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About LinkBacksRatings agency Moody's downgraded ratings on 12 Irish banks today despite government plans to create an asset management company to buy up soured bank loans.
More from The Irish Times.
Ratings agency Moody's downgraded ratings on 12 Irish banks today despite government plans to create an asset management company to buy up soured bank loans.
More from The Irish Times.
That was inevitable when Brian announced they would crystalise the bad debts on the purchase of the toxic assets in the banks. Book value 80-90bn and the government are going to do their own valuation in the coming months with a view to buying them at a heavy discount.Originally Posted by NewsBot
Not sure whether this is another complete bungle by the government or not. It depends on how much succer you put on the banks plans to manage those assets themselves.
In fairness - the banks were always going to be downgraded as Watcher1 said.
Don't think there is any choice at this stage - we need to get the banks balance sheets cleared up. It worked in Sweden so maybe it will work here.
The Moody's downgrade was inevitable and has not properly evaluated the impact of the new assest management agency .... I think the stocks will recover from their hit today in the next few days
I don't know a whole lot about the Irish Bank situation but my gut is telling me that this is not the way to go.
Sweden took over their banks when they had a domestic property bubble burst. Our bursting bubble is totally different.
What was wrong with setting up a new bank from scratch ?
Our Banks are currently insolvent. They are operating illegally and are barely lawful. The sooner we are rid of this baggage the better.
This way the banks and developers get a free ride and countless generations of Irish people are finanacially screwed.
Shame on Fianna Fail. For the Love of God go !!!!
they got HAMMERED at the outset.
as i type AIB BOI and the PERMO are down 32.81% 30.05% and 9.09% respectively.
virtually wiping out the gains of the last few days.
BUT as you guys said this was inevitable and as the stock market has all the self preseveration insticts of a depressed lemming it was painfully predictable.
give it a week and watch what happens. i think it'll boucne back too as the underlying message is the banks ARE facing up to their potential losses and just like when NIB came clean on wrote off a years profit to sort itself out earlier on in the year (which was the last time the banks got a shock like this) i reckon once saner heads prevail this will turn around too.
i havent a fecking CLUE to what level though, but we ARE seeing panic here now.
Let's stop messing about.
Irish governments have been led by Fianna Fáil for 20 of the last 22 years.
The current Taoiseach sat in the hotseat at the Department of Finance and presided over the stoking of the fire which led to the current domestic meltdown. He didn't know what he was doing then (trained as a solicitor, no professional experience outside the Dáil and government), and he doesn't know what he is doing now.
The Taoiseach should fall on his sword and call a general election.
The same standards should apply to a failed Minister for Finance as apply to failed CEOs and failed chairs of profligate banks.
In the national interest, Mr. Cowen should step aside, before we are all queuing for a living.
Sweden is not really an example. There property boom was much smaller than ours. They also had the ability to devalue the kroner and had the helping hand of a steadily growing world economy.
My queries regarding this bailout is who really is going to pay for it. Those development sites are worth about 10% of what they were (if that). Are we assuming the IMF or EU will just give us the money? IMF give loans, not grants. The EU is highly unlikely to completely bail us out. So where exactly is this cash coming from. If to raise a couple of billion in tax they need to massively ramp up personal taxation how on earth can they raise 90 billion?
They claim they will be buying at a heavy discount. I guarantee the discount will be no where big enough. If it was there would be no benefits in the banks taking part as they would be forced to recognise massive losses immediately. Any losses they are forced to recognise will create capital deficits that will have to be filled by the tax payer anyway.
The way I see it is that we have two options 1. bailout from EU / IMF (this must actually be cash with limited strings, not a loan) or 2. national bankruptcy and leaving the EU.
they just write down the loans (mark to market) and let the banks and developers take the hit?
am i missing something here?
"The individual is handicapped by coming face to face with a conspiracy so monstrous he cannot believe it exists.'' ~ J. Edgar Hoover
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AIB and BOI have bounced back to only -8.2%(10c) and -6.74%(6c) respectively. I'll go get PERMO now.
"She'll hold together. Hear me, baby? Hold together!"
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