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 Post subject: Government to guarantee bank deposits/debt
PostPosted: Tue Sep 30, 2008 6:47 am 
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Real Estate Developer

Joined: Mar 15, 2007
Posts: 974
Location: Cork
Code:
BN   6:47   *IRISH BANK GUARANTEE BEGAN FROM MIDNIGHT SEPT. 29     
BN   6:47   *IRISH BANK GUARANTEE WILL COVER EXISTING, NEW FACILITIES
BN   6:46   *IRELAND WANTS TO `REMOVE UNCERTAINTY' AMONG COUNTERPARTIES
BN   6:46   *IRELAND SAYS GUARANTEE WILL OPERATE FOR 2 YRS       
BN   6:46   *IRISH FINANCE MINISTRY ISSUED E-MAILED STATEMENT TODAY
BN   6:46   *IRISH GOVERNMENT TO GUARANTEE BANKS' SENIOR DEBT, BONDS
BN   6:46   *IRISH GOVERNMENT TO GUARANTEE ALL BANK DEPOSITS       


Mod edit: thread title


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 6:52 am 
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Nationalised

Joined: Mar 4, 2007
Posts: 8008
Wow. Just like McWilliams called for. Except I think he wanted all bonds guaranteed.


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:01 am 
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Of Systemic Importance

Joined: Jun 9, 2008
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Am I getting anything for investing in the banks?

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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:01 am 
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Under CAB Investigation

Joined: Feb 24, 2008
Posts: 1639
What does this mean?


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:15 am 
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Planning Tribunal Attendee

Joined: Mar 19, 2008
Posts: 1305
Going off reports on the news reports on the radio this morning everything is covered (including bonds) in all the main banks


Quote:
The Government has decided to guarantee all deposits in Irish banks.

The banks that are covered are: Allied Irish Bank, Bank of Ireland, Anglo Irish Bank, Irish Life and Permanent, Irish Nationwide Building Society and the Educational Building Society and specific subsidiaries that may be approved by Government following consultation with the Central Bank and the Financial Regulator.


Quote:
The statement from the Department of Finance says all deposits, bonds and debt will be covered by the State.


http://www.rte.ie/news/2008/0930/economy.html


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:19 am 
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Too Big to Fail

Joined: Jan 29, 2008
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Location: In a greener field.
Take a bow David McWilliams, please God it hasn't come too late.

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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:19 am 
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Neo Landlord

Joined: Sep 17, 2008
Posts: 245
Watch for other CBs to follow, great move


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:22 am 
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Under CAB Investigation

Joined: Feb 24, 2008
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So what happens now if a bank fails? The government gets hit for a few hundred billion?


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:25 am 
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Of Systemic Importance
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This is a necessary step and should have been done weeks ago.

The entire banking system will fail if people have any doubts about the safety of their deposits.


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:37 am 
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Neo Landlord

Joined: Aug 27, 2008
Posts: 226
DSE3Br wrote:
So what happens now if a bank fails? The government gets hit for a few hundred billion?



In some cases several billions

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"The more the banks retrenched, the more bad loans mounted - which in turn led to more bad debts, which led to more loans being called in as the banks faced bankruptcy". David McWilliams March 12th 2006


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:39 am 
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Planning Tribunal Attendee

Joined: Mar 19, 2008
Posts: 1305
xman wrote:
This is a necessary step and should have been done weeks ago.

The entire banking system will fail if people have any doubts about the safety of their deposits.


As usual the government are reactive instead of proactive - I hope this isn't too late. I can sense some panic in the news reports which will surely project to the masses - I can see a lot of money being moved today.

Even the way the news reports on the radio this morning "announced" the new measures had a feeling of national crisis announcement about it.....


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:40 am 
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Too Big to Fail

Joined: Jun 2, 2007
Posts: 3800
Location: Top of the Bubble
Are the Irish banks going to soar this morning? Will this reduce all their funding concerns?


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:41 am 
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Under CAB Investigation

Joined: Feb 24, 2008
Posts: 1639
McAlpine's Fusileer wrote:
DSE3Br wrote:
So what happens now if a bank fails? The government gets hit for a few hundred billion?

In some cases several billions

McWilliams' article seemed to suggest E500Bn in total across the banks.


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:44 am 
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Planning Tribunal Attendee

Joined: Nov 9, 2006
Posts: 1427
They should have gone the full way and guaranteed the shares prices too.


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 Post subject: Re: Government Response this morning...
PostPosted: Tue Sep 30, 2008 7:45 am 
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Too Big to Fail

Joined: Jun 25, 2006
Posts: 3233
DSE3Br wrote:
What does this mean?


It means two things ....

1) that the government has promised State money to proetect every/any bank in the country. Potentially they have promised a blank cheque against your tax euros, State pension, others Social welfare ....

2) depending on just how far the government will go to 'defend' any bank they may have just painted a great big bullseye on every bank here for speculators, as the government has thrown it's weight into the ring behind the banks. Think the UK fighting to stay in the ERM. Expect the markets to test this.

Interesting times.

Blue Horseshoe

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