EU not happy with Anglo, might weant it shut down

IrishTonyO

Matt Cooper in his blog and twitter and on the radio has said he has heard from sources that the EU is not happy with the bail out for Anglo Irish Bank and that they would prefer it was wound down.
And Brian Lenihan for the first time today has said a long term wind down will be looked at

http://twitter.com/cooper_m

http://www.rte.ie/business/2010/0428/anglo.html

goat2

it is shameful if our own heads could not see that shutting anglo was the proper thing to do
now europe tells them and they are about to make a u turn
what a bunch of asses

Pete M.

The EU aren't the only ones :mad:

And it would be a bit much to expect our 'heads' as you put it, to see anything that is going to happen more than 2 seconds in the future.

This is what should have happened months, nay, years ago.
We don't need the EU to tell us this FFS

lionela

Regarding any closure of any financial house...think of the result for depositors in those institutions.

If the governments current guarantees are not extended in September...then we will see a mass withdrawing of depositors cash from said financial houses and more than likely transfered into an Post. That will leave no money for loans for house purchase for anyone ..and further damage the buildindg trade and all associated businesses.

We are all treading on eggshells at the present time Re. finance.

Let's get a grip for goodness sake.

K-9

lionela wrote: »

Regarding any closure of any financial house...think of the result for depositors in those institutions.

If the governments current guarantees are not extended in September...then we will see a mass withdrawing of depositors cash from said financial houses and more than likely transfered into an Post. That will leave no money for loans for house purchase for anyone ..and further damage the buildindg trade and all associated businesses.

We are all treading on eggshells at the present time Re. finance.

Let's get a grip for goodness sake.

This gives you an idea of what it will cost to close it now:

The Irish Economy » Blog Archive » Anglo: What Are The Options?

Be careful of what you wish for!

Marshy

Just heard about this on Vincent Browne. Constantin Gurdgiev from TCD was on discussing it after Lenihan apparently said earlier he was open to debate on how to deal with Anglo.

Gurdgiev claimed experts are saying 27 billion will be the cost of winding it down. That will cover all its depositors. Bondholders won't get anything.

Either way its crucial we deal with Anglo in the cheapest/most efficient way. Things are getting nasty with Greece and soon we could be in similar problems with our debt.

kravmaga

Sure the banks are not lending any money as it is.

I know business people who cannot even get over draft extensions and they are long term customers of the major banks in this country.

Anglo Irish Bank should have been let go to the wall in the first instance.

It should have never been bailed out by the tax payer, big mistake by Lenihan and the government.

Unsure how it would work out if it were to be wound down now.

Why are the EU sticking their oar in now when the horse has bolted

Marshy

blueeyedboy wrote: »

Why are the EU sticking their oar in now when the horse has bolted

Well the Greece situation is threatning instability in the Eurozone and Ireland is one of the other highly indebted countries along with Spain and Portugal. Anglo is a large part of our problem and we have to be seen to be dealing with it properly. It's in everyone's interest (across Europe) that the euro stays strong.

IrishTonyO

There is even talk of Greece 'temporarily' leaving the Euro to solve the problem, and they are also considering devaluing the Euro.

nachoman

IrishTonyO wrote: »

Matt Cooper in his blog and twitter and on the radio has said he has heard from sources that the EU is not happy with the bail out for Anglo Irish Bank and that they would prefer it was wound down.
And Brian Lenihan for the first time today has said a long term wind down will be looked at

http://twitter.com/cooper_m

http://www.rte.ie/business/2010/0428/anglo.html

Hold on a sec! Were'nt we warned that if we didn't bail out Anglo we would be buried under an even larger pile of debt and an even slower economic recovery?:mad:

Marshy

IrishTonyO wrote: »

There is even talk of Greece 'temporarily' leaving the Euro to solve the problem, and they are also considering devaluing the Euro.

Yeah, Greece leaving monetary union would be a possibility (other countries as well I guess) but thats still unlikely I'd say. I don't think there's a way they could be kicked out, it would have to be up to them.

The way its going the euro is going to be seriously devalued alright.

IrishTonyO

Just find it strange that these rumours start and then Brian Lenihan for the first time ever says he is open to a gradual wind down of Anglo!! Seems a bit much of a coincidence.

aidan24326

lionela wrote: »

If the governments current guarantees are not extended in September...then we will see a mass withdrawing of depositors cash from said financial houses and more than likely transfered into an Post. That will leave no money for loans for house purchase for anyone ..and further damage the buildindg trade and all associated businesses.

They're not lending money to anyone anyway! And the building trade here is gazumped for the foreseeable future with or without Anglo. Anglo should have been let go under, it's mind-boggling that the government would choose to pump billions of public, taxpayer's money into a red-rotten bank that we don't even need. And even more mind-boggling that the likes of Sean Fitzpatrick and Michael Fingleton have not been called to task after basically riding a horse and carriage through the banking system.

K-9

Marshy wrote: »

The way its going the euro is going to be seriously devalued alright.

The funny thing is, if we can survive, this is what people who want us to leave the Euro want, a devaluation. If only we could survive it!

danman

blueeyedboy wrote: »

Sure the banks are not lending any money as it is.

There are a number of projects being funded by Anglo at present.
I can't speak for many of them, but one of the projects I'm working on at present is funded by Anglo.

It is a viable project with 2 large tennents in place.

If Anglo goes, it will bring down a number of businesses connected with this project. With a lot of jobs on the line. That's the only one I can speak of, but I'm sure it's not the only one.

There is always a bigger picture, and there's also the man on the ground. Anglo equated to 20% of Irish banking (I think). There are still an awful lot of businesses connected to their survival at present.

Raiser

Oh?

- The EU too?

Fine that's almost everyone.....

dan_d

Bit feckin late isn't it??We've already given them the bloody money.

Raiser

dan_d wrote: »

Bit feckin late isn't it??We've already given them the bloody money.

Do you really expect this one to come in on budget and on time - Its early days methinks

Liam Byrne

danman wrote: »

I can't speak for many of them, but one of the projects I'm working on at present is funded by Anglo.

So you're happy that everyone in the country subsidises those jobs to the tune of €18,000 each ?

I could hire an additional person at that rate, and it would be fairer.

danman wrote: »

It is a viable project with 2 large tennents in place.

http://newsimg.bbc.co.uk/media/images/44672000/jpg/_44672545_tennents-lovely466.jpg

danman wrote: »

If Anglo goes, it will bring down a number of businesses connected with this project. With a lot of jobs on the line. That's the only one I can speak of, but I'm sure it's not the only one.

If Anglo DOESN'T go, it will bring down a lot more than "a number of businesses" by wrecking the entire economy (although I can't help thinking it has already done that).