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Govt must invest additional €9billion in Anglo Irish

  • 25-03-2010 12:53AM
    #1
    Euro_Kraut
    Closed Accounts Posts: 1,957 ✭✭✭


    Front of tomorrow mornings Times has the story:
    http://www.irishtimes.com/newspaper/frontpage/2010/0325/1224267014555.html
    Bank chief says State must invest €9bn to keep Anglo afloat


    SIMON CARSWELL and CONOR LALLY

    THE GOVERNMENT will have to invest up to €9 billion in additional capital to keep State-owned Anglo Irish Bank afloat and reinvent the bank as a business lender under its plans, according to the bank’s chief executive Mike Aynsley.

    In his first interview since joining Anglo last year, Mr Aynsley told The Irish Times that the costs of either liquidating the bank immediately or running it down over time were at least twice as expensive.

    A liquidation would cost the State between €27 billion and €35 billion, he said, while running it down over 10 years would cost between €18 billion and €22 billion.

    When you consider that last year painful cuts to Social Welfare, Public Sector Pay and capital expenditure was €4billion, where are we going to find the money for this?
    Tagged:


Comments

  • #2
    flynnlives
    Registered Users, Registered Users 2 Posts: 739 ✭✭✭flynnlives


    FF will pull out all the stops to ensure "their" bank doesnt go under, too much dirt on them. Remember they come first, country second.


  • #3
    Pete4779
    Closed Accounts Posts: 622 ✭✭✭Pete4779


    Euro_Kraut wrote: »
    Front of tomorrow mornings Times has the story:
    http://www.irishtimes.com/newspaper/frontpage/2010/0325/1224267014555.html



    When you consider that last year painful cuts to Social Welfare, Public Sector Pay and capital expenditure was €4billion, where are we going to find the money for this?

    By borrowing it. I am unsure why it makes sense to borrow 9 billion to then pay back e.g., 12-15 billion for it over the next 5-10 years. Maybe a better idea would be to give everyone in the country a €4500 tax rebate and they could pay off their short term debt, credit cards, etc,.

    Then, with less high interest loans crippling the real economy of doing business by selling things and not the BS "commerical lending" economy, we would be fine.

    Oh right but also all the Anglo employees would have to lose their jobs, so can't have that, or the financial dealings coming out in the wash.


  • #4
    Rjas
    Closed Accounts Posts: 6 ✭Rjas


    on vincent brown tonight an actor was going on about this 9 billion and he's trying to get his head around the figure so he says 1 billion is 100 million so thats 900 million,3 or 4 others were ther plus vb and they all went along wit this are the not 8100 of the mark here!!


  • #5
    oppenheimer1
    Closed Accounts Posts: 5,733 ✭✭✭oppenheimer1


    Pete4779 wrote: »
    By borrowing it. I am unsure why it makes sense to borrow 9 billion to then pay back e.g., 12-15 billion for it over the next 5-10 years. Maybe a better idea would be to give everyone in the country a €4500 tax rebate and they could pay off their short term debt, credit cards, etc,.

    Then, with less high interest loans crippling the real economy of doing business by selling things and not the BS "commerical lending" economy, we would be fine.

    Oh right but also all the Anglo employees would have to lose their jobs, so can't have that, or the financial dealings coming out in the wash.

    The more I keep seeing it the less I like about this idea of NAMA for the little guy. Its bad enough having to pay to clean up the banks in order to save the economy. Giving rebates to pay off debt isn't fair on those that have been prudent.

    I accept NAMA as a necessary evil, this would just be wreckless.


  • #6
    Euro_Kraut
    Closed Accounts Posts: 1,957 ✭✭✭Euro_Kraut


    Rjas wrote: »
    on vincent brown tonight an actor was going on about this 9 billion and he's trying to get his head around the figure so he says 1 billion is 100 million so thats 900 million,3 or 4 others were ther plus vb and they all went along wit this are the not 8100 of the mark here!!

    Unfortunately this is 9 European Billions and not American Billions. :o


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  • #7
    Liam Byrne
    Closed Accounts Posts: 18,163 ✭✭✭✭Liam Byrne


    Euro_Kraut wrote: »
    Unfortunately this is 9 European Billions and not American Billions.

    I had this debate before and apparently in financial circles everyone uses the U.S. standard.

    So 9 billion euro = €9,000,000,000
    And yet 9 billion bicycles = 9,000,000,000,000

    Mad, I know, but apparently true.


  • #8
    Liam Byrne
    Closed Accounts Posts: 18,163 ✭✭✭✭Liam Byrne


    State must invest €9bn to keep Anglo afloat......

    ....according to the bank’s chief executive Mike Aynsley.

    Who the hell does this arrogant, bonus-paying little **** think that he is, dictating what the state "must" do ?


  • #9
    Stinicker
    Banned (with Prison Access) Posts: 7,099 ✭✭✭Stinicker


    I think the people should march and just simply burn the Dail to the ground if they even entertain the idea, the entire cabinet should be shot for treason if it goes ahead. At this rate my great grand children will be repaying loans becuase of these shower of scumbags.


  • #10
    Valmont
    Registered Users, Registered Users 2 Posts: 5,857 ✭✭✭Valmont


    What would actually happen if the government were to let Anglo fail completely? Perhaps some of the more economically savvy posters could explain it to me?


  • #11
    Euro_Kraut
    Closed Accounts Posts: 1,957 ✭✭✭Euro_Kraut


    Liam Byrne wrote: »
    I had this debate before and apparently in financial circles everyone uses the U.S. standard.

    So 9 billion euro = €9,000,000,000
    And yet 9 billion bicycles = 9,000,000,000,000

    Mad, I know, but apparently true.

    Yeah just been reading on it. You are right. There is no difference between the way an American defines $9 billion and we define €9 billion. It 9,000 million everywhere.

    I was under the mistake impression that Americans considered 100 million to be a billion.

    I would like to apologize to America.


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  • #12
    murphaph
    Registered Users, Registered Users 2 Posts: 19,132 ✭✭✭✭murphaph


    Can we discuss the alternative? I don't know enough about this area to speculate, but as the bank has now been nationalised, does the state not own all its assets (and liabilities), so would be liable for this 35bn if it were to be liquidated right now?

    It seems to me the mistake was in making any effort to save anglo at the start. Govt policy should have been to stand resolutely behind the 2 big banks, nationalising if needed be, which are of systemic importance (no matter what anyone says) and allow all other financial institutions to fail.

    Anglo really sickens me. All this money could have been put to so much better use.


  • #13
    ei.sdraob
    Closed Accounts Posts: 9,364 ✭✭✭ei.sdraob


    murphaph wrote: »
    Can we discuss the alternative? I don't know enough about this area to speculate, but as the bank has now been nationalised, does the state not own all its assets (and liabilities), so would be liable for this 35bn if it were to be liquidated right now?

    It seems to me the mistake was in making any effort to save anglo at the start. Govt policy should have been to stand resolutely behind the 2 big banks, nationalising if needed be, which are of systemic importance (no matter what anyone says) and allow all other financial institutions to fail.

    Anglo really sickens me. All this money could have been put to so much better use.

    how the government is handling this banking situation in the last 2 years is like a train-wreck in slow motion

    there are 2.5 million or so employed workers, about a million of those actually are in the taxnet

    so this would be 9000 euro added to each and every taxpayer (im not counting any interest that would have to be paid on this)

    in this thread > http://www.boards.ie/vbulletin/showthread.php?threadid=2055823846
    some people where arguing that expenses this year (2010) will be less than last year and we have turned a corner, with this news it looks like will endup somewhere north of 70 billion in expenses this year, with the national debt already being above 80 billion

    the state is bankrupt (ha :() people


    €9 000 000 000 :eek:


  • #14
    gandalf
    Registered Users, Registered Users 2 Posts: 26,458 ✭✭✭✭gandalf


    Why did we not let this cess pit of a Bank go under 2 years ago! Oh yeah because of the profile of its customers and their preference for a certain tent at the Galway races!


  • #15
    oppenheimer1
    Closed Accounts Posts: 5,733 ✭✭✭oppenheimer1


    deadtiger wrote: »
    Why did we not let this cess pit of a Bank go under 2 years ago! Oh yeah because of the profile of its customers and their preference for a certain tent at the Galway races!

    Those people were by and large net borrowers from anglo as far as I know, so the bank getting into trouble wouldn't matter a jot to them. Their loans would still be outstanding. They also owned shares in the bank, which following nationalisation are essentially worthless.

    I can't see how preventing anglo from failing protected developers.


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