I havent seen much on this topic but it seems that the game changer debt deal is off the table as we suspected all along. It amazes me how little this has been picked up on by the media in this country but then again the media in this country…
here’s a piece from the indo with the figures on the sheer amount of shares in aib which joan thinks we will make a killing on
That’s a good read. Cheers me up no end. 520 Billion AIB shares and instead of paying dividends for our 99.8% shareholding they just issue another couple of billion shares.
Joan Burton must be senile to not see the problem here.
There have been a couple of articles in the Indo recently by Colette Brown that clearly go against the ‘Confidence in the Media’ policy. A breath of fresh air, but I hope she can write Sports.
As an accountant, I’m quite sure Joan understands ***exactly ***what she sees.
But as tackling the issue does not garner votes from her target audience, the problem is left for another day.
I don’t think a retrospective recapitalisation using the ESM was ever on the table. It was floated in some quarters but I don’t think that was ever likely in reality.
Can anyone give me an answer on what AIB wasn’t nationalised in the first place? Why have the charade of the stub listing? My theory is that so many politicians owned stock in it and were under the mistaken belief even in 2009 that they still had a recovery value.
I’d imagine it was the senior citizens who owned stock that concerned the politicians. You don’t want to be remembered as the party that took the shares away from the most important voting bloc in the country.
I think they didn’t want to end up with AIB bank debt on the government books.
Another reason is it’s harder to re-privatize a fully nationalized company. Once they’ve some shares out there they’ve an easy path to market and the unions don’t get up to their usual stunts, blocking and eventually profiteering via ESOTs.
For the state it’s irrelevant if an individual share is worth almost nothing, the bank itself is valued by the NTMA at 10B. I’d be surprised if the state doesn’t sell a big chunk off once the stress tests are done. Instead of it being an ordeal like selling Bord Gais Energy it’ll just be a one day news story announced after the sale is organized.
Adding thousands to the ranks of Public Servants might have been a factor too. Haven’t we seen a bit of the unions playing that card?
yes indeed when trying to make sense of most Irish politicians and their decision making process is to first remember these people are not very bright and can be fooled into believing most things so called experts pedal to them.
Joan is no different, the media tell us she was an accountant so she must know how to balance the books oh yes of course. But remember Joan also said d social is stimulus spending to the economy so we cant cut it. Thats pretty funky logic by anyone standards.
in my opinion whats important to remember with Joan and Labour is that they believe if they increase the free money to permanently idle and people who choose to live on welfare then their poll figures will go up. What they don’t see is that this voter will either not vote or had decamped to anti-everything sinn fein and wont be back anytime soon.
Labour = more taxes on the workers to pay for ever increasing government spending and it will always be that way.
Heros to existing AIB shareholders? The government diluted the shares to get to the 99% shareholding, for existing shareholders to recover if they’d bought at 20 euro they would have needed AIB to be worth around 10 trillion euro.
Sure that’s only 20 apples, Forrest. 