New Bank Yay or Nay

Fine Gael are proposing scrappin NAMA and starting a new bank....

What say you to this idea?

http://www.finegael.org/news/a/351/article/


Personally I dont think we should be shouldering tens of billions of bad developer loans.....a new bank is the only way to go

Nody

And what would make ANYONE believe that politicans running a bank would be a good idea?

If you think subprime lending was bad only wait until election year when you can get your own half a mil loan with a rusty spoon as security; don't miss your chance and remember who gave you the chance!

the butcher

Nody wrote: »

And what would make ANYONE believe that politicans running a bank would be a good idea?

If you think subprime lending was bad only wait until election year when you can get your own half a mil loan with a rusty spoon as security; don't miss your chance and remember who gave you the chance!

What you on about? What do you think is happening right now?

Labour want to nationalise the 5 other banks in the guarantee = Billions added to our national debt, who pays? Us the taxpayers!

Fianna Fail want NAMA to buy the bad debts at a reduced rate and try sell them off. So many problems with this tripe..Who pays for that? Us the taxpayers!

Fine Gael want to set up a new bank. This does not involve burdening taxpayers with the problems of the other banks.

Anyone with a brain would set up a new bank clean of the mess of the other banks. Otherwise you have a vested interest in keeping the other zombie banks and want to enslave all of us to a decade+ of debt. No thank you!! I do not want my tax going towards corrupted slime!

Nody

the butcher wrote: »

What you on about? What do you think is happening right now?

I never said the current state was some how ideal or wanted either.

the butcher wrote: »

Labour want to nationalise the 5 other banks in the guarantee = Billions added to our national debt, who pays? Us the taxpayers!

Correct!

the butcher wrote: »

Fianna Fail want NAMA to buy the bad debts at a reduced rate and try sell them off. So many problems with this tripe..Who pays for that? Us the taxpayers!

Correct!

the butcher wrote: »

Fine Gael want to set up a new bank. This does not involve burdening taxpayers with the problems of the other banks.

Did you bother to read their proposal? Let me qoute the relevant parts for you:

FG Page wrote:

“Fine Gael favours a different approach. The first step is to establish a National Recovery Bank. This would be a wholesale bank funded by the ECB which would stand ready to provide the necessary liquidity to the covered banks to get credit flowing. It would be willing to buy at a fair market price the small business lending books or the mortgage books of any bank.

So after having declared that valuing stuff is difficult FG wants to buy assets of the banks at "fair market value". Now where did I hear that one before...

FG Page wrote:

The necessary capital would be provided by the State

Intial deposit of 2 Bil EUR and then loan from ECB; except of course this is a state bank so all the money loaned is backed by Ireland except they don't have to take it directly on the books of the budget.

FG Page wrote:

inject new lending into the economy without delay.

FG Page wrote:

It immediately gets credit flowing – a straight fusion into the blood stream of small business;

FG Page wrote:

It helps banks to strengthen their balance sheet by swapping parts of their loan book for cash

So far we've got the same reasons listed as NEMA except what they would buy is different. So why do we go through the banks doing this? Oh here's the answer:

FG Page wrote:

It allows existing relationships between businesses with their banks to continue, but in a new prudent framework dictated by the State bank;

It leaves toxic property-related loans in the hands of the private banks who made them, and who have better skills and incentives than any State agency to recover as much as possible from those loans

Except of course the banks will not loan out stuff if they got the toxic stuff still on their books which is what NEMA was suppose to fix. This leaves this is that either FGs new bank will have to either start to deal directly with companies and private people (state backed bank run by politicans) or it will have to do something about those toxic assets.

So once again I ask, who wants a bank run by politicans?

the butcher wrote: »

Anyone with a brain would set up a new bank clean of the mess of the other banks. Otherwise you have a vested interest in keeping the other zombie banks and want to enslave all of us to a decade+ of debt. No thank you!! I do not want my tax going towards corrupted slime!

Once again, don't disagree but how is making a state bank giving free loans during election year going go fix that?

If you really want to fix it then force all banks to revalue their full book at today's market value. Now this will most likely force a chain reaction of banks going bankrupt; nationalise them, clear them on all bad assets and sell them back to the market. Sweden successfully did this at a profit previous in the 90s and that is the only real way to clear the banks and restore the trust of the banks being clean.

Anything else like TARP, NEMA, FGs bank etc. is only throwing good cash after the bad. Let the damn banks fail and be done with it. Yes, it will be rough when it happens and the state will have to step in but can anyone claim that today's situation of constant free cash injections are some how better?

eamonnm79

There are going to be huge levels of default in loans in the Banks.
Since Sept 29th the Irish tax payer owns the ultimate responsability for these loans. Until then it would have been the institutions that would have had to carry the can.
No matter which way they cut this thing now, the Irish Taxpayer are are going to be the ones holding the can.

The only party to vote against the legistlation was the labour party.
I am not a member of their party by the way.

johnnyskeleton

blindjustice wrote: »

Fine Gael are proposing scrappin NAMA and starting a new bank....

What say you to this idea?

http://www.finegael.org/news/a/351/article/


Personally I dont think we should be shouldering tens of billions of bad developer loans.....a new bank is the only way to go

Hasn't this been suggested on thepropertypin several dozen times over the last year, occasionally, I believe, by yourself?

If the government genuinely wanted to get credit flowing to profitable businesses as they say they do, they could set up another industrial credit corporation, much like they set up the home choice loan scheme to try to pump money into new homes

But in any event, each of these things is just the next stage of the trundeling incompetent government handling of the banking situation. The banks should have been let fail last year. THEN, a new "good" bank would have been able to prevent the ostensible reason that the guarantee was given and later Anglo nationalised i.e. to keep credit flowing. Indeed, the good bank would have been able to make a killing buying up the branch networks etc of the other banks.

At this late stage of the game, I think our future has already been sold, and we can't avoid our fate without going back on all the crap that the government did to the country.

And still, 21% of the country vote for them.

SkepticOne

Nody wrote: »

If you really want to fix it then force all banks to revalue their full book at today's market value. Now this will most likely force a chain reaction of banks going bankrupt; nationalise them, clear them on all bad assets and sell them back to the market. Sweden successfully did this at a profit previous in the 90s and that is the only real way to clear the banks and restore the trust of the banks being clean.

I agree with this. Take the pain now, then move on.

NAMA seems to be about giving developers breathing space so that when things pick up they can go back to paying tax and employing people. This is what they have been lobbying for - look at how they have contributed to the economy and employment, they argue.

Look at BOI and AIB closing in on developers in the courts and the lack of action from the nationalised developers bank, Anglo.

We can't get our heads around the fact that the last stages of the boom were what damaged the country. Even if it were realistic to hope for a repeat, it is not desirable. At this stage exporting goods and services is all we can and should aspire to.

However taking the hit now is utterly what no one wants to do. Kick it into touch and by the time it comes back the politicians will be drawing their pension.

ionix5891

i don't understand as what does setting up new bank have to do with government

if it was profitable to do business in this country other banks would enter the market (provided there are no barriers to entry)

i wouldn't trust a bank run by politicians, we know how well they handle finances