A simple question

LoLth

first off, I dont want to start an argument over who did what and who's responsible etc. I'm just asking a question:

Banks received a bailout and an injection of government funds (basically from the irish people). Now , I accept that banks pay taxes as do bank workers and bank managers etc so in a way they are part financing this bailout themselves.. in a way.

so, what happens next? US banks are posting quarterly profits. the turnaround is rumoured to be upon us.

When BoI, AIB etc start making profits, where will the profits go?

Normally profits would be re-invested into the company and a portion set aside to pay dividends on shares but is this actually fair in this case? after all, if the crisis in teh banks was bad enough that they needed bailing out then the only reason the investors still have shares is because of the money given to their investment by the irish tax-payer. Should a portion of the profits be set aside for repaying the government , a percentage before the division between investment and dividend assignment ?

yes, this would reduce profits and would certainly slow share price growth but would this not be a fair way to repay the taxpayers?

I'm not trying to start an "eeeeevil bankers" argument, I just want to know if there are any sort of repayment schemes in the pipeline or has the bailout money just disappeared off the books to be absorbed by the banking institutions and eventually be re-gurgitated as future profits which only benefit a few (the shareholders)?

jhegarty

We got a stake in the banks for the money.

This can be sold on later for the a profit.

Mario007

plus banks are now tied that they cant pay out dividends until they will repay the government guarantee, i think.

in any case the guarantee enforces the banks to pay back interest on the guarantee, so we're getting a lot of money back

ei.sdraob

When BoI, AIB etc start making profits, where will the profits go?

shareholders, the state is a major shareholder now i believe

or

to buildup cash reserves

second option is more likely as they are technically still insolvent

oh and im sure a nice amounts would be paid in bonuses