Do Fianna Fail have the balls to completely Nationalise the Banks?

[kellsangel]

Do Fianna Fail have the balls to completely Nationalise the Banks?

It is my opinion that the banks could not survive the trauma of a 20% contraction in our economy. Such a contraction would throw up to 200,000 more out of work and wipe out the construction industry.


Would Fianna Fail completely nationalise any bank with a broad base of ownership of its shareholding amongst voters?

Me thinks that they would leave some portion of the company to the shareholders even if losses exceeded the tier one capital of a particular bank.

Does this make shares of the remaining big bank a great buy?

[slx]

The construction industry has already been wiped out. Other than a few projects that have to complete, it is over. There is zero investment in construction at the moment.

What good would nationalising the banks do?!

[kellsangel]

The options are:

1 do nothing

2 give the banks more soft loans

3 nationalise and wipe out share holder value completely

[Swingingdoor]

Nationalsied banks actually work.
Just take a look at your local credfit union, owned and run by the people for the people and not for hungry bankers and builders

[ManOfReason]

Nationalsied banks actually work.
Just take a look at your local credfit union, owned and run by the people for the people and not for hungry bankers and builders

Yes, lets take a look at the investment experts running credit unions:


Complaints against financial institutions on the rise - The Irish Times - Thu, Jan 15, 2009

"The largest award was for €500,000 to a credit union which made a “worthless” €1 million investment in a “wrap-around” insurance bond recommended by its broker.

The ombudsman’s investigation included an oral hearing because of a conflict of evidence between the credit union and the broker. He ruled that the broker had breached his duty of care by failing to advise the credit union of the risk of total loss of capital on the investment and making an inadequate presentation of the product.

However, he accepted the broker had acted in good faith and was not negligent. Mr Meade said he wasn’t impressed by the actions of the broker or the credit union, the members of whose investment committee had signed up for the product blind, without reading the brochure.

I'd say there is plenty of incompentence to go around.

[onthefence]

I hope not because the politicians/civil servants would be completely out of their depth. Instead leave it to the proffesionals to do their job, namely;
Office of the Director of Corporate Enforcement (ODCE)
The Stock Exchange enforced better governance rules,
Financial Regulator and
Central Bank to do their job.

I believe that would be enough politicians/civil servants interference.

[nuj]

Do Fianna Fail have the balls to completely Nationalise the Banks?

FF is welcome to them.

It's the State I'd be worried about.

[Duth Ealla]

No FF do not have the balls or the imagination to nationalise the banks or even to consider whether its an appropriate action.

Nationalisation of the banks is no longer an ideological discussion but rather a valid way keep the credit flowing and solve or at least mitigate the circumstances we find ourselves in.

Willem Buiter makes a good case in the financial times as to why nationalisation has merit for protecting the banking system i,e why its of systemic importance but also Krugman highlights why the full nationalisation route needs to be done with some steel lest it do more harm which is applicable in the case of treating Anglo as a bad bank.

That being said its just an option but it should be considered without an ideological prism.

[Dreaded_Estate]

I don't think they will have a choice.

The banks need capital and no private investor is going to go near them.

[BodyofEvidence]

check out the "lenihan car crash tv"thread and then tell me if u have any optimism left