# Could we focus on creating  one really good  bank and letting the rest wind down?



## Brendan Burgess (24 Nov 2010)

There is talk of merging AIB and Bank of Ireland. I see no point in this at all. There might be some point in using a very large and safe credit union to recapitalize and rescue a smaller one. But I can't see the point of merging two seriously wounded animals. 

A merger would require massive resources and would take years to implement. 
They need to focus on fixing themselves. 

We need a banking system to handle payments.
We need a strong, normal bank, to take deposits and make loans. 

It looks as if Bank of Ireland is in the best shape. Should we not simply focus on getting that out of the zombie region? Overcapitalize it. Sell any large dodgy loans or loanbooks to AIB.  Get the National Pension Reserve Fund to buy out the life arm. (They can sell it again when the market is better)

Consider doing something similar with permanent tsb or the EBS, although it's not as urgent. 

Accept that the rest are beyond recovery for the timebeing at least. Keep the guarantee on deposits but don't add in any extra capital for the time being at least.


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## mercman (24 Nov 2010)

Another well thought of thread. There should be only one single Bank that issues loans and the balance should simply manage deposits. We need to start back to basics and the only way this can be done is to take ridiculous schemes out of the equation. And if the Banks do not like this -- tough -- they got themselves into this mess, and got a lifeline. What more can be done for them.


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## Complainer (24 Nov 2010)

Why don't we just cut off AIB & BOI and close them down, and use UK or international banks instead, such as NIB.


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## county (24 Nov 2010)

To enable that to happen we firstly need to fully nationalise all institutions under the guarantee,  not 99.999% of each of them but 100% to come under state control.  All members of boards who prescided over that entity in the boom years to be sacked.  To be replaced by competent individuals and I dont want to hear that the expertise is not available we have tons of it in this country. Anglo, INS, EBS no longer have a funtion in this society so wind down transfer whatever can be to NAMA and sell off the remainder of the loan books at whatever we get for them.  I believe we need two clearing banks in the country,  whether that be BOI and AIB or BOI and AIB/ILP I dont know because I aint one of these "experts" but I do know that we need more than one bank for comepetition purposes.


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## NHG (24 Nov 2010)

+1 County


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## shanegl (24 Nov 2010)

Complainer said:


> Why don't we just cut off AIB & BOI and close them down, and use UK or international banks instead, such as NIB.



I agree. Sell their respective branch networks (if still they own any of them). No need to mess around creating another "good" bank.


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## Chris (24 Nov 2010)

shanegl said:


> I agree. Sell their respective branch networks (if still they own any of them). No need to mess around creating another "good" bank.



I also agree. I do not want to see any politician starting to enter the banking industry any further than they have already. The acts of politicians, not just here, have exacerbated the financial crisis. I would have less than 0% faith in any bunch of politicians making it their business to reorganise or set up banks. 
Appoint liquidators to any bank that can no longer operate without state intervention, and sell anything that has value to the highest bidder. Then reduce the burden and cost involved in setting up new banks, thus attracting completely new banking businesses with very simple deposit and loan books. The more individual banks there are the lower the overall risk is of one of them going bust, i.e. reduce the value of risk without having to try and reduce the probability of risk.


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## mmclo (25 Nov 2010)

Life Arm...BIAM has been sold, to State Street


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