Ireland Strives to Rebuild Trust in Its Banks

Ireland Strives to Rebuild Trust in Its Banks → nytimes.com/2010/12/11/busin … f=business

Bottom line, capital is leaving the country, without any resolution of the local banks situation there can be no trust from bank customers and the crisis only ends in default.

So the ‘critics’ believe the Nama haircuts where too conservative? and wouldn’t be applied in a Swedish or US type scenario.

Mmmm, where would this leave the 80% peak to trough school of thought?

It’s nonsense. Only nationalised banks in the US and Sweden used the state bad banks (in the US case, the Savings and Loans banks were busted and the assets put in the RTC, in the case of Sweden the two bust banks were nationalised, stripped of their bad assets and then resold). The Japanese did asset purchases and while the bad banks made money, the recapitalisation money that was required has not returned value. It also did not solve the problem of zombie banks…