Irish Banks May Need 50 Billion Euros: Dukes

20Cent

Forget your empty chairs and the Enda VB circus. Here is the real story:



Anglo Irish Bank Corp. Chairman Alan Dukes said the nation’s lenders may need about a further 50 billion euros ($68.2 billion) of capital, more than absorbing a bailout fund for the banks.
The Dublin-based government has already poured 46 billion euros into the banks, and can tap 35 billion euros of extra capital under a bailout agreed last year with the International Monetary Fund and European Union.
“A clean banking core will require something in the region of 50 billion euros,” Dukes, 65, a former finance minister, said in an e-mailed copy of a speech today. “A clean banking restructuring implies the acceptance of irrecoverable losses.”



http://www.bloomberg.com/news/2011-02-08/irish-banks-may-need-an-additional-68-billion-anglo-irish-s-dukes-says.html


If this is not the main story on the 6 O'Clock news I give up!!
Sinn Fein are sounding like the only party who have this right.

ei.sdraob

Filling that gap requires “long term 20 year to 30 year funding, on which there will be no return,” Dukes said.

For gods sake, this is getting ridiculous now, someone somewhere is laughing all the way to the bank quite literary

jammyhog

have'nt you heard we've turned the corner, there's green shoots everywhere, it's gonna be a soft landing and it'll be the cheapest bailout ever

Citizen_Cutback

jammyhog wrote: »

have'nt you heard we've turned the corner, there's green shoots everywhere, it's gonna be a soft landing and it'll be the cheapest bailout ever

Yes, we have turned another corner alright but now we have the ECB in our sights.

It had to happen. Somebody had to call it as it is: AN ECB/Euro crisis. FX Exchange markets don't seem to have reacted yet though!

jmayo

ei.sdraob wrote: »

For gods sake, this is getting ridiculous now, someone somewhere is laughing all the way to the bank quite literary

Yeah banks in Lichenstein, Austria and Switzerland.

Speaking of Austria I wonder who are the depositors in Anglo's old subsidiary ?

Citizen_Cutback wrote: »

Yes, we have turned another corner alright but now we have the ECB in our sights.

It had to happen. Somebody had to call it as it is: AN ECB/Euro crisis. FX Exchange markets don't seem to have reacted yet though!

Well then keep bloody quiet.
BTW what time are EI flights to Zurich and what are the baggage allowances for cash ?

jameshayes

euros:

euro:

20Cent

So is this it?
Game over?
Some default was inevitable this news makes it urgent.

megafan

20Cent wrote: »

Forget your empty chairs and the Enda VB circus. Here is the real story:



Anglo Irish Bank Corp. Chairman Alan Dukes said the nation’s lenders may need about a further 50 billion euros ($68.2 billion) of capital, more than absorbing a bailout fund for the banks.
The Dublin-based government has already poured 46 billion euros into the banks, and can tap 35 billion euros of extra capital under a bailout agreed last year with the International Monetary Fund and European Union.
“A clean banking core will require something in the region of 50 billion euros,” Dukes, 65, a former finance minister, said in an e-mailed copy of a speech today. “A clean banking restructuring implies the acceptance of irrecoverable losses.”




Is this election just helping to distract from really what's going on & still no word from guards or DDP re prosecutions for who is responsible or locate where all the billions have gone..... Meanwhile new FF lite are cleaning their act up but Micheal Martin is still going to keep his cash though! (He'll clean up later?)

ilovesleep

Its reported over in p.ie that if the ECB continues to lend to our banks it will bring down the Euro. So thats it. We're defaulting. May the balls drop off you Ahern, Cowen, Lenihan and everyone else that took ireland down.

Maj Malfunction

So on one hand we are being told another 35 billion is need and on the other 50 billion is needed. So really what we learning here is that the experts don't know exactly, and it is very difficult to predict.

If we go the Sinn Fein economic policy of burning senior bond holders or any bond holder for that matter. Would their supporters be happy if their savings that they have on deposit in a bank were to get burned because the bonder holders got burned, because they used your money on deposit and invested it in a bond to earn a return.

So now I hear them say but my savings are guaranteed! Yes they are, but only if the government/country can afford the guarantee! Last time I checked the IMF/EU were in town to bail out the country cause Ireland Inc. is broke.

Defaulting while an option will mean a significantly increased premium in the future as Ireland would be seen in the market a riskier investment when we do finally exit recession and need to borrow money again on the open market.

Sinn Fein is an excellent protest party and excel at making lots of noise and hot air, however they just don't get economics.

danbohan

ilovesleep wrote: »

Its reported over in p.ie that if the ECB continues to lend to our banks it will bring down the Euro. So thats it. We're defaulting. May the balls drop off you Ahern, Cowen, Lenihan and everyone else that took ireland down.[/QUOTE





your assuming they had any in first place !

jammyhog

Maj Malfunction wrote: »

So on one hand we are being told another 35 billion is need and on the other 50 billion is needed. So really what we learning here is that the experts don't know exactly, and it is very difficult to predict.

If we go the Sinn Fein economic policy of burning senior bond holders or any bond holder for that matter. Would their supporters be happy if their savings that they have on deposit in a bank were to get burned because the bonder holders got burned, because they used your money on deposit and invested it in a bond to earn a return.

So now I hear them say but my savings are guaranteed! Yes they are, but only if the government/country can afford the guarantee! Last time I checked the IMF/EU were in town to bail out the country cause Ireland Inc. is broke.

Defaulting while an option will mean a significantly increased premium in the future as Ireland would be seen in the market a riskier investment when we do finally exit recession and need to borrow money again on the open market.

Sinn Fein is an excellent protest party and excel at making lots of noise and hot air, however they just don't get economics.

i'd safely say that FF, FG and Labour just dont get economics...after all their bull we'll default anyway....why would the bond markets see a default as negative, we'd owe less money so we'd be in a better position to pay, bank debt and sovereign debt are not the same

th3 s1aught3r

jammyhog wrote: »

have'nt you heard we've turned the corner,

Straight into an oncoming truck it would seem

melekalikimaka

jumping the gun a tad lads...

Spudmonkey

Would this make it 96bn in total?

My head is starting to hurt...

tommy21

Jesus christ. This cannot be true?!

danbohan

tommy21 wrote: »

Jesus christ. This cannot be true?!

probably the only untrue part is that it will be higher that 50 billion!

th3 s1aught3r

Spudmonkey wrote: »

Would this make it 96bn in total?

My head is starting to hurt...

It doesnt matter at this stage. They told us we couldnt afford to let the banks fail, now it seems we cant afford to keep them open :rolleyes:

tommy21

danbohan wrote: »

probably the only untrue part is that it will be higher that 50 billion!

:eek:

Spudmonkey

th3 s1aught3r wrote: »

It doesnt matter at this stage. They told us we couldnt afford to let the banks fail, now it seems we cant afford to keep them open :rolleyes:

A billion used be lot of money before, now it's bandied about like your buying sweets.

Roll on the 25th.

My name is URL

ilovesleep wrote: »

Its reported over in p.ie that if the ECB continues to lend to our banks it will bring down the Euro. So thats it. We're defaulting. May the balls drop off you Ahern, Cowen, Lenihan and everyone else that took ireland down.

They could always just allow our own central bank to print the money required.. which they have already done recently

saywhatyousee

we need to get out of the deutschmark and print our own interest free money given out by the government its the only way a country can prosper

saywhatyousee

My name is URL wrote: »

They could always just allow our own central bank to print the money required.. which they have already done recently

ha ha thats is the funniest article i have read in my life america creates money out of fresh air aswell the irish central bank does the exact same as the fed does everyday the whole world is a joke at the minute.talk about making it up as they go along

later12

Wow, the award for most exaggerations in a single thread probably belongs here alright. Perhaps it wouldn't hurt to serve a reminder that this is Alan Dukes' professional opinion, it certainly hasn't been realised and it is unclear as to whether or not the incoming Government would entertain such requirements even if the issue did actually arise! Save your fury for reality, not this apparently rather vague contemplation.

Dannyboy83

I'll wait for Lenihan to comment.

If he says we don't need it, then we do.
If he says it will be 50bn maximum, then double it as a minimum.

Here's another little story nobody is addressing at the moment:

http://www.breakingnews.ie/ireland/lenihan-not-worried-about-potential-mortgage-meltdown-485618.html

Minister for Finance Brian Lenihan said today that he is confident there will not be a huge increase in mortgage defaulters, which could render the bank bailout fund inadequate.

Anglo Irish Bank boss Alan Dukes has said that the €35bn fund for the banks will not be enough.

http://www.breakingnews.ie/ireland/house-repossessions-set-to-soar-492464.html

A leading housing charity fears repossessions will soar this year unless urgent Government action is taken.

“Unless more is done to assist people, we could witness large scale repossessions in 2011 and 2012.”

Sir Oxman

I don't believe Ireland can ever repay the amounts being talked about - what is the big plan then?

aidan24326

gambiaman wrote: »

I don't believe Ireland can ever repay the amounts being talked about - what is the big plan then?

I don't think anybody really knows.

Sticky_Fingers

gambiaman wrote: »

I don't believe Ireland can ever repay the amounts being talked about - what is the big plan then?

There is no plan, they are all flapping around like headless chickens.
FG/Labour/Greens and FF are pinning their hopes on renegotiation with the ECB despite the fact that ECB head Jean-Claude Trichet said that was not an option and it is doubtful that they will be able to reduce the interest rate substantially anyway so we will still be screwed.

The Shinners and the United Left Alliance are talking about completely disowning the banking debt which means that the ECB will be on the hook for the billions upon billions it has already pumped into the Irish banks. If the hard left get their way we would be persona non grata in Brussels and we would have to try and either raise money ourselves on the international bond markets or slash government spending to balance the budget in order to pay for public services.

We are on the horns of a dilemma and are flushed no matter what we choose to do.

thebman

melekalikimaka wrote: »

jumping the gun a tad lads...

Well Alan Dukes is hardly saying this for a laugh at the same time ...

ArtSmart

thebman wrote: »

Well Alan Dukes is hardly saying this for a laugh at the same time ...

dukes seems to mean in the long term, ie un-recovered money, not money been pumped into the banks.

wish he's talk to himself only

thought the article below from goodbody interesting out tonight
http://www.rte.ie/news/2011/0208/economy-business.html

oppenheimer1

thebman wrote: »

Well Alan Dukes is hardly saying this for a laugh at the same time ...

He could be saying it to hurt FF, I doubt it though.