Brits want to sell UB to Paddy


#1

businessetc.thejournal.ie/ulster … 4-Jun2013/


#2

No, really? :smiley:


#3

I believe it was the the great GW Bush that said. “Fool me once. Shame on you. Can’t get fooled again”


#4

Feckers will probably try and sneak the 6 counties into the deal too as a sweetner.


#5

Thought initially this was an old resurrected April 1st thread but taint de case Ma,they really do think we are that fucking stupid.


#6

here’s the BBC article so you can avoid thejournal.ie
bbc.co.uk/news/uk-northern-ireland-22766801


#7

If by “we”, you mean the government, then they’re probably right… :frowning:


#8

Jaysus. “Porky” Bacon must be advising the Brits now too! :laughing:


#9

Isn’t that precisely why it would want it?

As it stands Ulster Bank is primed to hit the market with repossessions. As Graham Taylor might say, “Do I not like that!?”


#10

Govt. might not want it for themselves but Other Banks might want to neutralise a competitor…all in the public interest don’t cha know.
Just yesterday they neutralised the post office.

That’ll just leave the Credit Unions which McCreevy didn’t quite manage to eradicate from the financial ecosystem in Ireland.


#11

At the least the rebranding exercise could be cheap. There must still be an old soviet warehouse somewhere with job lots of hammer and sickle insignias.


#12

Maybe it isn’t even a case of whether the Irish government would want it or not. Ulster Bank Ireland Limited is a company registered in Dublin which is currently keeping the doors open because it’s main (sole?) shareholder is pumping money into it to cover losses. What’s to stop RBOS saying “enough is enough” and pulling the plug leaving Irish depositors to avail of the Irish deposit protection scheme. The Irish government might well decide that buying the bank is preferable to that outcome.


#13

Hmmmm - I wonder if Elderfield has given his opinion on something to someone.


#14

That’s a grand conspiracy theory…I suppose its a possibility. It does strike me as holding a gun to your head and threatening you’ll pull the trigger yourself. The write downs in a liquidation would be enormous.

A liquidation would have lots of aftershocks for the UK though. Political and reputational for Cameron and UK generally.


#15

Can they do that? Ulsterbank is a wholly owned subsidiary of RBS.


#16

I wouldn’t have thought it’s in conspiracy theory territory at all. It’s the normal process shareholders of a loss making company would go through. The write downs might indeed be enormous but this would only make sense if the UK government actually considers Ulster Bank to be insolvent so that the write down of RBS’s investment is going to be 100% either way. That’s not a big leap considering the informed speculation that the other main banks were insolvent before their recapitalisation and maybe even still are by some measurements. If the UK government is indeed contemplating the sale of UB to the Irish government I can’t think of any more likely leverage they would have to push this through.

It’s still a company limited by shares. I don’t think that the fact it is wholly owned is a legal barrier to it being liquidated although it would certainly cause reputational damage for RBS.


#17

As Mrs Thatcher would say:
no! no! no!

RBS CEO Stephen Hester was in meeting Enda Kenny recently. But it has to come from Robert Peston that the Irish Government are looking at shafting the Irish taxpayer yet again. It would have been nice to see Namawinelake report on this.

The British government is really getting desperate to try and get out of the banks before the next election in less than 24 months. They should not be entertained.


#18

Time to call this bluff.
How about seeing their Ulster Bank and raising em Peter Sutherland?
That should scare em off.


#19

I see the point and its a matter of how insolvent it is…but what is the alternative…what is their threat?
If you don’t swap your UK NAMA loans for Ulsters shit Irish commercial book we’ll…what?
Burn Irish depositors
Wind the thing down and get 20p in the pound instead of 60p. Do we really know enough about their balance sheet to know who would get burned from the effects of that?

There are loads of Irish based British citizens who use Ulster, and Irish based UK companies etc. I don’t think burning depositors is feasible at all politically for Cameron ? 1 billion a year is drop in the ocean to the UK exchequer.

If they start acting the maggot on repossessions Honahan will just withdraw their banking licence and force them to turn into a wind-down vehicle anyway


#20

Eh… are we into potential run territory again or wha? :confused: