“The long-term budgetary impact of ageing is clearly higher than the EU average,” the report says.

The report adds that the Government should also consider plugging holes in the budget by widening its tax base. It says the effects of the new carbon tax will be negated by cuts in VAT rates.

“The sharp decline in revenue recorded in the context of the housing market correction and the wider recession has revealed some vulnerabilities of the Irish tax system, such as a narrow tax base and a high reliance on taxing transactions in assets,” the report says. Ireland is one of 20 member states under increased scrutiny by the EU executive for running up a deficit that exceeds the bloc’s limit.

Countries are legally bound to maintain deficits – the shortfall between revenue and spending – below 3pc of gross domestic product and keep gross debt – the amount the government borrows to finance the shortfall – below 60pc of GDP. Ireland’s deficit last year was 11.6pc of GDP, while debt rose to 64.5pc, both above EU thresholds.

In April last year Brussels gave the Government until 2013 to bring the deficit back into line but extended the deadline last December.

– Sarah Collins in Brussels

Irish Independent

Dumb and Twiddle Dee


Finance Minister Brian Lenihan introduced a scheme to provide a free year of pre-school in April’s emergency Budget called Early Childhood Education scheme. But it was revealed that one in six childcare providers had not applied to take part — claiming payments made under the plan were too low.

He said TDs would no longer be entitled to long-service payments or increments but he discovered he couldn’t take the bonus away from TDs already getting it and any new measures would have to apply after the next election.

He announced he would discontinue an arrangement which allowed sitting TDs and senators to receive a ministerial pension but backed down following legal advice.

He proposed to remove the automatic right to a medical card for people over 70. The move enraged tens of thousands of pensioners and the Government backed down

These are just a few blots on the copy book of this Twiddle Dumb and Twiddle Dee Finance Minster

By the end of the year I expect we will get a look at some real clunkers’.

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