Bank Guarantee Extension?

[Outlander]

Moody's warns may cut Irish bank ratings | Industries | Financial Services & Real Estate | Reuters

Ireland's state guarantee for more than 400 billion euros ($516.2 billion) of liabilities of Irish-owned banks is set to expire in September 2010 but the government is expected to extend it for certain instruments.

I seem to remember that this was a "Temporary Measure"......................

[Outlander]

Lenihan moves to extend bank guarantee deadline - Irish, Business - Independent.ie

Finance Minister Brian Lenihan yesterday published legislation paving the way for the extension of the banking guarantee to cover certain bond issuances beyond the end of the current scheme in September 2010.
A provision in the Financial Measures (Miscellaneous Provisions) Bill amends existing legislation on the scheme to cover certain future issuances of debt securities, with maturities of up to five years.
The European Commission, which was caught unawares by the Government's snap decision to forge ahead with the blanket guarantee last September, has yet to rubber-stamp the extension.

Extrordinary how this slipped under the parliamentary radar without a fight...

[Fides]

Moody's warns may cut Irish bank ratings | Industries | Financial Services & Real Estate | Reuters





I seem to remember that this was a "Temporary Measure"......................

This particular thread died a death very quickly but after AIBs call to extend it yesterday should we? Is it in our interests to do so? What's the worst that can happen if we don't?

[My Beautiful Tomohawk]

The "sinister for lack of finance" could, if he had the balls, blackmail the banks the way they have blackmailed the Irish taxpayer i.e. reduce mortgage interest rates and free up lending to SME's or no extension of the Guarantee in limited circumstances.

Bloody thieves!

[DCon]

The "sinister for lack of finance" could, if he had the balls, blackmail the banks the way they have blackmailed the Irish taxpayer i.e. rduce mortgage interest rates and free up lending to SME's or no extension of the Guarantee in liimted circumstances.

Bloody thieves!

they have no money to lend

May as well ask a heroine junkie who lives on the quays to lend to SMEs

the banks are broke. A busted flush.

[cyberianpan]

The idea behind the guarantee is that there was a toxic uncertainty as to the pricing of development debt. Nama, for better or for worse, is sucking that gunge out of the system

Potential mortgage default should be nothing like as costly... and I'm puzzled for the business rationale behind extension

cYp

[Fides]

The idea behind the guarantee is that there was a toxic uncertainty as to the pricing of development debt. Nama, for better or for worse, is sucking that gunge out of the system

Potential mortgage default should be nothing like as costly... and I'm puzzled for the business rationale behind extension

cYp

Is part of the argument that no one will lend Irish banks money without the guarantee?

[cyberianpan]

Is part of the argument that no one will lend Irish banks money without the guarantee?

Well they need to make that argument... there's good reason why it could be argued that development loans were opaque, systemic and thus hard to price

Absent quality argument from the banks, there ought to be no extension

cYp

[Fides]

Do you think they'll ask anyone's advice this time?

[DCon]

Well they need to make that argument... there's good reason why it could be argued that development loans were opaque, systemic and thus hard to price

Absent quality argument from the banks, there ought to be no extension

cYp

Why would anyone lend the banks money that they may never get back?

The Irish economy is in a deep recession. Mortgage defaults are coming. Massive defaults.

Our banks will not make much money in the future.