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Lenihan has applied to have bank guarantee extended

Comments

  • #2
    RichardAnd
    Registered Users, Registered Users 2 Posts: 3,934 ✭✭✭RichardAnd


    Just like last week when we conveniently had that story about the HSE giving abortive drugs to the wrong people pop up just when two critical reports on the banks came out.

    As Ned Flanders put it...

    Well don't that just put the wink in co-wink-e-dink!


  • #3
    ei.sdraob
    Closed Accounts Posts: 9,376 ✭✭✭ei.sdraob


    In all honesty now

    the state is insolvent, if there is a run on the banks the guarantee means feck all since theres no money in the kitty (and they cant print either)


  • #4
    Liam Byrne
    Closed Accounts Posts: 18,163 ✭✭✭✭Liam Byrne


    IrishTonyO wrote: »
    Brian Lenihan has applied to have the banking guarantee extended to 31st Dec 2010.
    Timed to be released as the FG heave is on.
    I really think some sort of guarantee is warranted but not the current one.

    http://www.rte.ie/news/2010/0617/banks.html?utm_source=twitterfeed&utm_medium=twitter

    When you're in a (or up your own) hole.......


  • #5
    Banned Account
    Closed Accounts Posts: 1,553 ✭✭✭Banned Account


    As far as I can make out, the guarantee, should it be extended will not be as broad as the current one - it will not cover subordinated debt - which was a big issue with the current one and the aspect that came in from the most criticism from the Honohan report.

    There are rumours abounding that Anglo are going to tell the subordinated debt holders to sling their hooks should the guarantee be changed. I know that there is an element of closing the stable door after the horse has bolted, but at least it's a step in the right direction.


  • #6
    Liam Byrne
    Closed Accounts Posts: 18,163 ✭✭✭✭Liam Byrne


    Fitzcaraldo wrote: »
    There are rumours abounding that Anglo are going to tell the subordinated debt holders to sling their hooks should the guarantee be changed. I know that there is an element of closing the stable door after the horse has bolted, but at least it's a step in the right direction.

    Please tell me that that doesn't mean that now that we own that so-called "bank", that if the subordinated debt holders do a run on it they'll make a bigger loss and we'll just have to put in more cash to prop it up.

    I'm not being sarcastic.....I'm just praying that the above isn't the case. :(

    If someone can confirm the small print that subordinated debt holders can't do a run, then great! But likewise, if they can't, why were they guaranteed in the first place ?


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  • #7
    Banned Account
    Closed Accounts Posts: 1,553 ✭✭✭Banned Account


    Liam Byrne wrote: »
    Please tell me that that doesn't mean that now that we own that so-called "bank", that if the subordinated debt holders do a run on it they'll make a bigger loss and we'll just have to put in more cash to prop it up.

    I'm not being sarcastic.....I'm just praying that the above isn't the case. :(

    If someone can confirm the small print that subordinated debt holders can't do a run, then great! But likewise, if they can't, why were they guaranteed in the first place ?

    It just means that they have to suffer the losses as well and write off their investments - it actually means that someone other than the tax payer carries the can for some of the losses (not a huge amount admittedly, but some nonetheless)


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