# Banking Crisis deja vu - we have been here before



## Gulliver (3 Oct 2008)

Its not widely known but we have had banking crises in Ireland before - and government rescues:-
The banking firm of Mead and Curtis in Dublin failed in 1731, and a relief Act was passed. in Burton’s bank crashed in 1733, leaving debts of £79,128.5.4. 
There was a major banking crisis in 1754-5. Dillon & Farrell Bank, Willcox & Dawson Bank and Lennox & French Bank all failed due to frauds
In July 1758, Clements, Malone & Gore Bank.failed 
In Oct 1759 the firms of R. & T. Dawson, and Mitchell & Macarill suspended payment, leading to widespread panic, and the remaining banks were government guaranteed
In 1779, there was a further crisis, leading to failures, of the firms of Mitchell, and Underwood.
In Mar 1797 a run developed on banks Dublin but they 
Other bank failures:-
1806 – Talbot & Co (Malahide) – all creditors were paid in full
1807 – Cotter & Kellet (Cork) – losses £210,000
1808 – Colclough & Co (New Ross) – note issue of £200,000 which became worthless
1810 – Beresfords Bank (Dublin) – all creditors paid in full
1814 – ffrench & Co (Tuam & Dublin) – major loss of note issue
In 1820 all four banks in Cork closed from 25th May. Within days, the 4 Limerick banks closed. Closures followed in Clonmel, Carrick-on-Suir, Kilkenny, New Ross, and most spectacularly, Waterford. Alexanders Bank closed in Dublin. 
In 1856 the Tipperary Bank failed
In 1885, the Munster Bank failed. The Munster & Leinster Bank which was then formed was eventually the lead bank in the formation of AIB.
_Mainly extracted by Gulliver from Halls Hitory of Bank of Ireland_


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## roker (5 Oct 2008)

I rember having trouble getting a bridging loan in 1980 because the banks had problems, the mortgage was only allowed at 2.5 x my earnings.
As a matter of interest is cost me IR£22,000 to build my 4 bedroom bungalow including £3,000 for the site.


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## Brendan Burgess (5 Oct 2008)

We had two failures of financial institutions in the 70's/early 80's where people lost their deposits.

The PMPA Savings scheme and something like "Irish Credit Bank".

These were all due to solvency issues i.e. the liabilities of these banks exceeded their assets.  Other banks were not threatened.

This time it is primarily a liquidity issue. There might be a solvency issue for some of the smaller banks as well, but this is very difficult to establish.

Brendan


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## Gulliver (6 Oct 2008)

There was also Merchant Banking Ltd., part of the Gallagher Group, and prominently mentioned in various tribunals.  C. J. Haughey was a notable borrower there.  A liquidator was appointed in May 1982.  Depositors lost their funds.


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## Gulliver (6 Oct 2008)

There is also a useful list of banks which no longer exist (i.e. banks which have been swallowed up into other banks) but may be the subject of legal claims e.g. if you found documents relating to your grannies life savings in how old armchair.  This list shows which bank now owns the assets of the no longer existing bank.  Find it on  

Interesting to see lots of old savings banks there e.g. Monaghan Savings Bank


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