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Thread: Almunia Says Bank Guarantee Was A Mistake

  1. #1
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    Default Almunia Says Bank Guarantee Was A Mistake

    http://www.irishtimes.com/newspaper/...299069031.html
    Joaquín Almunia told The Irish Times that the intervention in September 2008 resulted in citizens having to assume responsibility for losses that would have been “better distributed” in the absence of an unlimited guarantee.

    Mr Almunia, who is overseeing the €70 billion rescue of the Irish banks for the EU’s executive branch, also warned against the development of an entrenched duopoly as the AIB and Bank of Ireland “pillar banks” recover.

    The commissioner said the guarantee curtailed the capacity of the authorities to impose losses on senior bank bondholders and undermined the Irish sovereign.

    Interviewed in advance of a visit to Dublin today, the commissioner said “Yes, indeed” when asked whether the guarantee as enacted was a mistake.

    Mr Almunia, who at the time was EU economic and monetary affairs commissioner, believes he is not the only top-ranking European official to hold such views. “I never carried out an opinion poll on this particular issue but I have a feeling that I am not the only one who thinks this.”

    He said the then government’s failure to notify the EU authorities in advance of the intervention was “very unfortunate” and noted that the initiative came as a big surprise among senior euro zone figures.
    Almunia says that the Irish Government was warned in 2001 about overheating and that the Irish and the European Council did not want to know.

    Almunia favours greater central control and points to the overlarge size of the Irish Banks in comparison with Irish GDP.

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    Default Re: Almunia Says Bank Guarantee Was A Mistake

    A very thoughtful contribution from the Arsenal keeper.

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    Default Re: Almunia Says Bank Guarantee Was A Mistake

    That is interesting where Almunia says the Irish Government were warned about the overheating economy in 2001.

    Previously I've only been abe to see clear warnings about the size of the property and consumer bubble back into 2006- when I can say for sure that the Government were being warned on a quarterly basis by the IMF.

    If the ECB were warning back as far as 2001 and the IMF also then bang goes the 'we all partied' line out of the last government.

    Thats the end of that fat little duck and the blaming of Lehman brothers as well.
    Think National. Act Local. Oh- and superstition is just the dark matter of human history.

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    Default Re: Almunia Says Bank Guarantee Was A Mistake

    Quote Originally Posted by Captain Con O'Sullivan View Post
    the 'we all partied' line
    I like to think that Brian parties on - with Gerry, snorting lines of purity off Katy's heavenly body, while Holy God smiles indulgently. It gives me a great sense of peace.

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    Default Re: Almunia Says Bank Guarantee Was A Mistake

    Quote Originally Posted by Richardbouvet View Post
    A very thoughtful contribution from the Arsenal keeper.
    nice


    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

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    Default Re: Almunia Says Bank Guarantee Was A Mistake

    Quote Originally Posted by Captain Con O'Sullivan View Post
    That is interesting where Almunia says the Irish Government were warned about the overheating economy in 2001.

    Previously I've only been abe to see clear warnings about the size of the property and consumer bubble back into 2006- when I can say for sure that the Government were being warned on a quarterly basis by the IMF.

    If the ECB were warning back as far as 2001 and the IMF also then bang goes the 'we all partied' line out of the last government.

    Thats the end of that fat little duck and the blaming of Lehman brothers as well.
    There were warnings in the IMF reports but they were in civil language and were easily ignored.

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