what is the impact of nationalising banks for share holders?

jon1981

hi,

just curious, if the banks are nationalised, what does that mean for anyone tht bought shares at say their peak price or recently at their low.

cheers

Mark200

As far as I know they get nothing.

The reason for this is because nationalising only comes around because it's either that or let the bank collapse and go bankrupt, which means the shareholders would get nothing anyway.

jon1981

Mark200 wrote: »

As far as I know they get nothing.

The reason for this is because nationalising only comes around because it's either that or let the bank collapse and go bankrupt, which means the shareholders would get nothing anyway.

so that piece of news about the ICTU calling for the nationalising is bound to have a negative affect on the share price? does that mean the bank then becomes a state body aka civil servant territory?

eden_my_ass

Irish banks are all up strongly today...go figure....also the ICTU can call for whatever they want, doesn't mean anyone will listen to them

Clearly noone is bothered by them!

seamus

Nationalising a bank essentially means that the country becomes the majority shareholder by buying up sufficient shares.

Usually this involves taking 100% of the shares, but generally for nothing because the bank has gone bankrupt and is therefore worthless.

If the country was to nationalise a bank just for ****s and giggles, they would need to purchase everyone's shares from them. On the other hand if the state just wants control, they only need to buy 51% of the shares.

kmick

They can also be given preference shares which means they get paid first in the event of a hiccup.