You hit the nail on the head there. Their main problem is, is that all their loans and collateral is tied in to long term mortgages 30 years. Their reserves or deposits aren't big enough to cover expenses and liabilities. What they would of done was get a bridging loan to tie them over and then when they got the cash immediately repay the loan. The same would happen the next month and earlier in the year this would of been fine. However now with banks pulling the plug on inter bank loans the like of these banks are suffering.
You can see it here with PTSB trying to get people to open savings accounts with them so they can get sufficient funds to cover their costs.
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