Deposit protection increase + rumours.

davej

The Irish government is going to increase the deposit protection limit from 20k to 60k.
http://www.finfacts.ie/irishfinancenews/article_1014762.shtml

There are 'rumours' of deposit withdrawls around the country. Is it really that wise make this change right now, could the move backfire ?

Is the chance of a bank run increasing?

davej

leninbenjamin

if there's a bank run in this country it won't be the banks fault. as pointed out by others they are better capitalized and more strictly regulated than many other countries, the U.S. in particular. I'd be very surprised to be honest if there were, but then again given people's highly nervous disposition i couldn't totally rule it out. these days it seems it doesn't take much to create a panic.

nesf

They've increased the limit to 100K: http://www.irishtimes.com/newspaper/breaking/2008/0920/breaking18.htm

Not the worst idea in the world, our banking system is fairly stable and increasing the public's confidence to try and prevent a bank run fuelled only by rumour will only make it more stable. 100K should essentially cover the life savings of the vast majority of people and make it unnecessary for them to maintain multiple deposit accounts in different institutions and running up extra banking charges that way.

Flamed Diving

Good idea, for the meantime. Should be reviewed as a later stage though, as this may lead to moral hazard on the part of depositors.

davej

It seems Joe Duffy and the Late Late have caused a huge stir...

Government complains to RTE over ‘alarmist’ coverage
Sunday, September 21, 2008 By Pat Leahy and Emma Kennedy

The government has complained to RTE about some of its coverage of the global financial crisis.

It warned station bosses that the alarmist tone of some programmes could worsen the situation and lead to deposits being withdrawn from Irish banks.

RTE has confirmed that it received representations from government, but The Sunday Business Post understands that complaints have been made by the Government Information Service (GIS), the Department of Finance, the Central Bank and the Financial Regulator.

Finance minister Brian Lenihan confirmed that he spoke to Cathal Goan, the station’s director-general.

http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=NEWS-qqqs=news-qqqid=36128-qqqx=1.asp

stepbar

davej wrote: »

It seems Joe Duffy and the Late Late have caused a huge stir...



http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=NEWS-qqqs=news-qqqid=36128-qqqx=1.asp

And just like everything that happens in the government / semi state bodies - nobody will take responcibility and no one will get fired. Happy days all round :rolleyes:

nesf

stepbar wrote: »

And just like everything that happens in the government / semi state bodies - nobody will take responcibility and no one will get fired. Happy days all round :rolleyes:

Well they really shouldn't be firing people. It should just be a light tap on the wrist and a request to be more reasonable in their coverage. Joe Duffy and his show about people withdrawing money from banks (for no good reason) being a case and point about irresponsibleness in the media.

stepbar

nesf wrote: »

Well they really shouldn't be firing people. It should just be a light tap on the wrist and a request to be more reasonable in their coverage. Joe Duffy and his show about people withdrawing money from banks (for no good reason) being a case and point about irresponsibleness in the media.

If this was a suitation that happened in the private sector (not sure what the suitation would be - maybe a bank employee publically making a statement), said person(s) would be sacked for reckless behaviour. But it being RTE nobody will be fired and nobody will take responcibility.

nesf

stepbar wrote: »

If this was a suitation that happened in the private sector (not sure what the suitation would be - maybe a bank employee publically making a statement), said person(s) would be sacked for reckless behaviour. But it being RTE nobody will be fired and nobody will take responcibility.

I disagree, if the Government gave out to TV3 say (which would be more accurate an example) I doubt TV3 would fire the presenter or anyone else involved unless it was something illegal that was going on.

stepbar

nesf wrote: »

I disagree, if the Government gave out to TV3 say (which would be more accurate an example) I doubt TV3 would fire the presenter or anyone else involved unless it was something illegal that was going on.

But hold on. Someone approves all that is reported. The presenter only reports the news and probably (maybe they do have some input) doesn't not have any input to how it is put across. What I'm getting at it that an editor / producer in RTE approved what was transmitted during the week. It would have been very easy for said person(s) in RTE to say "No, we are not running with that" and vice versa. Now you might say that they couldn't predict what was going to be said. In that case that person should be held responcible for what was said and dealt with.

nesf

stepbar wrote: »

But hold on. Someone approves all that is reported. The presenter only reports the news and probably (maybe they do have some input) doesn't not have any input to how it is put across. What I'm getting at it that an editor / producer in RTE approved what was transmitted during the week. It would have been very easy for said person(s) in RTE to say "No, we are not running with that" and vice versa. Now you might say that they couldn't predict what was going to be said. In that case that person should be held responcible for what was said and dealt with.

Yeah, but would they be fired? Firing people isn't exactly the first option in the private sector. Holding someone responsible isn't equivalent to firing them for a mistake...

stepbar

nesf wrote: »

Yeah, but would they be fired? Firing people isn't exactly the first option in the private sector. Holding someone responsible isn't equivalent to firing them for a mistake...

Well I would think that's a fairly firable mistake. But that's my opinion.

gogo

It actually been raised to 100k. I think its great that they have raised it,as people are nervous (and entitled to be), it might reasure them that if the guarantee has been raised that the regulator is confident of not having to pay out. While this was not technically the reason for raising it, I think that its the way your ordinary Joe soap will see it. Hopefully it will restore some confidence.

The media/joe Duffy does indeed have a lot to answer for, irish banks are by nature a conserative bunch, most people who have ever applied for a loan will know that. There is no sub prime lending in ireland, not like in America anyway. Boi cutting their dividends in half this year is a prudent thing to do, but it is being portrayed as a sign of there demise. When your having a bad year, you don't go out and buy a new car, you keep some of your money back in case things get harder in the future.You'd swear the media wants to bring down a bank for the entertainment value of it, I believe that they have no idea of the impact a leading bank collasping would have on the economy, and if I have to listen to any more old dears crying about there deposits in work, I'll personally go after Joe Duffy.:cool:
Talk to Joe my ass!

ArmaniJeanss

In two minds about this - I don't think anyone in RTE should be fired for running with a story that is occupying everyones thoughts anyway... its a topic that deserves being talked about, they'd be remiss to ignore it, and they shouldn't be held responsible for where the discussion goes.

On the other hand I have my 78 year old mum wanting to withdraw her €27K life savings from BOI purely because of her total acceptance of the scare-mongering by the callers to the JoeDuffyShow.
As far as she is concerned it was stated as FACT on the radio that every bank is basically within weeks of going bust, and that only fools are leaving their money in there.

stepbar

ArmaniJeanss wrote: »

In two minds about this - I don't think anyone in RTE should be fired for running with a story that is occupying everyones thoughts anyway... its a topic that deserves being talked about, they'd be remiss to ignore it, and they shouldn't be held responsible for where the discussion goes.

On the other hand I have my 78 year old mum wanting to withdraw her €27K life savings from BOI purely because of her total acceptance of the scare-mongering by the callers to the JoeDuffyShow.
As far as she is concerned it was stated as FACT on the radio that every bank is basically within weeks of going bust, and that only fools are leaving their money in there.

I can empatise why your ma would be concerned but that is the very reason why people should be held accountable for making false statements.

BTW if this is any comfort deposits in BOI have increased by 20% in the last year. Not a sign of a bank in trouble TBH.

Time Magazine

The mods have been instructed from the owners of this site to allow discussion about the possibility of a liquidity crisis but not to allow wild speculation that might add to hysteria.

derry wrote: »

Unlike the roman arena where the adience was fixed and the victims and gladiators fought it out in the middle this is more like the some or the whole audience could be dragged in to this perfect economic storm which might see the end of the capitalistic world as we know it

Accordingly the above post has been removed from view

derry

David McWilliams wrote: »

The mods have been instructed from the owners of this site to allow discussion about the possibility of a liquidity crisis but not to allow wild speculation that might add to hysteria.



Accordingly the above post has been removed from view

LOL;)
Yes the risk that some minor bit player in some minor forum in some minor bit player country could trigger a world wide Sunami econimic event is far too great to risk

WHOOP WHOOP
Athung Athung
emergency dive emergency dive
DAS Economic bombs ist comen
All is kaput

Be careful he might huff and puff and blow the house down :eek:

How come it took you so long to see that the written word is so much stronger than the sword

Lucky here in the forums we only are writing on sand


Derry

Time Magazine

derry wrote: »

WHOOP WHOOP
Athung Athung
emergency dive emergency dive
DAS Economic bombs ist comen
All is kaput

Be careful he might huff and puff and blow the house down :eek:

Fascinating. Banned.