A positive effect of liquidating Anglo for the remaining banks is one less, native competitor in the Irish market, particularly over the medium term when things will eventually sort themselves out. How about charging the remaining banks for this privilege? Specifically, I'm thinking we borrow the 28bn over 280 years at 100m a year. We then slap a 100m a year charge on the 5 (?) banks in the bail-out program and we the taxpayer take the hit on the interest element (even if this interest was agreed at 10%, it would only represent 10m a year to the taxpayer). Surely, each bank could afford 20m a year over the medium/longterm as a cost of business. At least this approach would mean that the banks are bailing themselves out to a certain degree? If the banks we unable to make the payments (e.g.) giving them a break for the next 3 years to get their house in order, then the hit on the taxpayer is limited to 110m annually.
Charging the Irish Banks for Anglo liquidation
- Thread starter Firefly
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Brendan Burgess
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If we have to borrow €28 billion to replace the promissory notes, the interest at, say, 3% would be around €840 million per year.
The government, on its own initiative, chose to guarantee the depositors in Anglo. I would be very happy if the government sought to recover the money from those depositors whom it bailed out. If the other banks were depositors, by all means, impose a charge on them. But also impose it on the ordinary citizens and credit unions and pension funds who had deposits and bonds in Anglo.
Brendan
The government, on its own initiative, chose to guarantee the depositors in Anglo. I would be very happy if the government sought to recover the money from those depositors whom it bailed out. If the other banks were depositors, by all means, impose a charge on them. But also impose it on the ordinary citizens and credit unions and pension funds who had deposits and bonds in Anglo.
Brendan
