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AIB Nationalisation: Competitive Advantage or Disadvantage?

  • 15-10-2010 4:02pm
    #1
    imme
    Registered Users, Registered Users 2 Posts: 3,200 ✭✭✭


    AIB has effectively been nationalised. Will this give the bank a competetive advantage or disadvantage over their competitors?

    In the short term it could restrict their ability to raise funding. In the long term the government doesn't want to be running a bank.

    How long will it remain nationalised?

    Would a government (any government) sell it to a big European Bank, Barclays or Santander or another foreign bank.


Comments

  • #2
    GSF
    Registered Users, Registered Users 2 Posts: 1,831 ✭✭✭GSF


    Since most of the banks are zombies anyway at the moment (not lending) its a bit of a mute point. Competitive advantage only matters if they are competing for business.


  • #3
    Dob74
    Registered Users, Registered Users 2 Posts: 1,049 ✭✭✭Dob74


    Would love to see the bank broken up into 3 or 4 smaller banks and let them compete against each other. AIB failed in 1985 only to be bailed out by us suckers and only 25 years later is being bailed out again. If it where smaller you could leave it go bankrupt without destorying the economy. The smaller they make it the better.


  • #4
    Dannyboy83
    Registered Users, Registered Users 2 Posts: 4,236 ✭✭✭Dannyboy83


    We were refused a mortgage by AIB 3 weeks ago.

    In 2008, they approved a mortgage twice what I requested 3 weeks ago, on a similar salary less levies etc. (which I didn't take, thank fook)

    AIB are supposed to be doing less new mortgage lending than any other banks. Looking at the property market and what is in store, it's not terribly hard to see why!


    Just got this ad in my email this morning:
    http://www.daft.ie/searchsale.daft?id=561852&search=1

    That house is 155k now. Was about twice that 3 years ago.
    We are on the cusp of the two most destructive budgets in Irish history, ever political party admits that - even the one in power.

    For mortgages taken out after 31 December 2012, no mortgage interest relief will be allowed, and I'm guessing your average PAYE worker is going to be hit by 2% in this budget and the next, along with credit reductions, so we'll say a 5% reduction in net income (through levies) over the next 2 years isn't unrealistic.

    I reckon in 2 years, that house in the link I've provided will be sitting around 100 to 115k. I just hope I'll still have a job!

    29fsgmv.gif


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