Interesting comments with regards to McInerney’s banking covenants. Earnings related covenants were always likely to be ditched first, paving the way for slashing prices.
In the face of a broad based economic slowdown, I wonder will the Financial institutions be quite so generous with smaller companies in other, less highly leveraged sectors of the economy.
Barry O’ Connor, CEO, in the Sunday Times today going on about 15,000 housing starts this year and next and an ensuing housing shortage as he says that it is estimated that there is a natural demand for 45,000 new homes a year based on household formations.
Past performance is no guarantee of future demand…
This is a very important story and well highlighted by the Trib.
Indeed. Its a rollover by any other name !
If they are foced to lower prices, here is a current list of properties they have for sale. YOo might p-p-p-pick yourself up a penquin, I mean a bargain!
A bit surprising that for Dublin they say they have no developments
in short, no they won’t. John Paul Getty once said, “Owe the bank $100 and it’s your problem. Owe it $100 million and it’s the bank’s problem.”
smaller guys will be dealt with in the more ‘traditional’ (by traditional think al pacino in carlitos way) manner
Jebus! If I see this pearl of wisdom one more time on this forum
So what are the banks waiting for? Things to improve?
This is like the Nigerian bank scam. The banks are in for so much money they haven’t got the good business sense to just pull the plug and pick the bones.
Every rollover is putting the builders deeper in hock to the banks. The banks could be earning on this money they have lent out to the builders. Instead they sit and pray that a myracle will happen.
I want to see the bank CEOs qualifications? How could they be so stupid?
One word, Bailout !
Not stupid. Its just they don’t care, its not their money. They don’t want to rock the boat and as long as they can blame it all on external factors then they are in the clear.
The longer the banks maintain the pretense that all the loans are performing while being rolled over the longer it defers the Day of Reckoning.
In the mean time they hope that the ECB will slash rates, and that faith will be restored which would defray some of the losses in the Developers books.
Also the longer individuals in the bank can keep getting paid big salaries and attempting to hedge themselves personally out of it.
there’s a lot of hubris in the Banks
they are unwilling to recognise how stupid they were at the height of the boom
Bye bye denial. This is big.
So big that we have to go to bloomberg to get it, where’s the Irish media?