BOI & AIB Shares Suspended

displaced dub

Hi All

Bad news if you own one of the above as they have now just joined AIB and BOI as being suspended as of tomorrow morning.

Squeaky bum time!!!

TheInquisitor

Trading in bank shares to be halted

Updated: 20:11, Wednesday, 30 March 2011

Trading of shares in AIB and Bank of Ireland is to be temporarily suspended tomorrow.




Trading of shares in AIB and Bank of Ireland is to be temporarily suspended tomorrow ahead of the publication of the outcome of stress tests on the banks at 4.30pm tomorrow.

Shares in Irish Life & Permanent had been suspended this morning after plunging 45% on Tuesday on reports that the State could end up taking majority ownership of the group.

The Irish Stock Exchange and the Central Bank say the suspension of bank shares is being done in order to avoid the possibility of information or rumours having a 'disorderly' effect on the market in the banks' shares.

The Central Bank will publish the outcome of the tests at 4.30pm, while Finance Minister Michael Noonan will outline the Government's reaction to the Dáil shortly afterwards.

Earlier, Minister for Social Protection Joan Burton said the results of the stress tests were serious for the Irish economy.

She said a refinancing arrangement had to be agreed with the EU in order to clear up the banking issue, which she said was a 'major cloud on the horizon'.

IL&P may have to sell pensions arm

Irish Life and Permanent is expected to face selling its profitable life and pensions operation as part of a commitment to try to raise money under the bank stress tests.

Earlier today the company suspended its shares on the Dublin and London stock markets for 48 hours due to a 45% slide in its share price yesterday.

While the final figures are not yet known, Irish Life and Permanent will have to raise much more money than previously thought under the bank stress tests. It will be given a deadline to raise that cash which may exceed €2 billion.

That is likely to mean it will have to sell its life and pensions division as well as other assets. That money would go to fill a hole in its banking division.

But even after the sell-offs the company is likely to fall short of the required level of capital. That is expected to result in the need for money from the State which will see the company going into Government control.
None of these developments will affect depositors or policy holders. But it will herald big changes for the banking system.

Earlier, trading in Irish Life and Permanent shares was suspended until Friday. The company issued a statement to the stock exchange this morning.

The company said it had noted the speculation about the potential need for more capital as a result of bank stress tests. It added that it would not comment until the stress tests are published tomorrow.

A spokesman for the Department of Finance has said this morning that policy holders with the life assurance business of Irish Life and Permanent are entirely unaffected by this morning's temporary suspension of trading in shares.

Permanent TSB chief reassures customers

The chief executive of Permanent TSB, David Guinane, has also moved to reassure customers that there is no change to the position of either deposit holders or mortgage account customers as a result of the suspension of Irish Life and Permanent shares.

r Guinane said that the position of deposit holders was guaranteed and there would be no change to that guarantee regardless of the stress test results.

'Clearly these are difficult days for the entire banking industry in Ireland, but I can absolutely reassure customers - including those customers who have recently joined us from Irish Nationwide - that nothing that may occur over the coming days will in any way change the deposit guarantee that they have enjoyed in recent months or that they would enjoy in any other bank in Ireland, ' he stated.

He said the objective of the stress tests was to ensure that Irish banks were strong enough to withstand any 'conceivable problems' in the years ahead.

'This process is about ensuring that Irish banks are even stronger in the months and years ahead and capable of withstanding the most difficult circumstances imaginable. It doesn't mean that those circumstances are expected but it does mean that even were they to emerge, the banks will have the strength to get through them,' he said.

http://www.rte.ie/news/2011/0330/banks-business.html

displaced dub

Talk now that BOI now need extra 1bn, if so its now in the same boat as AIB, over 90% owned by the government.

ixus

I was hearing 3Bln for Irish Life and 5Bln for BOI.

The risks of this has been highlighted for a long long time on this forum. For any regular poster/lurker on this forum, you knew the risks.

digme

ixus wrote: »

I was hearing 3Bln for Irish Life and 5Bln for BOI.

The risks of this has been highlighted for a long long time on this forum. For any regular poster/lurker on this forum, you knew the risks.

you mean 50 billion more really though,, drip feed away..........

neris

There goes my inheritence