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Thread: State may have to take stake in Irish Life & Permanent

  1. #1
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    Default State may have to take stake in Irish Life & Permanent

    IL&P did not have huge exposure to the Commercial developments loan portfolios but they have the biggest exposure to mortgage/buy to let portfolios.

    The new bank stress tests may now see IL&P taken under the wing of the state.

    That will mean all 6 Irish banks will be in receipt of state aid:-

    THE GOVERNMENT may be forced to take a large stake in Irish Life & Permanent (IL&P), the only lender to have so far avoided taking State capital, as a result of the severity of this week’s bank stress tests.

    The move would give the Government part or majority ownership of a sixth and last privately owned Irish bank, and may lead to the effective nationalisation of the domestic banking sector.
    http://www.irishtimes.com/newspaper/...293300142.html

  2. #2
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    Default Re: State may have to take stake in Irish Life & Permanent

    These banks were candidates for regime change for some time.

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    Default Re: State may have to take stake in Irish Life & Permanent

    There was a practice in a part of this island of tarring and feathering........I could think of a few who could do with such an exercise.

  4. #4
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    Default Re: State may have to take stake in Irish Life & Permanent

    Irish Life pays top managers bumper performance bonuses

    Sunday March 27 2011
    IRISH Life Investment Managers (ILIM), part of the Irish Life & Permanent Group (IL&P) kept afloat by the bank guarantee scheme, has paid some of its 130 staff "performance bonuses" in the last week

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    Default Re: State may have to take stake in Irish Life & Permanent

    These institutions should not be paying bonuses in the main because they should no longer exist.

    The fact that at least 4 of the 6 have been on expensive life support from public funds means those who work there should be grateful for a salary at all never mind bonuses.

    Oh well. News like this brings the day closer when retribution is deemed appropriate to more people so it serves some useful purpose.
    Think National. Act Local. Oh- and superstition is just the dark matter of human history.

  6. #6
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    Default Irish Life & Permanent Shares Suspended

    Following yesterday's announcement that IL&P may be nationalised and the subsequent 45% drop in the bank's share price; trade in Dublin and London has just been suspended until Friday.

    A frenzy of selling started yesterday when it emerged that stress tests are expected to reveal a capital hole of well over €1 billion which will have to be filled by money from the State.

    In a statement, the company said it had noted the speculation about the potential need for more capital as a result of bank stress tests.
    More <here> RTE
    And <here> Irish Times
    Last edited by musashi; 30-03-2011 at 07:38 AM.

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    Default Re: Irish Life & Permanent Shares Suspended

    The CEO, board and executive will of course, all have taken the honourable course and resigned. Wont they?

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    Default Re: Irish Life & Permanent Shares Suspended

    That would mean taking responsibility Baron and that is something Bankers don't do.

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    Default Re: Irish Life & Permanent Shares Suspended

    More of this to come when the Stress Test results are out.

  10. #10
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    Default Re: Irish Life & Permanent Shares Suspended

    This appeared last night:

    Irish Stress Tests May Leave State in Control of All Banks

    March 30, 2011, 3:50 AM EDT

    (Updates with Bank of Ireland shares in sixth paragraph.)

    March 30 (Bloomberg) -- The Irish government may be forced to take controlling stakes in Bank of Ireland Plc and Irish Life & Permanent Plc, the last of the country’s biggest lenders to escape state control, following tomorrow’s stress tests.

    “They’ve clearly got most to lose,” said Oliver Gilvarry, head of research at Dublin-based Dolmen Securities, who has “sell” rating on both banks. “It’s difficult to see how either will end up less than 50 percent owned by taxpayers.”

    The Irish Central Bank will at 4:30 p.m. tomorrow publish its third round of stress tests. The results will determine if the two can avoid joining four of the country’s biggest banks in majority state ownership after they all logged record losses as the country’s decade-long real estate bubble burst.

    Ireland may require banks to raise an additional 27.5 billion euros ($39 billion) of capital, according to the median estimate of 10 analysts surveyed by Bloomberg News. The government has pledged to provide that money if banks fail to raise it themselves from a 35 billion-euro fund set up under the country’s international bailout in November. Shares of the two lenders have declined by more than 50 percent since that rescue.

    Shares Decline

    Irish Life, whose shares fell 45 percent in Dublin trading yesterday to 40 euro cents, has sought a temporary suspension in trading in its stock until April 1, after the results of stress tests are revealed, it said in a statement today. The assessment is “not completed and the quantum of capital that may be required by the group, and the source of that capital, is not yet finalized,” it said.

    Bank of Ireland’s shares fell as much as 2.4 euro cents, or 9.7 percent, in Dublin trading to 22.3 cents, marking its lowest level since March 17, 2009. They were down 8.9 percent at 22.5 cents at 8:39 a.m.

    Spokesmen at Bank of Ireland, the central bank and Finance Ministry in Dublin declined to comment.

    The government has already taken control of Anglo Irish Bank Corp., Allied Irish Banks Plc, EBS Building Society and Irish Nationwide Building Society after injecting 46.3 billion euros into the industry over two years.

    Niall O’Connor, a London-based analyst at Credit Suisse Group AG, expects the government to take a stake of about 60 percent in Bank of Ireland, the country’s biggest lender.

    “It’s struck me for some time that the bank would find it very difficult avoiding this,” he said. “Still, government control is not necessarily a bad thing as it aligns the interests of government with that of investors in looking to generate a profit.”

    Capital Shortfall

    Even before the latest stress tests, the regulator ordered Bank of Ireland, already 36 percent state-owned, to raise about 1.4 billion euros, more than its market value of 1.3 billion euros today.

    Irish Life, the only government-guaranteed lender to avoid a bailout so far, was ordered to raise 243 million euros in November. That’s now equivalent to twice its market value today.

    The Dublin-based company may require more than 1 billion euros to allow its banking unit to operate without support from the company’s life and pension operations, Eamonn Hughes, an analyst with Dublin-based securities firm Goodbody Stockbrokers, said in a note to clients yesterday. The stress tests “may drive this base figure higher again,” he said.

    Both Bank of Ireland and Irish Life, the country’s largest life assurance and pensions company, will “fight hard” to avoid falling under government control, said James Forbes, director of investment solutions at Dublin-based securities firm Bloxham, which manages about 1 billion euros of assets.

    Asset Sales

    “A pragmatic and likely solution would be for the government to give both companies a certain period of time to sell further assets and raise equity, while pledging to support them if they are not successful in raising money privately,” he said.

    The previous Irish government had been in talks to acquire non-voting shares in Bank of Ireland, two people with knowledge of the situation said Feb. 4. The securities would convert into stock if the bank failed to raise the same amount in a rights offering to repay the government, they said.

    Bank of Ireland was established in 1783. It was appointed official banker to the Irish government when the state became independent from the U.K. in 1922.

    “It would be foolish to assume anything other than Bank of Ireland falling under majority state control,” said Brian Lucey, associate professor of finance at Trinity College, Dublin. “If they do avoid that, it’s a signal that the government is low-balling the number.”

    http://www.businessweek.com/news/201...all-banks.html
    Would it be too much to hope for by thinking that perhaps now people in Ireland will take to the streets and not move from the front of the Dail until we get some real answers about why our politicians and senior civil servants continue to lie through their teeth?

    Perhaps the reality of it lies in a previous thread about Ireland being too middle class to protest...
    Last edited by SeanD6; 30-03-2011 at 11:01 AM.

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    Default Re: Irish Life & Permanent Shares Suspended

    Quote Originally Posted by SeanD6 View Post
    This appeared last night:



    Would it be too much to hope for by thinking that perhaps now people in Ireland will take to the streets and not move from the front of the Dail until we get some real answers about why our politicians and senior civil servants continue to lie through their teeth?

    Perhaps the reality of it lies in a previous thread about Ireland being too middle class to protest...

    There won't be a middle class left in five years time.

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    Default Re: Irish Life & Permanent Shares Suspended

    Glib answer, what's the point in labelling?? On the streets NOW! The only way for these so-called agents of change in the new coalition to understand that they'd better come clean on the whole crock of sh1te.

    B

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    Default Re: Irish Life & Permanent Shares Suspended

    Quote Originally Posted by barrym View Post
    Glib answer, what's the point in labelling?? On the streets NOW! The only way for these so-called agents of change in the new coalition to understand that they'd better come clean on the whole crock of sh1te.

    B
    When and where ?

  14. #14
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    Default Re: Irish Life & Permanent Shares Suspended

    Lets not forget, people, that for most of its history, Irish life was in state ownership, and this worked reasonably well! Therefore, why all these calls to ensure that Irish Life "must" return as soon as possible to private ownership?

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    Default Re: Irish Life & Permanent Shares Suspended

    I sense an end to the honeymoon period...
    Нооруз пиээ пурылыа выиттыа


    'Our goal is to conquer state power for the Irish working class'
    Pat Rabitte, 1987

    "Can I ask whether this is what the men of 1916 died for: a bailout from the German chancellor with a few shillings of sympathy from the British chancellor on the side?"
    Michael Noonan, November 2010

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