Are the banks offering to buy themselves?

RTÉ is carrying a story that “A number of investment institutions have confirmed they have approached the Government, with a proposal to co-invest with the State in re-capitalising the Irish Banks.” here

Apparently, the move is being led by The Irish Association of Investment Managers, which is interesting, considering the membership includes arms of the banks themselves (here).

One wonders, just how heavily invested/exposed the investment arms of each of the individual banks are to each others stock. And just how desperate the “Irish” banks are to remain independent.

Blue Horseshoe

I’d need to see more detail, but at face value it seems completely unethical. Their suggestion could only mean using client funds because if it was their own funds then that would be their own capital (which is what they want to keep). If you allow this, then you may as well allow banks to loan themselves capital. If anything, this shows how desperate they are.

This is a desperate attempt to save their bacon (the board and management). It won’t work for the reasons outlined above, we can’t just waive all rules and regulations in crisis.

At least such actions would be consistent with the peculiar version of portfolio diversification practised by the average Irish fund manager.

Of couse we can’t waive all the rules, we can just look the other way while someone else breaks them with implicit government sanction.

Ireland IS different :unamused: … 79480.html

IAIM Members & Contact Details

AIB Investment Managers Ltd.
Anglo Irish Bank
Bank of Ireland Asset Management
Zurich/Eagle Star
F & C Ireland Limited
Aviva Investors.
Irish Life Investment Managers Ltd.
KBC Asset Management
Merrion Investment Managers
Pioneer Investment Management Ltd
Setanta Asset Management
Standard Life Investments

Brian, who are the people that you refer to? They seem like a local crowd to me. It wouldn’t be people that are trying to fund their retirement and have given their money over to IAIM members with a nice 5% taken off the top and the rest thrown into diversification Irish style?

This just keeps getting more incredible. They want to use pension funds. Bank affiliated investment managers should not be allowed make such proposals. The non-affiliated will have a sniff but will walk away. Pension fund trustees should be on high alert. How on earth is Lenihan even giving this consideration. (the only thing I can think of is speed. There’s no need for any due diligence :imp: )

Then they’re talking about €4bn, that’s not enough. The second round of fundraising would wipe out most of this investment.

So the main shareholders of the banks will now report to the banks executives.