European Commission's new guidance on bank bailouts

Interesting stuff from Brussels…

europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1180&format=HTML&aged=0&language=EN&guiLanguage=en

That is key.
It has 2 major implications for our banks
(1) Layoffs and
(2) Repricing of unprofitable products (read mortgage margins)

What a load of hot air.

Look at how state support has completely stifled competition. The state’s Anglo Irish Bank have by far the best deposit rates. Government money has meant that AIB are able to subsidise teaser-rate mortgages that foreign-owned banks cannot match.

They will mandate the divestment of operations in other countries.

BoSI parent was aided in the UK and must pull out of Ireland
AIB was aided in Ireland and must pull out of Poland.

Will we see the profitable parts of the business (life and pensions, for example) spun off?

I wonder if AACbank’s recent actions might be building a case for all lenders to have access to NAMA?

Is this Communcation providing grounds to stop NAMA?

Time for another Pin campaign?

RTE news @9 o’clock implied that these new guidlines would affect what price NAMA paid for Bank assets.The gist of what they said was that because the Irish Government would become the dominant player in the property Market it could not abuse it’s position and was therefore oblidged to pay a fair economic price for these asssets and basically not impose any firesales on Banks.I get the impression Linehan has agreed all this shit already with Brussells and is just drip-feeeding the information out to us poor slobs as needs be.Sommers in NTMA has already said Today that He has read the drafts of the Legal structure for NAMA even though it wont be officially published for awhile.Taxpayers as ever are way behind the curve on these things.The Cabinet pissed off for the Summer knowing full well how this thing will play out and left the rest of us gobshites arguing over Mc Carty,s doodling,min pay etc.etc. Jasus I fell like one big sheep BA BA.(not in that way ye perverts)…

chaingang, my reading of the Eurostat directive is that it says the opposite - it will, if anything, push the price the government pays down, especially as there seems to be some allowance for government to buy equity at market price to recapitalise and for it to not count as debt.

edit see here: viewtopic.php?f=50&t=23666

Course, I could be wildly off the mark again :smiley:

YM, Chaingang is accurate re rte. The yes-man filling in for George Lee said that as the government was the only buyer they were like a monopoly. Then there was some bizarre logic that they’d have to overpay to avoid abusing the participants.

The bullshit is getting worse. I think the partial price discovery caused by ACC has forced out this new crap.

That bulletin also said that most of NAMA’s work would be done and dusted by Christmas with 50 developers loans transferred across.

Oh I don’t doubt chaingang’s listening prowess, it is the muppets that I think have it wrong…