Honohan: banks will be fixed by end of the year

Not sure what Honohan is sucking but tis not a lolipop, we’ll see alright.

Fixed the quote.

ECB says "Not so much…":

FRANKFURT—Banks in the euro zone will suffer “considerable” loan losses this year and next, which could amount to an additional €195 billion ($239.26 billion) in write-downs and could weigh on banks’ profitability, the European Central Bank said.
It estimated that banks in the euro bloc may suffer net write-downs on loans and securities of €90 billion in 2010, and an additional €105 billion in net losses in 2011.
“We are experiencing now a second wave of write-downs, which relate to the performance of loans,” ECB Vice President Lucas Papademos said at a media briefing. “This is not unexpected. Although write-downs on loans will decline, they will continue, simply reflecting the overall performance of the economy,” he said, speaking on his last day in office.
Mr. Papademos will retire from his position at the end of Monday. Portugal’s Vitor Constancio will take up the post from Tuesday.
The ECB cautioned that loan losses in 2011 may even exceed current estimates.
“Heightened sovereign risks and possible second-round effects of the fiscal consolidation that is necessary in most euro area countries could pose some downside risks to economic growth in the area,” the central bank said. “Should these risks materialize, loan-loss provisions should most likely be higher in the period ahead.”
The ECB lowered its previous estimate of cumulative write-downs on loans and securities from 2007 to 2010, to €515 billion from €553 billion previously.
“The overall [financial sector] resilience has increased, taking into account that capital buffers have been strengthened,” Mr. Papademos said. “But, at the same time, we are aware of the challenges ahead, particular with respect to public finances.”
The ECB estimates that large euro-zone banks will have to extend, or roll over about half of their longer-term debt outstanding by the end of 2012.
“With several euro area governments also facing heavy financing requirements over the coming years…this raises the risk of bank bond issuance being crowded out,” the ECB cautioned in its report.
The euro zone’s aggregate budget deficit this year is expected to be 6.6% of gross domestic product, more than twice the 3% maximum allowed by the European Union’s Stability and Growth Pact.
Mr. Papademos warned about the dangers of an “adverse feedback between the financial sector and public finances continuing.”
“The emphasis is on continuing, because it’s already going on,” he said.

online.wsj.com/article/SB1000142 … TWhatsNews

When he says “fixed” does he mean “sorted” as in they will all be nationalised!!!

What the hell is he talking about. When did you last “internalise” ? When will people learn to speak the fucking language!

the banks will be fixed and ireland will be fucked beyond belief . thanks honohan for this amazing insight

What’s another year…

https://www.vinyltap.co.uk/gallery/jo/johnnjl6840668479710970.jpg

That’s one for here:
[quotesfromthebubble.blogspot.com/]
(https://quotesfromthebubble.blogspot.com/)

Sounds like an unfinished line… the banks will be fixed …and the country will be fucked…

Doesn’t he know it already is ?

I suppose we’ll have to wait and see then how right or wrong Honohan is on this, but in any case he should have given the taxpayers credit where it’s due and said ‘that THEY’VE fixed the banks’.
Until then, the suspicion has got to be that Honohan is just talking out of his Holegan.

independent.ie/business/iris … 04998.html

What a super end to the day.

bwerhrhrhrhrhrhrhr

This bit says to me that Bungaloid and jmc were on the right track about counterparty risk - had Anglo offloaded risk to Lehman’s, risk that it had bought from the other Irish banks? IRS? You betcha.