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Originally Posted by draiocht23  To my mind, the political ramifications of nationalisation are the only reason the government refuses to entertain it as a method to resolve our banking crisis.
If banks were to be nationalised shareholders would be wiped out, utterly. While shareholders have already lost the shirts from their backs there remains some slight hope that NAMA, if it works, could see share prices somewhat restored.
If banks were to be nationalised this hope would dissipate and the tens of thousands bank shareholders, all over the country, would be loathe to ever forgive the government that ruined them. FF's electoral fortunes would be destroyed for years to come - even though they would have acted in the best interest of the country.
So, when you hear FF Ministers say they are willing to take unpopular decisions for the greater good - treat what they are saying with a large grain of salt.
This government will never nationalise - even though it has conceeded that NAMA will necessitate the State becoming a majority shareholder in all of the banks - purely for political reasons. |
The government do not care about bank shareholders, nor should they. Their concern is with international bondholders. If the banks are nationalised and these bondholders (funds, banks etc.) are burned then they will not be buying Irish government bonds in the future. One thing Ireland need at the moment is a market for Irish government debt.
Without this market, Lenihan would have to go cap in hand to the ECB and the honest German folk would lend us money but would not want to see the
FF corruption continue as a result. Lenihan does not want to stop the gravy train, even though it has been slowed recently.