Bank Guarantee Extended but some exclusions

independent.ie/business/iris … 39505.html

Was one of the reasons for the Guarantee not that corporates were taking their money out at an alarming rate? Given all that has been seen of the NAMA’d banks since then why would a company keep any dosh in those banks after September?

:open_mouth:
These are the categories which I thought the 3 month extension was intended to benefit.

Most of the bank bonds issued post guarantee will mature before 29th Sept. Extending the guarantee will not extend their maturity date. They will have to be rolled over and issuing 3 month notes is hardly worthwhile. The 3 month extension never really mattered to these bonds.

Where 3 months had some value was for large deposits and interbank loans - the money that’s easy to move. The only other category was for bonds that had maturity dates during the three month period (there should be too much of these).

It seems that the extension has been pretty much rendered useless by the EU. I would expect that a new and more expensive guarantee will now have to be created before October to cover these bits that the government, er, opted to exclude …

mehole!

I suspect that the ‘exclusions’ from the bank guarantee scheme will have to be reviewed given the state of Irish bank borrowing from the ECB. It is typical of these incompetent idiots in the DOF to either (1) not realise the dependency of Irish banks on short term interbank borrowing or (2) try to spin the extension of the bank guarentee scheme by announcing that they are limiting the guarantee initially only to announce that it will remain unchanged in a later communique.

If this article in the Sunday Indo is to be believed.

independent.ie/business/irish/deposit-guarantee-will-leave-taxpayer-on-hook-for-years-2245545.html

A further extension of the bank guatantee?

independent.ie/business/irish/government-makes-request-to-extend-bank-guarantee-3112268.html

This coupled with the reports regarding bank mortgage losses implies that they are in big trouble.

centralbank.ie/stability/Documents/MFR/Macro-Financial%20Review.pdf - Mr Anderson’s find

independent.ie/business/european/deutsche-fears-mortgage-crisis-to-force-second-irish-bailout-3112203.html

Time for plan B

Some institutions are now offering juicier rates on large deposits if the depositer will agree to the funds being unguaranteed.

Does the guarantee even matter at this point? We’re paying the unguaranteed bonds anyway.