Yeah seriously, were the staff told or will it be a case of sign here, collect your handshake and pack your bags.
Yeah, he’s giving a 20 minute interview on Radio1 right now.
What the heck do they do in that bank now anyway, apart from shredding stuff
…and where does that leave the lovely Irish Nationwide Building Society?
Not as quickly as the money poured into Anglo though.
Fascinating interview with Mr. Honohan. Will try to link to it later. It’s worth relistening, I think, as he covers a lot of ground.
Reasonably clear in what he’s saying.
Upfront where he can’t comment.
Big changes coming…
Would also seem to be suggesting that CB not buying into residential mortgage timebomb thesis
He did also say that the banks were under-reserved, though, for likely losses.
Part 1 podcast:
rte.ie/podcasts/2010/pc/pod- … atonea.mp3
Interest rate was agreed on Friday and the leaked to RTE as 6.7%
Well, there are still lots of files to be encrypted, passwords to be lost… transfers to offshore bank accounts to be covered up.
I guess it’s a case of; a lot done more to do!
I’m going to say something unpopular, but we should have a thought for the ordinary grunts in Anglo. I have a friend working there - in a technical role - and this is going to come as a financial and personal hammer blow to him and his family. From what he has told me, his department has been as straight as a die since the crisis began, refusing to do anything that wasn’t entirely above board (and insofar as his technical role allows him make such judgements). Ok, his salary might have been better than other bank workers the last few years, but not that much bigger that being turfed out on his arse with a few weeks notice compensates. Just sayin’.
I don’t think anyone around here would disagree with any of that Larry.
Yeah, Larry, the thought occurred to me too. Not a pleasant way to find out about redundancy.
Whats missing here ?
Its not that long since the official line was that an ‘orderly’ wind down of Anglo would take ten years.
Its even a shorter period since Dukes admittedly talking out of his arse was jibbering about Anglo having a useful and profitable future.
Now just one day after we give away the shirts off our grand-childrens backs -it can be wound down in a matter of weeks. Something smells very odd to me.
My expectation is that the name will disappear, but a seperate company will run down the book. So not all jobs would be lost. Something similar to BOSI shut down operations.
Perhaps NAMA could take over the staff and then start to deal efficiently with the loans NAMA has to manage.
Honohan interview fascinating. Took a few notes on each of the main points put to him (I’m very open to correction on any of this, but he spoke very clearly and lucidly for a general audience, so I think I have most of this right. Direct quotes I picked up on in, erm, quotes):
The “only concrete element where we have definitely agreed to increase the national debt” is the €10b capital now going into the banks.
Why didn’t the government put that money in before now? Because the government/ICB strategy all along vis capitalising the banks was one of “wait and see”, assessing how much they needed as time and events moved on. He said at all times they thought the amounts they put into the banks were sufficient (I guess by this he means they weren’t playing politics or optics with the thing).
He didn’t want to put more capital into the banks at this precise moment, but the EZ/IMF insisted we do so in the name of getting the mess sorted now (an insistence he described as no more than a “faster and deeper” version of existing government policy). He says he/the government eventually “went along with that”.
He’d have preferred an insurance scheme backing up the banks balance sheets rather than a straight loan facility, but such a scheme doesn’t exist in the EZ/IMF playbook, so it’s moot.
The €10b capital now going into the banks must “not be wasted in firesales” (!!).
New governments will not be hamstrung in future years, since the terms and conditions of the agreement become less specific after 2011.
€10b going into the banks in “next month or two”, which is enough for the 12% capital ratio. He would be “very disappointed” and “surprised” if we needed to dip into the contingency €25b.
Anglo gone by end of January he thinks.
Mortgage books: this is an area that will be subject to increasing stress testing by the CB, and will be examined on a more “granular” level going forward. But he thinks the stress testing done to date has been solid.
Rabbittegate: He said that if PR is talking about the downgrading of asset backed securities and the knock-on effects that might have on borrowing rates, it’s cool and has been accounted for already.
Any more ticking timebombs in the banks? No evidence there’s a hole we haven’t found. But they continue to trawl the books!
His key aim all through the crisis has been to ensure a bad situation didn’t get worse. He acknowledges this might have meant things didn’t move as fast as they could have done.
Depositors: Don’t worry, the ECB are backstoppng you completely.
In not a sentence he said or in any nuance of tone do I detect anything but honesty from Prof. Honohan.