IT - Key change to bank guarantee … 16583.html

Would someone kindly ask the OAPs to hit the streets again and protest about this one, it’s probably going to end up costing them and us a lot, lot more than the €100m for their medical cards!

I wasn’t big on the idea that one bank should cover another bank’s losses. However, when I saw the extremely low premium being charged for the guarantee, this was a necessary buffer. Prior to this latest change, other banks were in the first loss position. Now this buffer has been removed and the premium hasn’t been increased to reflect the greater risk to the taxpayer (at a minimum it should have doubled). This is reckless.

LulaLenihan’s assertion that this is the “cheapest bailout” is idiotic. It’s cheap (mispriced) for the banks, that’s about it.

This makes a multi-billion euro bail-out of developers look like a sensible policy. It makes becoming a Subprime lender look clever.

Come back Haughey, Come back Ahern. All is forgiven.
Give me corruption over stupidity any day.