Re: Burned bondholders win Anglo case-will Irish banks have to pay compensation?
This brings me to the great unspoken question about Irish banks that have been effectively been nationalised by default and of course more generally about other banks across Europe which have swooned dramatically into the arms of the taxpayers.
My question is; What arrangements have been made towards recovering from these banks over time the amount of public money made available to them during the crisis?
Mention of this is mysteriously missing from these affairs. 'Injecting liquidity' is used as a term alongside 'recapitalising' but who is totting up the bill and at what protective rate of interest do the taxpayers get paid back?
My own suspicion is that of course in some sunny upland of future stability these banks will be again offered to private shareholders. The implication being that such a privatisation will repay the exchequer for money spent keeping them breathing.
But who keeps a count of this? In my lifetime I know of a handful of banks who ended up on the public lifeline and I have yet to see a scenario where public money spent on them has been fully recovered.
If IBRC is to be floated at some mythical future date I want to know who is doing the calculations and whether the cost of liquidity is being clawed back.
Public services, schools, hospitals and so on have been cut back, cancelled, and taxes increased because of these institutions. How will the government in that future day of glory ensure the taxpayer gets that money back with an appropriate adjustment for inflation?
Or will IBEC get the benefit of such a future privatisation? Would IBRC even be big enough again if properly regulated to ever repay the public money spent on it?
Think National. Act Local. Oh- and superstition is just the dark matter of human history.