the bank bailouts

amandstu

I am not sure if this has been raised before but is there any issue of unfair competition involved with the government of a particular country investing in its own banks?
Does that count as anti-competitive? (I realise that this must count as a trivial post)

antoobrien

amandstu wrote: »

I am not sure if this has been raised before but is there any issue of unfair competition involved with the government of a particular country investing in its own banks?
Does that count as anti-competitive? (I realise that this must count as a trivial post)

Yes it had been raised, it's the reason that the PNs exist as writing off the debt that IBRC owe the Irish central bank would have been considered state aid and anti-competitive.

amandstu

thanks ! Every litle bit of information counts. (I suppose!)

noodler

We have recieved European Commission approval for every bank recapitalisation we have undertaken.

Xantia

noodler wrote: »

We have recieved European Commission approval for every bank recapitalisation we have undertaken.

It was/is in their own (EU's) interest for us to do this.
Just because we received 'approval' from them does not mean it is morally or even financially the correct thing to do.