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

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245

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    #32
    daltonm
    Closed Accounts Posts: 158 ✭✭daltonm


    Thank you


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    #33
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    OldRope wrote: »
    My understand of what caused the credit crunch is that banks purchased lots of mortgages bundles without knowing what was in the bundle that they purchased

    Banks had give lots of mortgages give out to people mainly in US and UK and I am sure BoI must have done the same in Ireland. No checks were done to see if the mortgagees were able to pay back their loan. The mantra for the last 10 years was that property would never fall.

    Banks do not trust each other now and will not lead money to each other as well as the public that is what is causing the present crunch.

    Regarding going back to check your earlier posting, to quote what you said earlier, 'I couldn't be arsed' as I have no inclination to see what you as a banker has posted. :p

    Really does not help your argument at all :rolleyes:

    "No checks were done to see if the mortgagees were able to pay back their loan"

    Wow. Certainly not from an Irish perspective. Do you know that when someone gets a mortgage that there's a procedure in place called "stress testing" which ensures that someone can afford a mortgage in the years after same has been approved. Check it out before making any further rediculus comments.

    And and.... that's not all. Actually I won't bore you with the detail but go into your bank, ask them for a mortgage and you will soon find out.


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    #34
    OldRope
    Closed Accounts Posts: 12 ✭OldRope


    stepbar wrote: »
    Really does not help your argument at all :rolleyes:

    "No checks were done to see if the mortgagees were able to pay back their loan"

    Wow. Certainly not from an Irish perspective. Do you know that when someone gets a mortgage that there's a procedure in place called "stress testing" which ensures that someone can afford a mortgage in the years after same has been approved. Check it out before making any further rediculus comments.

    And and.... that's not all. Actually I won't bore you with the detail but go into your bank, ask them for a mortgage and you will soon find out.

    I should have said 'no check before the credit crunch' and of course you will not get a mortgage now as banks are not even lending to each other.

    Also prior the credit crunch the "housing wealth engine" referred to the idea that as housing prices went up, people used homes like ATM's, borrowing against equity to use for consumer spending. When housing prices stopped appreciating and liquidity dried up, this engine slowed considerably, reducing consumer spending and applying downward pressure to GDP. This is the "real" or "main street" economy.

    Also please look at the links below:

    http://www.independent.ie/business/personal-finance/where-youd-stand-if-your-bank-or-insurer-collapsed-1479419.html

    http://en.wikipedia.org/wiki/Irish_property_bubble#Crash_predictions

    http://www.finfacts.ie/irishfinancenews/Irish_2/index.shtml

    You are probably concerned about large bonus for next year.. will it be considerably less than last year.


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    #35
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    OldRope wrote: »
    I should have said 'no check before the credit crunch' and of course you will not get a mortgage now as banks are not even lending to each other.

    LOL :D Please. This is Ireland not the US. Irish lenders don't give mortgages to those who have no income. Now, please tell me what specific knowledge have you about how a mortgage is approved? Otherwise, please refrain about commenting about things you have no clue about.

    OldRope wrote: »
    Also prior the credit crunch the "housing wealth engine" referred to the idea that as housing prices went up, people used homes like ATM's, borrowing against equity to use for consumer spending. When housing prices stopped appreciating and liquidity dried up, this engine slowed considerably, reducing consumer spending and applying downward pressure to GDP. This is the "real" or "main street" economy.

    Also please look at the links below:

    http://www.independent.ie/business/personal-finance/where-youd-stand-if-your-bank-or-insurer-collapsed-1479419.html

    http://en.wikipedia.org/wiki/Irish_property_bubble#Crash_predictions

    http://www.finfacts.ie/irishfinancenews/Irish_2/index.shtml

    You are probably concerned about large bonus for next year.. will it be considerably less than last year.


    The comment above means SFA to me as it looks fairly random to me.

    BTW, I don't get a bonus.


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    #36
    OldRope
    Closed Accounts Posts: 12 ✭OldRope


    Bankers Jargon


    http://www.youtube.com/watch?v=mzJmTCYmo9g


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    #37
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    OldRope wrote: »
    Bankers Jargon


    http://www.youtube.com/watch?v=mzJmTCYmo9g

    Did you mean to post this on the humour forum?


    Buffybot, please do something about this joker.


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    #38
    BendiBus
    Closed Accounts Posts: 2,075 ✭✭✭BendiBus


    stepbar wrote: »
    People have nothing to fear.

    ...but fear itself.

    And it's this fear that can cause a run on a bank.

    If you understand banking as much as you profess then you'll understand how much banking survives on the trust of investors & savers.

    Increasing the deposit guarantee will hopefully do much to allay public fear. This is why it was necessary.

    The amended Deposit Protection Scheme is working to protect the banks rather than the depositors!


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    #39
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    BendiBus wrote: »
    ...but fear itself.

    And it's this fear that can cause a run on a bank.

    If you understand banking as much as you profess then you'll understand how much banking survives on the trust of investors & savers.

    Increasing the deposit guarantee will hopefully do much to allay public fear. This is why it was necessary.

    The amended Deposit Protection Scheme is working to protect the banks rather than the depositors!

    Well that's where our opinions on risk part. If our banks were in worse shape (in terms of Tier 1 Capital and overall liquity etc) and we hadn't the amount of regulation we have at present then I would have concerns.

    And BTW the same can be said of any business not just a bank. If people bothered to investigate the facts and stop basing their opinions on what the media has to say we might have more informed opinions.


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    #40
    dotsman
    Registered Users Posts: 3,635 ✭✭✭dotsman


    OldRope wrote: »
    I should have said 'no check before the credit crunch' and of course you will not get a mortgage now as banks are not even lending to each other.

    Also prior the credit crunch the "housing wealth engine" referred to the idea that as housing prices went up, people used homes like ATM's, borrowing against equity to use for consumer spending. When housing prices stopped appreciating and liquidity dried up, this engine slowed considerably, reducing consumer spending and applying downward pressure to GDP. This is the "real" or "main street" economy.

    Also please look at the links below:

    http://www.independent.ie/business/personal-finance/where-youd-stand-if-your-bank-or-insurer-collapsed-1479419.html

    http://en.wikipedia.org/wiki/Irish_property_bubble#Crash_predictions

    http://www.finfacts.ie/irishfinancenews/Irish_2/index.shtml

    You are probably concerned about large bonus for next year.. will it be considerably less than last year.

    I honestly think that you have no other understanding of what has happened and is happening. It seems you have read a few things you didn't really understand, put them together, mixed them up and now have a very distorted view of what's going on.

    With regards the "no checks" thing, can you please show me just one example of this every happening in Ireland? That was an American phenomenon, not an Irish one. Irish lenders were very strict in their application/customer scoring in comparison.

    Irish banks were not involved in sub prime lending. Fortunately, these type of loans had only just started in Ireland (Start, GE etc), all of which were foreign banks who saw the Irish market as very lucrative given the conservative lending of the main Irish banks (especially AIB, followed by BOI).

    In very layman terms - In the US (not here) the subprime (high risk) lenders were mixing their debts with prime (safe) loans and selling them on to investment banks (who did not appreciate how risky these bonds actually were). It is these loans that were/are toxic, as with the housing crash in the states (much worse than here), these bonds are worth considerably less than what the investment banks originally thought. Thus there is zero confidence in any of the US banks, because noone actually knows who's holding all these toxic loans (as they were constantly repackaged, sold on and otherwise disguised).

    Irish banks had very little dealing with these toxic funds (were talking only millions of euro, not billions).

    With regards to your links, Louise McBride doens't have a clue what she is talking about. In her article (published today) she's talking about only 20K being covered, whereas everybody and their dog knows that, since yesterday, it is now 100K (and is the topic of this thread!). If she's so unaware of this news, how can you trust anything else she says!
    Wikipedia is not exactly known for it's athenticity! That piece could have been written by a 14-year old!
    I'm not sure what you wanted us to read on fin facts.

    By the way, I'm not disagreeing with the above links, just pointing out why I wouldn't even bother reading them and find that it's best to just stick to the facts and trusted sources when it comes to this kind of thing and not base my opinions on panic mongerors etc.


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    #41
    BendiBus
    Closed Accounts Posts: 2,075 ✭✭✭BendiBus


    stepbar wrote: »
    If people bothered to investigate the facts and stop basing their opinions on what the media has to say we might have more informed opinions.

    But that's the problem. They don't. They never have and they never will. And this has to be taken into account.


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    #42
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    BendiBus wrote: »
    But that's the problem. They don't. They never have and they never will. And this has to be taken into account.

    Well there goes the argument. Most people are stupid. End of.


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    #43
    LightningBolt
    Registered Users Posts: 1,639 ✭✭✭LightningBolt


    OldRope wrote: »
    I should have said 'no check before the credit crunch' and of course you will not get a mortgage now as banks are not even lending to each other.

    Just give up


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    #44
    Cantab.
    Closed Accounts Posts: 1,444 ✭✭✭Cantab.


    I still don't see how I'm protected when there's not enough money to insure the depositors of even a small Irish bank.


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    #45
    daveirl
    Closed Accounts Posts: 14,483 ✭✭✭✭daveirl


    This post has been deleted.


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    #46
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    daveirl wrote: »
    This post has been deleted.

    Dave, there's a big difference between giving someone a mortgage when they have no income and are effectively unemployed.


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    #47
    daveirl
    Closed Accounts Posts: 14,483 ✭✭✭✭daveirl


    This post has been deleted.


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    #48
    BuffyBot
    Moderators, Motoring & Transport Moderators Posts: 24,924 Mod ✭✭✭✭BuffyBot


    This is veering towards an Economics thread - so can we bring this thread on topic, and maybe spin off the other conversation to the appropriate forum?

    Thanks :)


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    #49
    BuffyBot
    Moderators, Motoring & Transport Moderators Posts: 24,924 Mod ✭✭✭✭BuffyBot


    Posts split off to http://www.boards.ie/vbulletin/showthread.php?t=2055385222

    Thanks :)


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    #50
    derry
    Banned (with Prison Access) Posts: 1,380 ✭✭✭derry


    ixoy wrote: »
    Just saw this on RTE:


    Good news and it will allay some fears for those with larger deposits in one bank. Gives me a little comfort as I had too much shoved in with BoI.

    Anyfinwer details how solid is the bank garentee for the 100K
    I saw last week saterday the regime decide to announce that they would garentee the deposits in banks up from 20K to 100K


    I waited and watched for confirming info how this slight of hand can be done

    Like apart from its some politcal promise what is the reserves and conditions to back it up

    Like if the bank goes wollop do we have to wait 6 months or ten years to get our money back

    Apart from the government who else would contribute to the funds to this solution

    It just seems to be from what i can see the nanny state has yet again pulled off the magic trick POOF 100k garanteed with hot air and Hush little baby you can go back to sleep

    Only got some indictors that all is not so good from this thread

    http://www.boards.ie/vbulletin/showt...5385222&page=2


    Appears there is no reserve in the banking system to garentee this funds

    So it seems now it is a political promise until the law is changed to increase the reserves

    So anybody know if the bank went kapow how long it would take to get the 90K if your 100,000K is in the bank at the time


    If for example it took 10 years to get refunded and inflation was 5% over that time the 100,000 K which would be 90K which would after 10 years then only be worth 45,000 K or something like half the value in ten years with a modest inflation rate makes this a dodgy burger investment to me if that was the case

    As a investment the the whole idea of the fractional banking system is strictly a good system to fool the population and rip their faces

    So long as the investing of money return are less than the inflation rate theat the bank and the banking investment system chose to create then anybody who keeps funds in banks is set to lose the most money for a samll return of a few % on the capital

    Any big bank short on funds in this open banking world can buy out a Irish bank and then strip it of all its funds if they so wish

    The best way to rob a Bank is to buy it

    The last person i would believe that a bank is secure is a bank employee of any sort especialy the underling who count the mioney they know nothing for the stuff upstairs

    Thats like listining to the camp comandant in Auswhich "Arbiet maken Frie "the showers and delousing are this way and then they give it to in the neck with gas fumes from the shower unit

    Derry


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    #51
    Jimbo
    Closed Accounts Posts: 2,379 ✭✭✭Jimbo


    Can anyone tell me does the €100,000 government guarantee on personal deposits cover Rabodirect accounts?


    I'm just worried as they don't appear to have a base in Ireland


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    #52
    Keith186
    Registered Users Posts: 3,196 ✭✭✭Keith186


    No don't think so. It's protected by Dutch gov. I think I heard on Matt Cooper and it was about €50k. Should be fine anyway wouldn't worry about it.


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    #53
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    jimbo78 wrote: »
    Can anyone tell me does the €100,000 government guarantee on personal deposits cover Rabodirect accounts?


    I'm just worried as they don't appear to have a base in Ireland

    Nope, they are regulated by the Dutch Central bank.


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    #54
    Mr Ed
    Registered Users Posts: 128 ✭✭Mr Ed


    They're regulated by the Dutch government up to €40k


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    #55
    redroar1942
    Closed Accounts Posts: 388 ✭✭redroar1942


    I would'nt be worried about Rabo, I was heartened by how quickly the Dutch & Co stepped in to prop up Fortis.


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    #56
    Do-more
    Registered Users Posts: 4,748 ✭✭✭Do-more


    Irish bank deposits guaranteed by Govt.
    The Government has decided to guarantee all deposits in Irish banks.

    The banks that are covered are: Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society and specific subsidiaries that may be approved by Government following consultation with the Central Bank and the Financial Regulator.

    Recently the Government guaranteed deposits of up to €100,000. now it has gone further to cover all major deposits by financial institutions with Irish banks.

    ts guarantee also covers all money borrowed by Irish banks from other financial institutions.

    The statement from the Department of Finance says all deposits, bonds and debt will be covered by the State.

    Essentially this is a guarantee that if any Irish bank faces serious problems the Government will step in.

    The two-year guarantee is being provided on commercial terms to the institutions.

    The backing would be subject to conditions that would protect taxpayers' interests.

    The Department says the step is being taken to remove any uncertainty surrounding banks.

    It adds it is a very important initiative by the Government designed to safeguard the Irish financial system.

    In the coming hours it will be clear if the move is enough to stop the enormous slide in Irish bank shares.

    invest4deepvalue.com



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    #57
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    There might be a few people moving money out of Halifax, Ulster, First Active NIB , Rabobank and Credit Unions in the next few days.


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    #58
    BuffyBot
    Moderators, Motoring & Transport Moderators Posts: 24,924 Mod ✭✭✭✭BuffyBot


    Folks - as per the charter, this forum is about financial products/services etc.

    I've merged a thread into this existing one, and deleted posts.

    If you want to discuss the greater financial crisis then Economics or Investments & Markets would be more appropriate.

    Let's keep to this forums reason for being, and move the more advanced discussions about free markets and global economics to the more relevant forums.


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    #59
    zod
    Closed Accounts Posts: 2,025 ✭✭✭zod


    Is ulster bank covered by the 100k ( or unlimited ) protection by the Irish Government ?


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    #60
    Ogham
    Registered Users Posts: 1,844 ✭✭✭Ogham


    Just the 100k

    See full list of Guarantees here


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    #61
    tHE vAGGABOND
    Registered Users Posts: 6,686 ✭✭✭tHE vAGGABOND


    Congrats to everyone who has more than 100k in their deposit account :)


This discussion has been closed.
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