Irish Deposit Guarantee Raised to 100K/Government backing Irish banks

SimpleSam06

BuffyBot wrote: »

I've removed the whole article. I assume you haven't had permission to reproduce all of that, and it certainly goes beyond what would be considered fair use. Link people to the article if you wish

Thats alright, I've posted the salient parts in AH anyway.

nlgbbbblth

jmayo wrote: »

I just love the bankers love in we have going here.
Why do I get the feeling a few of you work for BOI.

I don't.

jmayo wrote: »

We see institutions that have made fortunes over the last number of years, had huge share prices and rewarded their top executives with huge bonuses. Some of these are now possibly tottering on the brink and require assurances to allow them to keep trading and not collapse taking what's left of our economy with them.

None of us bankers posting here are 'top executives'.

Therein lies the rub. Banks are staffed by ordinary people just like you. If one goes to the wall, we lose our jobs.

As for huge share prices - plenty of regular investors / customers benefited from them.

jmayo

nlgbbbblth wrote: »

I don't.



None of us bankers posting here are 'top executives'.

Therein lies the rub. Banks are staffed by ordinary people just like you. If one goes to the wall, we lose our jobs.

As for huge share prices - plenty of regular investors / customers benefited from them.

Yeah I guess the executives are too busy what with some of the them or maybe even the ones related to top executives spending their time emailing their friends and other bankers stating that they should move their deposits to Irish banks since us the taxpayers now guarantee them.

Funny you should also mention share prices and who benefits ... It appears that some executives of a certain bank benefited from their share dealings the other night :rolleyes:
Of course they were only supporting their own bank's shareprice, selfless people that they are :rolleyes:

What do our banking posters have to say on either of the two incidents alluded to above?
I guess those type of incidents occurr at the lesser banks

As for being staffed by ordinary people, who do you think work at other companies and in other industries that will go bust without receiving any golden bailouts or guarantees from governments and the state ?

gurramok

If anyone doubted BOI's exposure, here you are:

http://www.irishtimes.com/newspaper/finance/2008/1003/1222959304505.html

Irish banks gave €86bn to developers and it does not include overseas loans.

IT wrote:

PROPERTY LOANS: BY THE end of June official figures showed that Irish banks had loaned €86.7 billion to the Republic’s property developers to fund the construction of housing, offices, shopping centres and a range of other business premises.

Despite a falling market, the figure was around €17 billion, or 20 per cent, more than a year earlier, and the calculation did not include the interest due on these amounts.

The figure also did not include commercial property loans outside the State.

Most of the six banks who have had a proportion of their assets and liabilities guaranteed by legislation passed yesterday have been active in backing the purchase of offices and other commercial premises in other countries.

The markets they favoured included the UK and, to a certain extent, the US and Europe. Property values have been falling in all these locations.

Most recent figures show that 80 per cent of Anglo Irish Bank’s €68 billion loan book, just under €55 million, is secured against Irish and British property. Anglo Irish is a particularly active lender to the commercial property sector.

Bank of Ireland’s loan book stands at €135 billion, 71 per cent or €95 billion is secured against property. Of that figure, its Irish home loans come to €27 billion, while its British mortgages come to €34 million.

This leaves it with an exposure of over €60 billion to other property loans in both the Republic and other markets.

AIB’s loan book tops €150 billion, and 60 per cent of this is secured against property.

The most recent figures show that loans outstanding in the Republic were €71.7 billion, with mortgages accounting for €24.5 billion, leaving a balance of €47.2 billion secured against other properties in the State.

Commercial real-estate loans are made up of the money that banks advance to developers who are buying property, either land or buildings, from which they ultimately intend making a profit.

If the developers are building on the property, or adding value in some other way, that money is also borrowed. So any profits from land speculation are virtually always dependent on property values increasing.

Where banks loan money to developers they are essentially joining forces with them in betting that property values will increase.

Up to two years ago, values in the Republic increased dramatically over a decade, and property markets in the UK and US also boomed between 2002 and last year.

The difficulty is that the markets have turned just as dramatically over the last year or two, depending on the country.

This makes commercial property loans potentially one of the biggest flashpoints on the banks’ balance sheets

nlgbbbblth

jmayo wrote: »

What do our banking posters have to say on either of the two incidents alluded to above?
I guess those type of incidents occurr at the lesser banks

As for being staffed by ordinary people, who do you think work at other companies and in other industries that will go bust without receiving any golden bailouts or guarantees from governments and the state ?

Doesn't matter where they occurred - those two incidents are WRONG WRONG WRONG.

People who work at other companies / other industries = ordinary people too.

If a bank went under do you think its workers would be protected? Would they f*ck.

stepbar

jmayo - your posts smack of a disgruntled former employee of one of the banks. Very little substance and lots of whinging.

gurramok - nice to see you are good at the copy and paste. Would you care to provide us with some analysis?

redroar1942

stepbar wrote: »

jmayo - your posts smack of a disgruntled former employee of one of the banks. Very little substance and lots of whinging.

gurramok - nice to see you are good at the copy and paste. Would you care to provide us with some analysis?

Whereas you're a current employee constantly braying the party line.

I fail to see the difference

stepbar

redroar1942 wrote: »

Whereas you're a current employee constantly braying the party line.

I fail to see the difference

Please let me refer you back to post 108 where I asked you to substantiate your statement. Thank you.

parsi

stepbar wrote: »

gurramok - nice to see you are good at the copy and paste. Would you care to provide us with some analysis?

Lads - why not have a "Copy and paste" duel at dawn ?

Gurramok can copy and paste whatever articles he can find in the public domain and Stepbar can copy and paste whatever relevant bank documents he can find.

And the baying mob can decide who's right.....



(apologies if ye are not lads..)

BuffyBot

Seem as people seem to be unable to keep it non-personal. The thread is closed.

A shame, but please do not say it wasn't clearly signposted.