Irish banks pass new stress test

Scofflaw

NEW stress tests on Anglo Irish Bank and Irish Nationwide found that there is no need for the State to inject additional money into the two institutions.

The Central Bank said that BlackRock Solutions, which carried out reviews of the other Irish banks earlier this year, had looked at Irish Nationwide's mortgage, commercial property and other lending books and found that the previous estimates were "robust".

The announcement comes after Bank of Ireland, Irish Life & Permanent revealed plans to impose losses of as much as 90pc on junior bondholders. Minister for Finance Michael Noonan (above) said the move to "burn" the junior, or subordinated, bondholders was in line with Government policy.

Something I would consider, on the whole, to be neutral news - good only in the context of an already appalling situation, but better than other possibilities. Still, it would seem to put a cap on the endless addition of bank bailout costs to our debt.

cordially,
Scofflaw

pog it

Funny, but I heard TV3 ran a story at 5.30 yesterday saying that these two banks would need additional funding.

*by the way I need to verify this*

I did see Six one on RTE and they said they wouldn't.

Cookie_Monster

Where (when) have we heard that before...

Personally I don't believe that for a second, in 6 months time they'll be looking for more money

ardmacha

Personally I don't believe that for a second, in 6 months time they'll be looking for more money

Perhaps you'd like to tell us why you doubt the credibility of the American organisation doing the rating?

lmimmfn

ardmacha wrote: »

Perhaps you'd like to tell us why you doubt the credibility of the American organisation doing the rating?

maybe something like this -http://www.businessinsider.com/goldman-sachs-ireland-quinn-2010-9

paddy0090

Blackrock consulting may be a well respected institution but isn't it working off the assumption that there will be no restructuring of sovereign debt across the eurozone. Tbf it's probably the best they or anyone else can do. The models that these institutions use while powerful are far from bulletproof.

What matters most to Irish banks living or dead is going to happen somewhere else. I think this is irrelevant. Even if they(whoever's crunching the numbers) are right we've been wrong too many times for it to matter now.