Government To Take Share in Irish Banks

Pssst! Wanna buy a bank?

The  new Governor of the Central Bank, Professor Patrick Honohan, thinks it’s quite possible that the State might end up owning a half share in each of the two biggest Irish banks.  That’s what he told a Dáil committee yesterday.

You see?

After NAMA buys their bad assets for a criminally-inflated price, the banks will still have to raise more capital and it doesn’t look as if they’ll be able to find the money on the open market.

So guess who gets to stump up the cash?

Yup.  It’s you!  After you generously put €7 billion into BoI and AIB, and after you kindly nationalised Anglo instead of letting it collapse like the pile of wobbly shit it is, and after you obligingly agreed to  pay at least €20 billion more for the banks’ distressed assets than they’re worth, and after you bent over and took the last two budgets without lubrication, and after you quite possibly accepted a cut in your wages,  you’re now about to pay who knows what –  €5 billion?  €10 billion? €20 billion, for a half share in these two incompetent, grasping, criminal institutions that, along with the non-banks, brought the country to bankruptcy.

Isn’t that generous of you?

Here’s a radical idea.  Supposing the salaries of senior executives was inversely linked to State aid?  Suppose the more money we had to put in, the less they were paid?

Do you think they’d somehow manage to find the money on the open market then?

Isn’t it nice to know you’ll be a part owner of the bank that tells you to fuck off next time you go looking for a small loan?

4 thoughts on “Government To Take Share in Irish Banks

  1. Bock, the banks are bankrupt and have being held together by the Guarantee of last year. Nama, rather its understudy is about to absorb from one asset class that the banks have dealings. Now forget for a moment the developers and focus on the property within the cities and towns. The single shop or few shops bought in the last 15 years by John the Toyshop owner. Now John mortgaged the earnings of his shop at say 2006 levels, but now he is at 1998.
    This situation is exactly the same for almost all business people in this State, and while they may get a downward rent review and even a review on the Rate, and for the sake of it each and every tax, PRSI, all charges that go to government. It will not make one bit of difference. It would not cover the shortfall and cover his paper.
    You see the banks have nothing to loose anymore, they may as well put Call on and recover something. That Central Banker is only fooling himself yet again, for underpinning his premiss is that these are Irish banks with an semi-patriotic notions to protect the State.
    Anyone that misses any payment will be recalled. Further, all these moratoria to hold off on defaulters, once the Protections are removed at the end of next Summer there will be a blizzard of Writs.

    p.s. you e-mail thingy on followup comments is not working for some reason. They are not hitting my spam-filter, I’ve checked. Thanks Vincent.

  2. It seems that there is a conservative Government estimate of a requirement of €10 billion for 2010 for the Banks. Given past experience with Government estimates we can put in a multiplier of six to ten. I wonder where we are going to get enough sackcloth to cover the nether regions of the populace? Perhaps we should not bother it makes access easier for buggery. It seems the majority are happy to accept.

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