Banks need a furthur 24 billion

th3 s1aught3r

Stress test figures show Irish banks need €24 billion. Breakdown is AIB €13.3 billion; Bof I €5.2 billion; EBS €1.5 billion;IL&P €4 billion

Each Irish bank to have a loan to deposit ratio of 122.5% by 2013 :eek:

helimachoptor

Woohoo we're rich, what a depressing disaster of a country we are turning into.

Panrich

€24bn added to €46bn already ploughed into the banks. A nice round €70bn :rolleyes:

Inquitus

Panrich wrote: »

€24bn added to €46bn already ploughed into the banks. A nice round €70bn :rolleyes:

Divvy it up between the 1.2m of us who actually pay tax and you get a cool 58.3k each. :eek:

RichardAnd

And after they get it, what then?

Bob_Latchford

Is this extra 24bn funded or do they have to go back to IMF/ECB?

What haircut is assumed in this stress test, heard it was only 12%?

20Cent

Live press conference here:

http://www.rte.ie/news/2011/0331/banks_tracker.html

"Restore market confidence" sounds unlikely at this stage regardless of capital injections

That_Guy

Ugh what a complete disaster.

Social welfare budget - €21 billion
Additional bank bailout - €24 billion



Could buy at least 4 space shuttles for the same bloody price.

omg a kitty

What about Anglo?
Is this €24bn more than the €35bn from the EU/IMF package of just €24bn?

Scofflaw

Is this €24bn more than the €35bn from the EU/IMF package of just €24bn?

At first sight, it's €24bn of the €35bn. Did the government already put in the €10bn Lenny was going to put in immediately, or did they delay that until after these tests?

Report here: http://www.financialregulator.ie/industry-sectors/credit-institutions/Documents/The%20Financial%20Measures%20Programme%20Report.pdf

cordially,
Scofflaw

ToxicPaddy

According to Anglo themselves they dont require anymore funding, which is surprising really..

Scofflaw

ToxicPaddy wrote: »

According to Anglo themselves they dont require anymore funding, which is surprising really..

AIB have been the elephant in the room for rather a while now. Seems like the €24bn includes the €10bn Lenihan was going to put in.

cordially,
Scofflaw

omg a kitty

ToxicPaddy wrote: »

According to Anglo themselves they dont require anymore funding, which is surprising really..

Scofflaw wrote: »

AIB have been the elephant in the room for rather a while now. Seems like the €24bn includes the €10bn Lenihan was going to put in.

cordially,
Scofflaw

So its good news?...well..better than spending €35bn

th3 s1aught3r

Scofflaw wrote: »

AIB have been the elephant in the room for rather a while now. Seems like the €24bn includes the €10bn Lenihan was going to put in.

cordially,
Scofflaw

Didnt AIB pass the last stress test with flying colors ?
I really hope they have done their homework this time. Especially in relation to the mortgage/property market potential falls

OmegaRed

I've always wanted to own a bank now I have a share in several (just like everyone else) hurray!

/em, sarcasm

PeterIanStaker

We are completely screwed.

Its not even funny at this stage the mess FF have gotten the country and its finances into.

The new govt won't be able to sort this out & will have to default.

Permabear

This post has been deleted.

Seth Brundle

RichardAnd wrote: »

And after they get it, what then?

There will probably be another need for finance.

zig

Scofflaw wrote: »

At first sight, it's €24bn of the €35bn. Did the government already put in the €10bn Lenny was going to put in immediately, or did they delay that until after these tests?

Report here: http://www.financialregulator.ie/industry-sectors/credit-institutions/Documents/The%20Financial%20Measures%20Programme%20Report.pdf

cordially,
Scofflaw

I gather they have now committed that 10bn, I think thats what Noonan said, it looks like its the 24bn of the 35bn, so does that mean our bailout is 74bn overall?(including our own pension fund).

Disappointed with Noonan, not surprised but a bit disappointed that there will be NO burden sharing whatsoever, considering they sounded like they were going that when they were elected a few weeks ago.

ei.sdraob

Was reading a history book on plane there, the Spanish plundered about 100 billion worth of gold and silver in todays money from the new world first few centuries after discovery.

That should put into perspective I hope what all these billions related to banking mean

beeftotheheels

ei.sdraob wrote: »

Was reading a history book on plane there, the Spanish plundered about 100 billion worth of gold and silver in todays money from the new world first few centuries after discovery.

That should put into perspective I hope what all these billions related to banking mean

That we should try to find another new world to plunder in order to fund our debts?

loldog

How much will the annual interest payments be?

.

beeftotheheels

loldog wrote: »

How much will the annual interest payments be?

.

According to Pearse Doherty a little over €1.2bn a year but that assumes all at the higher EC rate and not NPRF or IMF borrowings being used. Still likely to be close to €1bn though.

ei.sdraob

beeftotheheels wrote: »

That we should try to find another new world to plunder in order to fund our debts?

No that there are incredibly crazy numbers involved here

But anyways i am more or less completely out of the banking system here now, it can all go to hell for all i care now, i made my exit now.

PeterIanStaker

Permabear wrote: »

This post had been deleted.

Oh yeah, that.

(we're screwed)

Mister men

The slow slow road of turning the banks debt into soverign debt continues. New government same story.

Rubik.

The ECB was supposed to announce today that it was underwriting the plan by providing medium-term funding for Irish banks, but there are internal disagreements within the ECB's Governing Council over the facility.

http://www.reuters.com/article/2011/03/31/us-ireland-idUSTRE72U3YD20110331

ashleey

Permabear wrote: »

This post had been deleted.

short selling was banned 2 years ago!

What I can't work out is: is the 17bn that Anglo lost last year added to the deficit as per the instructions of Eurostat to Portugal in revising up their budget deficit?

ashleey

Am I allowed to just post a link to a video? but all hail Morgan Kelly:

http://www.youtube.com/watch?v=11CCxv2ueiQ

th3 s1aught3r

Rubik. wrote: »

The ECB was supposed to announce today that it was underwriting the plan by providing medium-term funding for Irish banks, but there are internal disagreements within the ECB's Governing Council over the facility.

http://www.reuters.com/article/2011/03/31/us-ireland-idUSTRE72U3YD20110331

What happens if the ECB wont play ball

Amhran Nua

ashleey wrote: »

short selling was banned 2 years ago!

I think that might have been naked shorting, a quite different animal.

Predator_

Still no one has been arrested:mad:
Weak dumb Irish

De Dannan

Amhran Nua wrote: »

I think that might have been naked shorting, a quite different animal.

we will all be naked soon if this keeps up
Back to the caves

ei.sdraob

De Dannan wrote: »

we will all be naked soon if this keeps up
Back to the caves

Rock Bottom Tracker Mortgages :P from Allied Cavemen Bank?

PeterIanStaker

De Dannan wrote: »

we will all be naked soon if this keeps up
Back to the caves

Damn right. Stock up on the tinned food and get yourself a 12-gauge.

Back to barter fairly soon.

Scofflaw

zig wrote: »

I gather they have now committed that 10bn, I think thats what Noonan said, it looks like its the 24bn of the 35bn, so does that mean our bailout is 74bn overall?(including our own pension fund).

I can't find any reference to them having put in the €10bn, and the way the figures are being done (€46bn+€24bn = €70bn) means that the €24bn includes the €10bn.

zig wrote: »

Disappointed with Noonan, not surprised but a bit disappointed that there will be NO burden sharing whatsoever, considering they sounded like they were going that when they were elected a few weeks ago.

Perhaps they've been somewhat put off by the idea that we would thereby do our potential shaky-economy allies a disservice:

Ireland making good on its threat to impose losses on senior bank bondholders would precipitate a funding crisis for lenders across southern Europe, according to CreditSights Inc.

“The fallout would be big and it would be bad,” said John Raymond, a London-based analyst at the independent research firm. “The senior unsecured market would shut down, at least for a while. Right now, the bigger and better Spanish and Italian banks can still access the market. That could end.”

Bloomberg

cordially,
Scofflaw

beeftotheheels

Scofflaw wrote: »

Bloomberg

I guess this comes back to the EU interest rate. If we have to shut up on burden sharing to protect Italian and Spanish banks then the interest rate at which we borrow from our European allies should reflect the fact that we are being asked to take pain to protect others i.e. EU and not just Irish taxpayers should be bearing the costs so a tranche of the EC funding should be at EC borrowing rates and not carry a punitive markup.

xshayx

Rubik.

th3 s1aught3r wrote: »

What happens if the ECB wont play ball

According to RTE's 6 o'clock news the ECB is due to make a statement later, so we will have to wait and see what they have to say. Maybe the reported differences of opinion have been resolved.

iffy_2007

i thought Finna Fail, sorry I mean Fine Gael were not putting a single cent more into the banking system?????

Scofflaw

beeftotheheels wrote: »

I guess this comes back to the EU interest rate. If we have to shut up on burden sharing to protect Italian and Spanish banks then the interest rate at which we borrow from our European allies should reflect the fact that we are being asked to take pain to protect others i.e. EU and not just Irish taxpayers should be bearing the costs so a tranche of the EC funding should be at EC borrowing rates and not carry a punitive markup.

Unfortunately those primarily funding the bailout and those we are "protecting" by not acting unilaterally aren't exactly the same countries - indeed, the latter are our natural allies against the former. And whether we like it or not, it was the Irish government's unilateral guarantee that largely made the issue of Irish bank bondholders a confidence vote in the European banking system.

cordially,
Scofflaw

later12

Scofflaw wrote: »

I can't find any reference to them having put in the €10bn, and the way the figures are being done (€46bn+€24bn = €70bn) means that the €24bn includes the €10bn.

It does indeed. 7 billion of that 10 billion is currently unavailable as Brian Lenihan put this amount into the liquidity pool of the Central Bank after suggesting that he had no mandate to give it to the banking system as part of a restructuring process. That will now be taken back from the Central Bank and placed with the rest of the restructuring facility as it is called upon.

alfa beta

iffy_2007 wrote: »

i thought Finna Fail, sorry I mean Fine Gael were not putting a single cent more into the banking system?????

don't be silly - that was before the election.....;)

Nollaigl

Well we're on the highway to hell and the painfull road to default!

Gumbo

iffy_2007 wrote: »

i thought Finna Fail, sorry I mean Fine Gael were not putting a single cent more into the banking system?????

they said they wouldnt put a penny more that the already allocated 35Bn into the banks, so this injection has undershot by 11Bn which hopefully we dont need, and indeed a few of the banks have some time to raise their own money so we might not need the full 24Bn.

ei.sdraob

some interesting figures on RTE about 25 mins in

* €46.275 bln cost to date for banks (excluding NAMA i take it...)

* €24 bln more needed after stress tests

earlier in feature was meantioned that Irish banks owe ECB/CB €150 bln

ugh oh "worlds cheapest bailout"

ei.sdraob

kceire wrote: »

they said they wouldnt put a penny more that the already allocated 35Bn into the banks, so this injection has undershot by 11Bn which hopefully we dont need, and indeed a few of the banks have some time to raise their own money so we might not need the full 24Bn.

They tried that before, didnt work

edit: new presentation from DoF here

mrgaa1

so is this the final input to the banking system. If the banks need another 5billion why not give it to them now?

So as the banks have completely and utterly failed due to their complete reckless lending why should those who borrowed pay back?

Dannyboy83

How exactly are we going to pay all of this debt? LMAO!

Time to beg for some EU Structural funds I'd say.

theofficepest2

And this in a country of 4 million Think about if you scaled this problem up to a country of the size of the USA it would equate to 7 trillion (70 * pop usa / pop ire) I think a billion has become small in a world of such large companies and profits, but it is a huge chunk of change Also where are the details of how much of the 70 is expected to be gone into the ether, never to return also FG/Labour, meet the new boss, same as the old boss