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Thread: Taxpayer up €1.4bn on banking investment to date

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    Default Taxpayer up €1.4bn on banking investment to date

    Probably not one you're going to hear in the media, but the State is making a tidy penny on its recent €7bn investment in BOI and AIB.

    €560m of this arises from the 8% coupon on the Preference Shares, while the remainder arises from the the capital appreciation of the shares on the markets.

    Not bad for a day's work.
    A demagogue is someone who will preach doctrines he knows to be untrue to men he knows to be idiots.

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    Politics.ie Member draiocht23's Avatar
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    This is a notional profit seeing as the banks can't afford to pay out - and will soon have their greasy palms out looking for more cash.

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    Quote Originally Posted by goosebump View Post
    Probably not one you're going to hear in the media, but the State is making a tidy penny on its recent €7bn investment in BOI and AIB.

    €560m of this arises from the 8% coupon on the Preference Shares, while the remainder arises from the the capital appreciation of the shares on the markets.

    Not bad for a day's work.
    Where is the proof of payment or are you refering to theoretical?

    anyhow, you do realise that the credit holiday offered to Mr Carroll by the same banks equates to + €200 Million p.a.

    if Mr Carrolls 'interest holiday' = +€200 Million p.a. and seeing that he is merely 1 developer your theoretical profits wont be long eaten up....

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    Great news. I vote for giving ourselves a dividend. I am concerned the gain will be eaten up otherwise.

    Say a 100% dividend? We owe it to ourselves. We could even set up a decent bank with our dividend, it's enough to get started.

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    Quote Originally Posted by Jock_the_Waster View Post
    anyhow, you do realise that the credit holiday offered to Mr Carroll by the same banks equates to + €200 Million p.a.

    if Mr Carrolls 'interest holiday' = +€200 Million p.a. and seeing that he is merely 1 developer your theoretical profits wont be long eaten up....
    That isn't relevant to the appreciation in the value of the State's investment.
    A demagogue is someone who will preach doctrines he knows to be untrue to men he knows to be idiots.

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    Politics.ie Member Pauli's Avatar
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    Quote Originally Posted by goosebump View Post
    That isn't relevant to the appreciation in the value of the State's investment.
    Perhaps not. Jock was merely pointing out how the mendacious scumbags masquerading as our government will piss the profit away by bailing out one of their close associates. In time honoured tradition.

    Because that's what happens in a gombeen kleptocracy.
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    Politics.ie Member Dreaded_Estate's Avatar
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    Quote Originally Posted by goosebump View Post
    Probably not one you're going to hear in the media, but the State is making a tidy penny on its recent €7bn investment in BOI and AIB.

    €560m of this arises from the 8% coupon on the Preference Shares, while the remainder arises from the the capital appreciation of the shares on the markets.

    Not bad for a day's work.
    What about Anglo?

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    Politics.ie Member Furze's Avatar
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    Quote Originally Posted by goosebump View Post
    Probably not one you're going to hear in the media, but the State is making a tidy penny on its recent €7bn investment in BOI and AIB.

    €560m of this arises from the 8% coupon on the Preference Shares, while the remainder arises from the the capital appreciation of the shares on the markets.

    Not bad for a day's work.
    Rubbish - show the evidence for this.

    Appendix 2 Summary Preference Share Term sheet for each of

    Allied Irish Banks and Bank of Ireland

    (Subject to approval of the EU Commission, Shareholders and Relevant Regulatory Consents)

    Preference Shares

    Form: Perpetual €3.5 billion Core Tier 1 non-cumulative preference shares plus Warrants (the “New Preference Shares”).

    Dividend: Fixed dividend of 8%, payable annually. Dividends payable in cash at the discretion of the bank. If cash dividend not paid, then ordinary shares are issued in lieu at a time no later than the date on which the bank subsequently pays a cash dividend on other Core Tier 1 capital. The voting rights associated with such shares may be exercised from the date the dividend became payable.
    Mammy, get the hammer there's a fly on daddy's head.

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    Politics.ie Member powderfinger's Avatar
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    The 8% coupon can be paid in cash or ordinary shares in lieu.

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    Politics.ie Member Malbekh's Avatar
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    Quote Originally Posted by goosebump View Post
    Probably not one you're going to hear in the media, but the State is making a tidy penny on its recent €7bn investment in BOI and AIB.

    €560m of this arises from the 8% coupon on the Preference Shares, while the remainder arises from the the capital appreciation of the shares on the markets.

    Not bad for a day's work.
    That's a fair point Goose, the interesting element is that €740m appreciation from the rise in the share value. Do we actually have shares in AIB/BOI? I heard on the radio that we have a 25% stake in the banks, but this is down to representation at board level, not anything physical like.

    Can you/anyone clarify that for us? We know the government are desperate not to nationalise the banks, but don't mind taking a majority share like say 49%. Surely all we've done so far is loaned them funds for recapitalisation at exorbitant interest. These loans are more than the market value of the banks, so we can't have received shares in exchange....
    Blessed be the threadmakers.

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