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Thread: How will the Government break up the nationalised banks so that they aren't systemic

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    Default How will the Government break up the nationalised banks so that they aren't systemic

    How will the Government break up the nationalised banks so that they can no longer be of systemic importance? Will we have regional banks limited to a number of counties? Will there be limits on the number of customers each bank can have?
    If this is not sorted there is nothing to stop it happening again

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    Quote Originally Posted by charley View Post
    How will the Government break up the nationalised banks so that they can no longer be of systemic importance? Will we have regional banks limited to a number of counties? Will there be limits on the number of customers each bank can have?
    If this is not sorted there is nothing to stop it happening again
    Well now that we own a large part of AIB, I am going to be sending them lots of incrementally increasingly hostile letters of reminders that unless we receive €6 Billion by close of business on December 31st this year, we will have to foreclose on them.

    Any additional legal fees will be made payable by them on demand etc.

    A week before Christmas I will start phoning them as well and asking them to come into the NTMA HQ for a "chat".
    “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.” - Friedrich A. Hayek

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    Politics.ie Member seabhcan's Avatar
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    Quote Originally Posted by Cassandra Syndrome View Post
    Well now that we own a large part of AIB, I am going to be sending them lots of incrementally increasingly hostile letters of reminders that unless we receive €6 Billion by close of business on December 31st this year, we will have to foreclose on them.

    Any additional legal fees will be made payable by them on demand etc.

    A week before Christmas I will start phoning them as well and asking them to come into the NTMA HQ for a "chat".
    Excellent.

    When they call you back, be sure to tell them the call will be recorded for training, and then that all your operators are busy dealing with other banks.

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    Politics.ie Member seabhcan's Avatar
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    It looks like the job of reforming and selling the banks will fall to the Labour party and FG after the next election.

    I imagine they don't know what to do yet.

    I would like to see the commercial and personal customer aspects of banking split. I think for the next few decades, commercial banking should remain in state ownership until we figure out a way of regulating it. If we have to pay for the risk, we should take the profit.

    For personal banking - some new limits on mortgages should be imposed - minimum of 15%-20% deposit required. And the central bank should be mandated to use mortgage regulations to keep house price inflation within the 2% Eurozone inflation limit.

    On the commercial side, I'd like to see personal director guarantees for limited companies made illegal. Our commercial banking system currently runs on guarantees, and their sole purpose is to bypass the logic of limited companies and allow banks to make foolish decisions not based on the soundness of the business in question.

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    Politics.ie Member adamirer's Avatar
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    Sure NIB wasnt systematic, we still bailed that out. Size doesnt matter...

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