Are Irish banks likely to suffer? I get the impression "the markets" are marked them down based on fears about future exposure? I seem to remember AIB or BOI saying profits would hold up next year but at the same time their shares have taken a hammering.
The market basically doesn't believe their forward projections, particularly their ability to sustain high dividends.Originally Posted by pete
Are Irish banks likely to suffer? I get the impression "the markets" are marked them down based on fears about future exposure? I seem to remember AIB or BOI saying profits would hold up next year but at the same time their shares have taken a hammering.
Time will tell.
There was a small Danish bank that collapsed recently due to commercial real estate problems. Regional Spanish savings banks have similar issues.
http://www.creditwritedowns.com/2008...k-problem.html
Would anybody like to buy some magic beans ??
I believe governments don't usually regulate Investment banks & Insurance companies but are they not supposed to regulate retail banks - are they not supposed to regulate their lending policies?
Only if you pool the magic beans together, artificially separate the pools of beans into sub-tranches of different qualities and sell securities backed by the beans, getting the External Magic Beans Assessment Agencies to rate the likelihood of each sub-tranche of beans being bad.
Then yes, I'll have $30bn worth please.
Do I need to withdraw all my money from the bank and put it into Prize Bonds?
A leading authority on League of Ireland football since 2003. You're probably wrong.
Financial Regulators regulate, based on European and (less so) national Govt legislation. They regulate all banks, investment firms and insurers (life and non-life).I believe governments don't usually regulate Investment banks & Insurance companies but are they not supposed to regulate retail banks - are they not supposed to regulate their lending policies?
The regulate in two areas, prudential supervision (capital adequacy, liquidity etc., ie "financial" controls) and conduct of business/consumer protection.
Government, or the Financial Regulator, tend not to intervene directly in lending policy unless there is a real problem.
Govt have sought to influence policy "softly" of the retail banks by calling them in front of an Oireachtas committee to ask them to state their views of the retail banking market and how their lending policies had changed. They did this at the start of the summer.
You've got to look at management and remuneration strategy here. And OneRedArmy knows only too well now that the chapters on conterparty credit risk now have to be re-written.
worth reading:
http://www.economist.com/finance/dis...ry_id=11897037
It seems the Irish government are planning as new system whereby the state will fund mortgages for the lower paid (nit sure what value this will be set at). Our own retail version of of Freddie/Fannie?
We already have such a system, its called social and affordable housing. Government are spending too much time listening to Tom Parlon and the construction lobby. If I was in Government I'd be a lot more worried about the HP and Dell announcements over the last week or so.
Did you see that Lehman’s Canary Wharf landlord, Songbird Estates plc, had insured Lehman’s rents with AIG?
How's that for bad luck?
True, no need for houses if no jobs left.
Just bumping this in light of this mornings BoI news (puts crystal ball away until next time)
BOI news?Just bumping this in light of this mornings BoI news (puts crystal ball away until next time)
US government (Federal Reserve) all but nationalised AIG as they are taking an 80% share. I suppose the Fed can just print new money
Now I know why the republicans are said to be "red states"
Halifax and Irish Nationwide in big trouble as well.
Seems that HBOS were so desparate that Lloyds were able to haggle an even lower price than was apparently agreed earlier yesterday.BBC:
Lloyds TSB has unveiled details of its £12.2bn takeover of HBOS, a deal it described as a "unique opportunity".
The enlarged group will hold a third of the UK mortgage market, but competition watchdogs will not block the deal as it was backed by the government.
Who is next?
Building houses creates jobs and wealth.
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