Government guarantees all deposits in Irish banks

For it to fail surely there would need to be a rebellion by members of the Government parties and that seems unlikely. Will be funny to see how the Greens square this one with their alleged principles!
 
ClubMan said:
For it to fail surely there would need to be a rebellion by members of the Government parties and that seems unlikely. Will be funny to see how the Greens square this one with their alleged principles!
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The Greens will ease their conscience with some deal that involves an additional carbon related tax. They’ll win, the government coffers will win and anyone who doesn’t exhale will also win.
 
Can anyone explain how the gov. can guarantee upwards of 400 billion when they just don't have it? How can this be having a positive affect on the bank share price, it's all meaningless?
 
mayway said:
Can anyone explain how the gov. can guarantee upwards of 400 billion when they just don't have it? How can this be having a positive affect on the bank share price, it's all meaningless?
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Good question. Irelands future is now tied to the future of the banks. If the Government, regulator and banks are correct about solvency and losses etc and the worldwide financial system heals itself, then we don't have a problem. If they are wrong, Ireland is about to enter a period that could make the 1980's look like a glorious time in our economic history
 


I’m going to have to file worrying about the banking crises in the same part of my brain that deals with the treat of nuclear war and the possibility of an asteroid impact. The dye has been cast and all we can do is wait and see how this plays out.
 
Does anyone know if this "no limits" covers sterling deposits in a UK Branch of Bank Of Ireland??
 
Does this move not encourage the banks to trade recklessly? The proposal includes the provision that the state guranatees loans taken out by Irish banks. This will massively increase the availability of credit to irish banks, regardless of risk. Is this a good thing?

As pointed out above, the Irish state cannot possibly afford to guarantee €400bn. It's turnover is only about €50bn and itj's heading ofr a €7bn loss this year. How would we fund this guarantee? I know - maybe we could borrow it.
 
seansean said:
Does anyone know if this "no limits" covers sterling deposits in a UK Branch of Bank Of Ireland??
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The full name given in the guarantee is "The Governor and Company of Bank of Ireland" If your account is with something else like "Bank of Ireland UK ltd" or something similar - then I doubt it is covered by this new guarantee.
Let us know if you find out different.
 
I think this dramatically increases the likelyhood of "bailout" measures for the property market in the upcoming budget.
The difficulty the Irish banks face at the moment is linked to the large amount of loand they have to developers for landbanks and unsold property. If the appartments don't sell, the bank doesn't get paid. As of today, Joe tax payer now picks up the tab. Effectively we have a 2 year ticking clock to clear up the "property overhang" we currently have.
 
Strasser said:
Is that just today's announced measure or are they also not covered by the 20k now 100k guarantee.
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Does anyone know the answer to Strassers Q ? Reason I ask is becasue I have modest savings in 1st Active doing the Regular Saver. Don't know if I should drive down and try and get the cash out or not. any replies pleasse ??
 

Looking at money and capital markets this morning, there is no lending state guarantee or not. The only lenders at the moment are the Central Banks. I am sill seeing Irish Bank bonds trading quite wide considering they are state guaranteed.

Another consequence of this is that spreads on Irish soverign debt have widened. Therefore funding this deficit that we are running is going to become harder and more expensive for the NTMA. Hopefully the charge to the banks for the guarantee will be enough to cover that. Be interesting to know what they are charging. I presume it has to be at market rates and if so, it is going to be very expensive for the banks based on Credit Default Swap levels.
 
GoMayoGo said:
Does anyone know the answer to Strassers Q ? Reason I ask is becasue I have modest savings in 1st Active doing the Regular Saver. Don't know if I should drive down and try and get the cash out or not. any replies pleasse ??
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First Active is still covered up to the 100k - don't panic..
 
There was a statement on Cork 96FM this morning that there is no €100,000 government guarantee to foreign banks in Ireland. I do not think this correct? any comments
 
roker said:
There was a statement on Cork 96FM this morning that there is no €100,000 government guarantee to foreign banks in Ireland. I do not think this correct? any comments
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The €100,000 scheme is still in place for foreign banks that are regulated by the Irish Financial Regulator
 
getting alot of contradictory answers whether First Active is covered. Ulster bank claims all Irish RBS branches are covered same as Irish and 100 pc cover! There are people here claiming otherwise and I am unsure. Have most savings with Irish branches of British banks. Does anyone have 100% accurate info?
Fanny
 
What rate are you getting with them? If it's not competitive then why not just move the money to a better rate/bank with a higher guarantee anyway?
 

Todays announcement of a guarantee does not cover any of the UK or European banks so Ulster Bank are incorrect (unless the Government have added them this morning without me seeing it). They are covered under the Irish Deposit Protection Scheme which means savings in a single institution of up to €100,000 are protected.
 
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