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Lenihan won't force banks to pass on cut

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  • 09-10-2008 10:54am
    #1
    delop
    Registered Users Posts: 490 ✭✭


    This really upset me this morning....

    Im probably not understanding it correctly so, I would be greatful if some of the economics boffins can explain to me how this is Ok

    My first thoughts were:
    1) Ulster bank and the ones who wont pass it on are just sayign F you to their Variable Mortgage holders, profitering....
    2) Banks who will accept the guarantee scheme, dont give a Fup about the tax payer, and will be back to their old trick again...
    3) The Gov have no backbone, and will not implement any reasonable conditions with the Guarantee, and just another cas of FF looking after their buddies

    But as I said, Im probably not understanding all the in's and out's


Comments

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    #2
    ninty9er
    Registered Users Posts: 9,366 ✭✭✭ninty9er


    More likely the case that rates were cut to allow banks to gain a bigger margin between wholesale and retail margin so that they can afford to pay their bills again.


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    #3
    Économiste Monétaire
    Closed Accounts Posts: 2,208 ✭✭✭Économiste Monétaire


    Interbank money markets are the problem. If banks have to pay a hefty premium to access this market then you can't expect them to lower their interest rates on mortgages. There isn't a perfect correlation between ECB/BoE minimum bid rates and mortgage rates (unless you're on a tracker mortgage, as that's a stipulation).


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    #4
    delop
    Registered Users Posts: 490 ✭✭delop


    fair enough, but why are some banks passing it on any others not?


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    #5
    eamonnm79
    Closed Accounts Posts: 459 ✭✭eamonnm79


    This is an example of some small print that should have been included in the 400 billion + bank insurance scheme.

    It also advocates labours refusal to vote for the scheme until they knew the small print.

    I think that the government will put pressure on the banks behind the scenes.


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    #6
    TheBazman
    Registered Users Posts: 6,462 ✭✭✭TheBazman


    AIB and BOI are both passing it on in full


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    #7
    Gandalf23
    Closed Accounts Posts: 1,643 ✭✭✭Gandalf23


    TheBazman wrote: »
    AIB and BOI are both passing it on in full

    Proof or a link please?


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    #8
    TheBazman
    Registered Users Posts: 6,462 ✭✭✭TheBazman


    Gandalf23 wrote: »
    Proof or a link please?

    Sceptical or what!
    http://breaking.tcm.ie/ireland/mhidkfauqlsn/


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    #9
    themadchef
    Closed Accounts Posts: 5,813 ✭✭✭themadchef


    Anyone know if EBS are passing it on?


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    #10
    delop
    Registered Users Posts: 490 ✭✭delop


    they sure are....

    I regret starting the post and getting annoyed, I forgot it was a game...
    UB an co siad no to the rate reduction pass on
    Gov includes them in the bailout
    UB and Co agree to pass on the rate reduction


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