• Home
  • NAMA property for sale
  • About
  • The Developers
  • The Tranches

NAMA Wine Lake

Click the green link above for latest news and over 2,600 related articles. NAMA – National Asset Management Agency – part of Ireland's response to its banking crisis and property bubble

Feeds:
Posts
Comments
« Delivering the Programme for Government pledge on retrospective commercial rents
The mystery of the €7bn deposit into Irish banks by Minister Lenihan on the eve of the general election »

Present estimates of bailing out the banks

April 3, 2011 by namawinelake

Certainly Sean Fitzgerald, David Drumm and Michael Fingleton have attracted widespread outrage at their perceived greed, incompetence and perhaps more. But as the latest estimates of the cost of bailing out the banks, totalling €70bn, show, the cost for AIB is going to be just as excruciating as the cost of bailing out Anglo and INBS.

The bailout information comes from

(a) the Department of Finance in September 2010 which showed €46bn committed to the banks.

and (b) the release from the Central Bank of Ireland/Department of Finance on Thursday last which showed an additional €24bn committed.

And here are the totals by institution

And finally, here’s a little chart to show that relatively-speaking, AIB’s position is really no better than Anglo’s or INBS’s. And frankly Bank of Ireland and Irish Life aren’t great either.

I suppose in fairness, part of the injections into AIB and BoI is “buffer capital”, and given the banks subjected to stress tests are projected to make a combined total of €3.9bn in operating profits in the three years to end 2013, then who knows, we might get some part back. Also there is talk about burden-sharing with subordinated bondholders and some part of the capital needs might be met privately. But still, for all that, it is surprising that there hasn’t been a greater outpouring of outrage towards AIB in particular, but Bank of Ireland and Irish Life also. The Independent today reports that as the time for the stress test announcements grew near last Thursday afternoon, former AIB CEO, Eugene Sheehy was to be found on a bench in the grounds of Trinity College where he is now reportedly a history student with an annual income from his pension put at €458,000. “It’s a sad day” was his reaction to the day’s announcements before donning his Stealth-technology membrane and disappearing into the university buildings. The fact is that the losses at his former bank are every bit as painful as those in the other institutions.

Advertisement

Share this:

  • Twitter
  • Facebook
  • Reddit

Like this:

Like Loading...

Related

Posted in Banks | 3 Comments

3 Responses

  1. on April 4, 2011 at 10:49 am JR

    “It’s a sad day”.

    progress indeed – he was far more negative 2.5yrs ago.

    Eugene Sheehy, former AIB CEO, October 2008 – “We’d rather die than raise equity”


  2. on April 5, 2011 at 7:21 pm JR

    to NAMA or not to Nama????

    http://uk.finance.yahoo.com/news/AIB-BoI-move-smaller-loans-targetukfocus-2108920854.html?x=0


    • on April 5, 2011 at 7:34 pm namawinelake

      @JR, there seems to be a difference of opinion between three parties – IMF/EU/ECB being party #1, Department of Finance being party #2 and Bank of Ireland being party #3. The Memorandum of Understanding made it clear that these sub-€20m exposures were to have been transferred from AIB and Bank of Ireland by 31st March, 2011 and our creditors have not formally withdrawn that condition but maybe we will have better clarity after they complete their review mission next week. The Department of Finance is adamant that, in accordance with the Programme for Government, these loans will not transfer to NAMA, no way, no how! And that is what yahoo report above. However BoI , when acknowledging the results of the stress tes, repeatedly made reference to loans potentially available for transfer to NAMA (see below). I would guess it will be our creditors who give us instruction as what to do with these sub-€20m exposures.

      Click to access statement-on-the-2011-prudential-capital-assessment-review-and-capital-requirement-01-04-2011.pdf



Comments are closed.

  • Recent Posts

    • Test – 12 November 2018
    • Farewell from NWL
    • Happy 70th Birthday, Michael
    • Of the Week…
    • Noonan denies IBRC legal fees loan approval to Paddy McKillen was in breach of European Commission commitments
    • Gayle Killilea Dunne asks to be added as notice party in Sean Dunne’s bankruptcy
    • NAMA sues Maria Byrne and Graham Byrne in Dublin’s High Court
    • Johnny Ronan finally wins a court case
  • Recent Comments

    Wisemama on Eddie Hobbs’s US “partner” fir…
    Dorothy Jones on Of the Week…
    Sean Bean on Eddie Hobbs’s US “partner” fir…
    John Foody on Of the Week…
    Wisemama on Eddie Hobbs’s US “partner” fir…
    otto on Of the Week…
    Frank Street on Of the Week…
    Wisemama on Eddie Hobbs’s US “partner” fir…
    John Gallaher on Of the Week…
    John Gallaher on Of the Week…
    who_shot_the_tiger on Eddie Hobbs’s US “partner” fir…
    Sean Bean on Eddie Hobbs’s US “partner” fir…
    otto on Of the Week…
    Brian Flanagan on Of the Week…
    Robert Browne on Gayle Killilea Dunne asks to b…
  • Twitter Updates

    • Funniest case in Irish legal history? 1. ex-Cllr Fred Forsey convicted of RECEIVING a corrupt payment 2. developer… twitter.com/i/web/status/1… 4 years ago
    • Really looking forward to this at 9pm tonight, esp the first Garda on the scene. Well worth reading this background… twitter.com/i/web/status/1… 4 years ago
    • Tea time on the day the president of the ECB tells us we [in Ireland] are paying more interest on our loans than th… twitter.com/i/web/status/1… 4 years ago
    • “I am grateful for you to refer to Mr Sugarman...on the specific question of Unicredit, responsibility at ECB lies… twitter.com/i/web/status/1… 4 years ago
    • @JMcGuinnessTD now confronts ECB about "the honest whistleblower" @WhistleIRL and his disclosures of liquidity issu… twitter.com/i/web/status/1… 4 years ago
    • Details, including court documents of class action in New York against Ryanair and CEO Michael O'Leary.… twitter.com/i/web/status/1… 4 years ago
    • Draghi tells @paulmurphy_TD the ECB doesn't remove govts, the people do, that's democracy. Bet the people will be m… twitter.com/i/web/status/1… 4 years ago
    • Wow! Draghi says there is no net interest cost for the Anglo bonds whilst they're held by the Irish central bank. T… twitter.com/i/web/status/1… 4 years ago
    Follow @namawinelake
  • Click on date for that day’s posts

    April 2011
    M T W T F S S
     123
    45678910
    11121314151617
    18192021222324
    252627282930  
    « Mar   May »
  • Blog Stats

    • 5,113,837 hits

Create a free website or blog at WordPress.com.

WPThemes.


Privacy & Cookies: This site uses cookies. By continuing to use this website, you agree to their use.
To find out more, including how to control cookies, see here: Cookie Policy
  • Follow Following
    • NAMA Wine Lake
    • Join 1,326 other followers
    • Already have a WordPress.com account? Log in now.
    • NAMA Wine Lake
    • Customize
    • Follow Following
    • Sign up
    • Log in
    • Copy shortlink
    • Report this content
    • View post in Reader
    • Manage subscriptions
    • Collapse this bar
 

Loading Comments...
 

    %d bloggers like this: