IBF Mortgage Lenders Pledge to Help Homeowners

This is a press release from the IBF.

I don’t see much new here. Maybe the 6months from the non-recapitalised banks.

Personally I’d expect the banks to bury their heads in the sand, pretend that their non-performing are, in large part, performing. Then try to run interest in arrears through interest income in their annual reports (generally this is flagged, so they’ll try use a different description). Pretty much the same as they did with construction/developer debt. Eventually, they’ll look for a bail-out.

Aha… you are probably right here…
The problem isn’t big enough for them yet so give it a year of interest roll ups and before you know it we’ll have another NAMA for the residential mortgages.
They obviously like the NAMA model so why not push for another one.

This is the PR exercise before the next bailout

The image that the IBF is tring to promote

  • to the public is “we’re on your side”
  • to their staff is to reduce the chance of tiger kidnappings and verbal abuse at the tills
  • to the government “the IMF said to say that we have your back” <there’s that one letter difference thing again (Iceland/Ireland)(IMF/IBF)>
  • to the money markets, the loans are performing “see our loan books, no defaults”
  • to the EU, NAMA is justified over plain nationalisation “no defaults - just yet”
  • to Ireland’s trading partners, Ireland will be competitive but there is no fire sale here so you all might as well trade as normal rather than wait for a fall.
  • to their IBF partners “No, I’m not brick’n it. Why! are you?”

The reality is that the banks are drowning in a bucket of shit and head shot now would be the humane thing, where there is a chance for a phoenix bank that can be well regulated and never ‘too big to fail’ to replace the wilily zombies of today.