Banks' €280m dividend to State available in 'weeks'

[grumpy]

THE STATE may be able to draw on its first €280 million dividend from the two main banks within “a matter of weeks”, a Dáil committee heard yesterday.

John Corrigan, chief executive of the National Treasury Management Agency (NTMA), told the Public Accounts Committee that the agency’s preference would be to receive the funds in cash rather than as shares in the banks.

A share alternative would become due if cash payments could not be made.

The first such dividend payment, from Bank of Ireland, is due on February 20th, but is unlikely to be transferred by that date because of restrictions on dividends imposed by the European Commission.

The commission has said the two main banks should not make the payments while it is assessing their plans for restructuring. AIB is due to make its first €280 million payment in May.

irishtimes.com/newspaper/fin … 73000.html

That’ll make a huge difference.

[whizzbang]

I guess the government will have to give them €300 million to pay for it first though?

[mr_anderson]

So we give them billions, they give us millions, and shortly we will have to give them even more billions.
Guess everythings rosy then.

Amazing the lengths people go to in order to keep up the pretence that all is well.
Such pathetic bullshit.

[yoganmahew]

I don’t believe we will get the millions either, except in some bogus token held back from the recapitalisation way. In fact, thinking about it, that is exactly what will happen…

[mr_anderson]

@yoganmahew

I don’t believe we will get the millions either, except in some bogus token held back from the recapitalisation way. In fact, thinking about it, that is exactly what will happen…

In glorious bank shares you mean !

[Puck_may_be_Famous]

@mr_anderson

@yoganmahew

I don’t believe we will get the millions either, except in some bogus token held back from the recapitalisation way. In fact, thinking about it, that is exactly what will happen…

In glorious bank shares you mean !

Not even bank shares.

**An IOU **for bank shares in the future.

If(when) they turn out to be worthless.

[markf909]

Didn’t see this posted else where

rte.ie/news/2010/0219/boi.html

State to take 15.7% stake in BoI on Monday
Friday, 19 February 2010 18:53

The State is taking 15.7% stake in Bank of Ireland on Monday.

The shareholding is in lieu of a dividend owed to the Government by the bank.

[yoganmahew]

Oh. Goodness. Guess there was no other way. Thanks for that!

[Nanda_Devi]

Little bit more here from The Department of “Bury it on a Friday Evening” Finance
finance.gov.ie/viewdoc.asp?D … ry+2010&m=

Bank of Ireland issuance of ordinary shares to the National Pensions Reserve Fund
The Minister for Finance, Mr. Brian Lenihan T.D., welcomes the issue by Bank of Ireland to the National Pensions Reserve Fund of €250 million worth of its ordinary shares in lieu of a cash payment of this year’s coupon due on the preference shares which it received under the recapitalisation agreement. This ensures that taxpayers are remunerated in a timely fashion for their investment in the bank.

[yoganmahew]

@Puck may be Famous

Seriously, I thought they would’ve fudged this one.

Given that they didn’t and that was their avowed intention, you have to ask what, or indeed, who stopped them?

[Puck_may_be_Famous]

There appears to be 1004 million ordinary shares issued to date. Thats over a billion!! Open to correction.

ise.ie/app/equityDetails.asp?equity=11904

At todays price of €1.48, €250 million would buy you 168,918,910 shares.

This would give you a new total for outstanding ordinary shares of 1172 million.

Giving the taxpayers’ new shares 14.3% of the company, of voting rights and of any future dividends.

There is no way BOI will allow this to happen.

The taxpayer will be given an IOU written on the back of a fag box and told to fuck off.

I wasn’t too far out in my calculation. We did a bit better. Their shares must have had a poor time of it since Jan 19th.

Anyone still holding BOI shares should sell now for whatever they can get. This is the clearest sign yet that they’re going to zero.

[discostu]

I presume our friends in AIB are facing a similar dilema???

[dipole]

In view of what has happened with BOI this evening and the reasons given is the same going to happen with AIB.

Will there be a sell off on both Banks shares on Monday? Is there any reason why AIB might not have it’s share holding diluted while BOI’s share holding is diluted?

[mikewest]

@yoganmahew

@Puck may be Famous

Seriously, I thought they would’ve fudged this one.

Given that they didn’t and that was their avowed intention, you have to ask what, or indeed, who stopped them?

Now where is that other thread about Brussels

Here thepropertypin.com/viewtopic.php?f=50&t=28113

Isn’t there a little matter about NAMA approval being slowly delayed from the same place. What are the odds on it getting full or immediate approval now, lengthening steadily I’d guess.

[verbatim]

And right before the Eastenders special too. Sneaky!

Looks like the EU isn’t that pliant after all.

[BertieInExile]

Didn’t see this posted else where

rte.ie/news/2010/0219/boi.html

Does David Murphy have a clue?

“So how was the bank going to be able to repay the state so what’s happened is there’s been an agreement reached whereby the state …will be paid in ordinary shares.”
(Not an agreement, a white elephant of a gift based on BOI bye laws everyone would like to change but there isn’t time.
The “agreement” line is being pushed in the government press release. Maybe that’s where he got it.)

“That’s not something the state particularly wants but it really shows that you know other investors aren’t around.”
(Yeah?
He’s cleaned up his act since losing out on the top job, but I think I liked it better when he was unintelligible as opposed to unintelligent.)

[yoganmahew]

I think the BoI byelaws bit is a red herring. I don’t see that the EU competition authorities could allow BoI (and indeed AIB) to avoid paying common equity since this was the agreement they had for recapitalisation if the coupon could not be paid in cash (an agreement you have to think the EU had a hand in). The reasoning being that it would benefit the owners of BoI versus unrecapitalised banks that BoI got recapitalisation money for nothing. The same logic would have to be true of AIB.

[Dreaded_Estate]

Is this separate?
reuters.com/finance/stocks/k … 0219112200

Bank of Ireland In Talks Over Fresh Government Stake-Reuters
6:22am EST

Reuters reported that Bank of Ireland was in talks with Irish and European authorities over whether Dublin would have to acquire a fresh stake of up to 20% in the Company by the start of next week.

[alan75]

Presumably BOI and (maybe) also AIB stock prices will be obliterated on Monday morning? How could there be a positive spin put on this development sneaked in over a weekend?

[discostu]

Presumably BOI and (maybe) also AIB stock prices will be obliterated on Monday morning? How could there be a positive spin put on this development sneaked in over a weekend?

NEVER A BETTER TIME TO BUY !!!