Peter Mathews warns that Irish banks still need another €60bn of capitalisation and Peter Mathews calls Noonan’s deal to sell Bank of Ireland stake “i
Peter Mathews warns that Irish banks still need another €60bn of capitalisation, he also calls Noonan’s deal to sell Bank of Ireland stake “idiotic”.
"Deputy Peter Mathews: They gave Wilbur Ross 35% of the bank for €1 billion, when our State paid €5 billion for 15% of the bank. A junior certificate student would know that is stupid."
Bank of Ireland remains the only one of the banks which the State has guaranteed to remain outside our control as we now have a stake of 15% of the ordinary shares.
“Deputy Peter Mathews: I think the survivor bank system needs further capitalisation. In the case of Bank of Ireland it could be €10 billion minimally to get its provisions right so that it can start the sort of work that would follow from the insolvency stuff. I think that AIB will need more, too, as will Permanent TSB. The IBRC issue is being lumped onto the main national debt. In all, we are talking about a minimum of about €60 billion. However, we need people who really understand it and who can, without having to shuffle through opening statements with simultaneous translation, get it across, eye to eye with the other person.”
This news if it is being floated in any serious way should see the immediate resignation of Patrick Honohan as Governor of the Central Bank.
I'll explain why;
'By August 2011 total funding for the six banks by the ECB and the Irish Central Bank came to about €150 billion; the largest of the six, Bank of Ireland, then had a market capitalisation of just €2.86 billion.' 2008
Patrick Honohan in MARCH 2011; 'In March 2011, Central Bank Governor, Patrick Honohan described the crisis as "one of the most expensive banking crises in world history". In September 2011 he said that the banks were now financially sound.'
He made the comments in 2012. Why are we only hearing them now?
In fairness to Matthews he was saying this on the V Browne programme before he even got elected....i rememeber him quoting 90-110 million for to sucessfully re-capitalize the banks and was looked at if he were mad.........
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