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BOI CEO is right not revealing write off details.

  • 02-11-2012 9:48am
    #1
    Scanlas The 2nd
    Banned (with Prison Access) Posts: 3,144 ✭✭✭


    The government are fukcing thick. They actually tried to get te CEO to reveal how much debt they are writing off. The bank could possibly collapse if he reveals those figures and the tax payer would have to pick up the pieces.

    Game theory should really be taught in school.


Comments

  • #2
    SEPT 23 1989
    Registered Users Posts: 43,024 ✭✭✭✭SEPT 23 1989


    The tax payer gave AIB 3 billion to assist with "write offs"

    and they wrote off 600,000


  • #3
    R0ot
    Registered Users Posts: 4,473 ✭✭✭R0ot


    In case anyone is wondering what he's talking about.

    http://www.youtube.com/watch?v=k3YkCWJIMXE


  • #4
    blackwhite
    Registered Users Posts: 8,445 ✭✭✭blackwhite


    SEPT 23 1989 wrote: »
    The tax payer gave AIB 3 billion to assist with "write offs"

    and they wrote off 600,000

    Which has what exactly to do with Bank of Ireland???


  • #5
    mayotom
    Registered Users Posts: 742 ✭✭✭mayotom


    What sort of banking CEO doesn't understand/refuses to understand what negative equity is ?

    he should be fired


  • #6
    PC CDROM
    Closed Accounts Posts: 408 ✭✭PC CDROM


    mayotom wrote: »
    What sort of banking CEO doesn't understand/refuses to understand what negative equity is ?

    he should be fired

    Its a figure pulled from peoples asses based on markets and values until an actual transaction has been completed.


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  • #7
    juan.kerr
    Closed Accounts Posts: 2,766 ✭✭✭juan.kerr


    SEPT 23 1989 wrote: »
    The tax payer gave AIB 3 billion to assist with "write offs"

    and they wrote off 600,000

    Sure, but they put the remainder to good use. How else would Sheedy get his 500k per annum pension?


  • #8
    juan.kerr
    Closed Accounts Posts: 2,766 ✭✭✭juan.kerr


    Scanlas The 2nd wrote: »
    The government are fukcing thick. They actually tried to get te CEO to reveal how much debt they are writing off. The bank could possibly collapse if he reveals those figures and the tax payer would have to pick up the pieces.

    So investors and shareholders don't have a right to know what they are writing off? :rolleyes:

    If it's as bad as you seem to think then maybe the bank should be allowed to collapse.

    There is no banking 'competition'.


  • #9
    Scanlas The 2nd
    Banned (with Prison Access) Posts: 3,144 ✭✭✭Scanlas The 2nd


    juan.kerr wrote: »

    So investors and shareholders don't have a right to know what they are writing off? :rolleyes:

    If it's as bad as you seem to think then maybe the bank should be allowed to collapse.

    There is no banking 'competition'.

    If the public becomes aware of exactly how much is being written off that could lead to more people defaulting on their mortgage. Why pay your mortgage if you know your neighbour's debt was forgiven?

    It is in the public's interest not to know the figures.

    BOI collapsing would cause even more economic problems.


  • #10
    juan.kerr
    Closed Accounts Posts: 2,766 ✭✭✭juan.kerr


    Scanlas The 2nd wrote: »
    If the public becomes aware of exactly how much is being written off that could lead to more people defaulting on their mortgage. Why pay your mortgage if you know your neighbour's debt was forgiven?

    It is in the public's interest not to know the figures.

    BOI collapsing would cause even more economic problems.

    I think this is a bit of a myth, I'm not convinced it would encourage 'strategic defaults'.


  • #11
    K-9
    Registered Users Posts: 43,311 ✭✭✭✭K-9


    Scanlas The 2nd wrote: »
    If the public becomes aware of exactly how much is being written off that could lead to more people defaulting on their mortgage. Why pay your mortgage if you know your neighbour's debt was forgiven?

    It is in the public's interest not to know the figures.

    BOI collapsing would cause even more economic problems.

    It's hardly a well kept secret that more write offs are coming, markets aren't that dumb.

    Mad Men's Don Draper : What you call love was invented by guys like me, to sell nylons.



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  • #12
    Nevermind_
    Closed Accounts Posts: 328 ✭✭Nevermind_


    Its not a myth it is very much already happening, and it is common sense if people think they will have a chance of getting a deal on their debt it is better to look weak than strong and appear to be unable to pay it fully.
    Otherwise there is zero incentive for the bank to do a deal/writedown


  • #13
    Capt'n Midnight
    Moderators, Recreation & Hobbies Moderators, Science, Health & Environment Moderators, Technology & Internet Moderators Posts: 90,656 Mod ✭✭✭✭Capt'n Midnight


    most of the economic problems were caused by hidden information

    recovery was delayed for years because people were holding off because of the constant drip drip feed of bad news

    if all the bad news had been revealed fairly quickly then everyone could agree that we'd hit the bottom and the only way was up




    instead it's still drip drip and still not sure there isn't a nasty surprise waiting to see the light of day


  • #14
    Victor
    Registered Users Posts: 78,234 ✭✭✭✭Victor


    Scanlas The 2nd wrote: »
    The government are fukcing thick.
    Correction, Stephen Donnelly, independent TD is thick.

    The problem with the sequence in the video (aide from iffy editing and audio) is that Donnelly doesn't understand his own question.

    Take some examples:

    1. Property bought for €100,000, value €300,000, being repaid in full, no impairment.

    2. Property bought for €200,000, value €300,000, being repaid in full, no impairment.

    3. Property bought for €300,000, value €300,000, being repaid in full, no impairment.

    4. Property bought for €500,000, value €300,000, being repaid in full, no impairment.

    5. Property bought for €500,000, value €300,000, householder struggling, no impairment.

    6. Property bought for €500,000, value €300,000, behind in payments, but some payment is still being made.

    7. Property bought for €500,000, value €300,000, householder unable to make payments for extended period and bank has repossessed it. It is being sold today and expected to make the €300,000.

    8. All the other tends of thousands of houses, worth €300,000 and the bank is only owed tens of thousands, being repaid in full, no impairment.

    While there is negative equity of €800,000, the bank currently is taking a hit for €200,000 and will expect to take another slight hit.


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