I was gonna post this last night. I’m wary though that anything said here on the pin can influence the market. Therefore I don’t write anything RE: the markets from my work terminal any more.
If people think ISEQ is out of the woods and into the clear and that March 17th was just ‘a blip’, well think again.
The Irish media are on a different wavelength to the British media who have been very doom-and-gloom (particularly regarding house prices, unemployment and the erosion of the middle classes over the last fortnight). All this Cowen/Eurovision/Lisbon stuff is drowning out the real news: the Irish economy is screwed.
I dumped all my ISEQ stocks (actually all my equity holdings) months ago on advice of a banker mate of mine (it’s great to have good friends some times!). I’ve said it before and I’ll say it again: ISEQ will drop to 4,500 if the fear isn’t managed and proper leadership fails to take control of the situation. This does not mean feeding people’s minds with Sindo soma and property porn. That old trick doesn’t work any more.
I wouldn’t have money in ILP under these circumstances. ILP will be paying the 5% penalty rate for that money. Their loan book must be well underwater at that cost of money.
where did they get the emergency funds numbers? I thought these were dirty little secrets. It doesn’t seem prudent that ptsb should be allowed to continue lending to new customers when they’re tapping the ecb to cover their existing book. I think i saw an article recently saying they need to roll over 1bn later this year.
The Tribune had much the same story at the weekend Here
and for the exact same reason you just gave Cellopoint I refrained from posting it here .
Sooner or later the Pin will be collectively blamed for something by a psychotic VI caught out lying (again) but this story was broken by the Phoenix and by the Tribune. They are entirely responsible for its effects , if any.
I have nothing to add to it , no information and no musings and no caveats and no corrections .
Do you mean you wouldn’t hold the stock, or do you mean you’d take your savings out if there ?
I’m getting 5.5% on a 21-day savings account with PTSB.
Is posting a link to a story such a big deal, it’s not like posting an unsubstantiated rumour.
Nothing nasty will happen within 21 days AH, so chill. They have an awful lot of 'variable rate 'customers to gouge if they feel they need cash .
The advice remains and applies to ALL banks in the current riskier worldwide financial crisis, that you should not put all your life savings in one bank.
Utilise lender of last resort provisions to borrow money directly from the ECB for 5%, then lend it out to Canny McSavvy at 5.1% on a Tracker Mortgage (with your bloated 55% Cost/Income ratio) so he can buy the most overvalued residential property in the world with little or no equity of his own?
What a marvellous business model.
This is exactly the kind of financial wizardry required to keep the floundering Irish property market afloat.
God bless the ILP shareholders & management for doing their patriotic duty by sacrificing their own profitability at the altar of high property prices.
They’ve just increased the interest rate on the 21 day notice account to 5.75%
How they can be making any money is beyond me.
isn’t that 21 day notice account a regular saver? If so there are many institutions offering 7%+ on similar products. I think First Active even allows access (not sure if there’s a notice period tho)
First Active does indeed pay 7.15% AER on regular saver accounts with instant access.
Irish Nationwide pays 7.35% but only allows 2 with drawals per year
Anglo pay 7% but the account has a 2 year term and no withdrawals are allowed
I think a few others pay 7%+ but couldn’t be bothered checking!
Anglo do allow withdrawals at any time. Interest is only calculated once a year though.
Well the ECB bailout might not be around for much longer because the ECB is reviewing what collateral it will take. Check this out.
Irish banks abusing a free lunch
Thats not what it says here
Available by post, telephone or branch
You save for a fixed amount of time and earn a competitive return
Interest rate is variable, with a minimum rate guarantee of 4.5% for the full term of your Regular Saver Account
Interest is calculated daily and added to your account on the first anniversary and every year thereafter until the end of the fixed term
Minimum monthly contribution is €100. Maximum monthly contribution is €1,000
Monthly saving contributions are made electronically from another financial institution (e.g. standing order, direct online payment)
**Early withdrawals will result in your account being closed and the balance transferred to our Easy Access Account **
Statement issued annually on the anniversary date or by using our online service
So what are we looking at here?
Bank hits the wall, or is in a position to be taken over?
Would someone want to take over the mortgage book from ILP. I have no absolute proof of this, but I suspect due to talking to FTB’s who got their mortgage from “Da Permo” they were almost akin to a sub prime deal