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Dublin: 6 °C Tuesday 25 November, 2014

Comment #1560242 by Peter Richardson

Peter Richardson Sep 5 12:07 AM #

YouNeek, it is not an idea or a proposed solution. It is a sad inevitability although I cannot predict how soon it will happen.

A large company I am involved in moved out all of our deposits from AIB and I know that the CBI does not want non-life insurers to leave their reserves on deposit in AIB.

The cost of borrowing of a surviving bank will depend on a number of factors, including capital adequacy, the confidence that there is not a massive undisclosed capital hole due to under provisioning for bad debt, investor confidence and exposure, if any, to other insolvent Banks.

Bank of Ireland has eliminated most of its exposure to AIB.

I am not choosing any of this. The Banks busted themselves in their reckless over lending which created an asset bubble in the residential property sector.

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Read the article where this comment appeared:

Ulster Bank CEO: ‘It costs money to live in a house’… TDs: ‘We know’…

Ulster Bank CEO: ‘It costs money to live in a house’… TDs: ‘We know’…

Members of the Oireachtas Finance Committee took exception to Jim Brown’s repeated assertion this afternoon that “there is a cost to living in a home”.

Comment thread:

  • On a separate and security issue, it would behove an Garda Siochana to assess the degree of potential risk to the personal safety of senior bankers.

    These are the reasons:-

    1. The highly provocative statements being made by the senior Bankers.
    2. The obvious dismissal of the welfare of the borrowers.
    3. The increasing visual public profile of the individuals involved and the insights that we have into their true nature.
    4. The increasing despair of victims.
    5. The sense of extreme injustice.
    6. The obvious unaccountability of the Bankers and the absence of redress for reckless lending.

    It is not inconceivable that senior bankers could be targeted by those with a sense of grievance.

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    • Peter Richardson Sep 4 10:07 PM #

      I can understand the reasons for the red thumbs.

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    • YouNeek Sep 4 11:09 PM #

      You do understand that on side you have borrowers and the other savers. So my question is, why do consider borrowers are entitled to a monopoly of the sense of injustice. What about people who are the savers, the pensioners, small businesses, people putting littles bits away each month, what about them. To suggest some sort of amnesty for borrowers, you are asking the above people to take the hit, not banking executives.

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    • Youneek, actually I’m more radical than that. I am suggesting keeping one Irish Bank and letting the other insolvent Irish banks fail. They are past saving.

      Behind the officially recorded 20% of mortgage default, there is another 15% waiting in the wings and worse is to come after that. On a bell curve, the 20% visible default is layered on top of other less severe default but accumulating default which will become more and more serious.

      The Banks have substantially under provided for mortgage impairments.

      In contrast propping up the Irish Banks, even if you could, and retaining the mass of unaffordable mortgages will condemn Ireland to a Japanese style two and a half decade continuous recession.

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    • YouNeek Sep 4 11:38 PM #

      Ah do which to let go, AIB of course, those unlucky sods with deposits there. Just about 60-70 billion of savings potentially wiped out. How will that solve anything? Plus by letting one bank go, you will inevitably dramatically increase the cost of borrowing for the surviving bank which will have to be past on to customers. You clearly haven’t thought through your idea.

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    • Peter Richardson Sep 5 12:07 AM #

      YouNeek, it is not an idea or a proposed solution. It is a sad inevitability although I cannot predict how soon it will happen.

      A large company I am involved in moved out all of our deposits from AIB and I know that the CBI does not want non-life insurers to leave their reserves on deposit in AIB.

      The cost of borrowing of a surviving bank will depend on a number of factors, including capital adequacy, the confidence that there is not a massive undisclosed capital hole due to under provisioning for bad debt, investor confidence and exposure, if any, to other insolvent Banks.

      Bank of Ireland has eliminated most of its exposure to AIB.

      I am not choosing any of this. The Banks busted themselves in their reckless over lending which created an asset bubble in the residential property sector.

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    • Bobby Phelan Sep 5 2:30 AM #

      When are the people of this country REVOLT ???

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    • Dermot Ryan Sep 5 2:51 AM #

      The gardai would love to help but the turf and the security issues in Belmullet are sucking up all the scant resources , and because there is a public recruitment ban we can’t hire any bodyguards!
      Ah sure they’ll be alright, although evictions could bring a few lone wolves out of our national pack ! Nothing more dangerous than an Irishman on a vengeance mission ;be he right or wrong !
      In fact I think the Vikings stole the beserk in the beserker with a few lovely Irish colleen slave girls that they took in their earliest raids !
      Even the Romans the most bloodthirsty of them all knew to stay out of Ireland , because what Ireland needs Ireland has !
      Silly capitalists , and all they had to do is convince us that we were winning , imagine that years of planning all gone to hell over a few acres of bog !
      Even Cromwell stayed out of the bogs , then again deep in the heart of every bully there’s a coward busting to get out !
      They could have had Ireland for a song but they have crossed the line with those who were driven to despair ; that’s against the ancient meld of Ireland ! let them reap what they have sown !

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