In a statement released to the stock exchange, AIB said it needs 1.5 billion more capital. They will fund this by selling off some assets and going to the stock/bond markets. I wonder what this means for our other banks?
<Mod> This thread has been merged with "AIB May Sells Assets to Boost Capital". </Mod>
Last edited by stringjack; 20th April 2009 at 03:38 PM. Reason: Merged thread.
Dripfeed recapitalisation.
This is really getting worrying, it's looking like the state could be bled dry by these organisations. What's the likelihood AIB, or some of the weaker banks won't be able to raise €1.5bn and will come back crying to Biffo looking for more cash ?
had to laugh at the conflicting covrage of this.
on the one hand you have the state broadcaster, RTE , bringing on some economist thats telling the nation the 1.5 billion is coming from the state.
on the other you have connor brophy on newstalk actually talking about the statement saying its going to come from AIB flogging a bank they have a 20 odd % share in in america. they even name it, M&t , which is valued even now at 1.62 billion.
considering the share price has shot up by 15% on the back of a story i wouldve sworn blind would see a drop of a similar amount i think newstalk has got the real story here.
thats NOT to say AIB mightnt be looking for more gosh in the future but this sounds more like theyre flogging what they have as opposed to looking for a hand out.
it means fire sale for "some assets" and hefty discount of stock price if they stand any chances of getting any subscription at all.Originally Posted by Digout
it has essentially nil effect on "other banks". it only means that the taxpayers may be able to keep their money for another 6 months or so before they are required to spend it to save a delayed but certain failure. Remember, AIB and BOI are no longer with us in reality.
"A good liar must have a good memory. Kissinger is a stupendous liar with a remarkable memory." - Chris Hitchens
M&T banks after taxes etc is worth c 500m. Chicken feed.
Probably Polish operations too?
And yet the top management hangs on.
No shame in this countries management classes.
Its only a chat, we ain't the world council.
In 2000 the Women's Institute in Britain gave Tony Blair the slow hand clap to demonstrate their contempt.
[COLOR="Red"]It was dignified, restrained and effective.[/COLOR]Doesn't Bertie deserve the same scorn. No shouting, no abuse, no agression just a relentless slow clap whenever he speaks in public would be enough to end that man's presidential fantasy.
-3.75,-3.23
There's a lot of assets that they could sell -
AIB UK is pretty free standing - strong mid market business banking outfit
M&T USA
WZB Poland
...
but any of these sales would contradict their previous corporate strategy ... and that should mean that Eugene Sheehy, ex union member will resign. What AIB badly needs are serious job/paycuts , right now it is almost as over paid/staffed as the public sector
cYp
"Yawn , am I alive yet ?"
And yet the top management remains in place.
No shame or accountability demonstrated, yet again.
Its only a chat, we ain't the world council.
In 2000 the Women's Institute in Britain gave Tony Blair the slow hand clap to demonstrate their contempt.
[COLOR="Red"]It was dignified, restrained and effective.[/COLOR]Doesn't Bertie deserve the same scorn. No shouting, no abuse, no agression just a relentless slow clap whenever he speaks in public would be enough to end that man's presidential fantasy.
-3.75,-3.23
LinkBack URL
About LinkBacks
Reply With Quote