European banks rescue plan agreed

[Schuhart]

I haven't seen much coverage of this. I take it our scheme will now be aligned to whatever has been agreed here.

Is it fair to say that we need something approaching normality to emerge on international markets, notwithstanding whatever problems our banks might have in particular with exposure to property.

[jfk2008]

The story is a bit thin on detail but it seems to indicate that there will be an Irish-style guarantee for inter-bank loans across the eurozone (and possibly in the UK) and a British-style part-nationalisation of certain banks.

[McDave]

I haven't seen much coverage of this. I take it our scheme will now be aligned to whatever has been agreed here.
Is it fair to say that we need something approaching normality to emerge on international markets, notwithstanding whatever problems our banks might have in particular with exposure to property.

This is good news. I think our government will indeed have to revisit it's blanket guarantee, and implement something more like what the UK and the Eurozone have agreed (including the state shareholding element which they have resisted up to now).

[McDave]

Based on his comments on the 9'o'clock news, it looks like Cowen is indeed proposing to follow the UK model.

[wysiwyg]

It's a bloody disaster for the ordinary citizens of the EU... Governments have given each other carte blanche to bail out reckless banks across the Union..

Screw the banks.. nationalise the lot of them, and let the ECB take over the whole banking system... they couldn't be worse than the shower of chancers that have been in charge up to now...

[Fr. Hank Tree]

Based on his comments on the 9'o'clock news, it looks like Cowen is indeed proposing to follow the UK model.

Really? I could have sworn he said something about not investing in banks and spending government money?

According to RTE "Using taxpayers' money to buy bank shares, effectively a part nationalisation, would be difficult for the Irish government, which is attempting to plug a €15bn hole in the budget on Tuesday.

It is believed that Ireland would argue for any such scheme to be voluntary."

I don't think Mr Cowen is too keen on doing things the British way at all!

[Fr. Hank Tree]

Edit: apologies wysiwyg, completely misread your post.

[wombat]

Before any tax money is put into the Irish banks, the govt' needs to force a takeover by the strong of the weak and decide what of the remainder can be merged. Spreading the pension reserve too thinly is like p.. ing in the wind. Hopefully, the Central Bank has figured out by now what is worth salvaging and will concentrate on it/them.

[wysiwyg]

Edit: apologies wysiwyg, completely misread your post.

I take it you were in agreement with me so...

just add to my reputation

[McDave]

Really? I could have sworn he said something about not investing in banks and spending government money?
According to RTE "Using taxpayers' money to buy bank shares, effectively a part nationalisation, would be difficult for the Irish government, which is attempting to plug a €15bn hole in the budget on Tuesday.
It is believed that Ireland would argue for any such scheme to be voluntary."
I don't think Mr Cowen is too keen on doing things the British way at all!

He said something along the lines of operating within the agreed European template, but not putting up any cash for now. This could be interpreted in many ways. However, I don't think he'd be able to repudiate on the news what was passed by the Oireachtas last week (BTW he didn't actually reiterate on the news the Irish solution of last Monday). I guess we'll have to wait for the precise details over the coming days.