Nationalisation

B

Berba

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Hey lads

What do ye guys think of the current banking situation? Is nationalisation a real possibility now for the two main banks or will the recapitalisation prove to be enough, just wondering for investment purposes

thanks
 
As I understand it nationalisation is still a big possibility. This is because the banks just take the recapitalisation money to shore up their balance sheet and as a contingency against future turbulence rather than lend it out and get the wheels of the economy moving. If they were nationalised the government could obviously exert their influence in this respect.
 
AIB are up next followed by BOI for nationalisation I reckon.
 
I purchased 4,500 Anglo Shares over past 2 years!

Do you think there's any chance of getting compensation? if so when, possibly when Anglo is sold by the Government & refloated on the Stock Market.
 
Devine21 said:
I purchased 4,500 Anglo Shares over past 2 years!

Do you think there's any chance of getting compensation? if so when, possibly when Anglo is sold by the Government & refloated on the Stock Market.
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Sorry but your shares ceased to exist once Anglo was nationalised. Best chance of getting compensation is to sue the existing and former members of the board.
 
askalot said:
Sorry but your shares ceased to exist once Anglo was nationalised. Best chance of getting compensation is to sue the existing and former members of the board.
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Not true. Compensation may still be paid. Doubt it will be much but might be something. Certainly don't rip up your share cert.
 
On the day Anglo was nationalised Brian Cowen made some vague references to investigating the possibility of compensating shareholders for their stake, but I haven't heard anything since.
 
Just to fill in the gaps on a few of the previous points.

Firstly, when the Irish government nationalised Anglo Irish Bank, any claim on ownership that you held has disappeared for good. Like Sunny has stated though, the government may be obliged to compensate you, should any value actually be redeemed from the bank. However, as Northern Rock has shown, the chances are that you're going to end up with nothing.

This has not stopped people from speculating on what sort of compensation that the government may actually end up paying to shareholders. People are still trading shares that have been delisted from the New York Stock Exchange. That means that you can actually put a value to the shares you have.

http://www.google.com/finance?q=OTC:AGIBY

According to that, Anglo shares are trading at $0.04 each. So if you have 4,500, that means that the market values your holding at €144.
 
Omega said:
Can Anglo shares now be used/written off for capital loss purposes?
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I'm not sure the value can be entirely written off. I would say that at very least, you can write down the value of them by whatever you paid, minus 3.3 cent.
 
Re Nationalisation
Can my loss in bank shares be written off against capital gain in property sale

chasie
 
Raskolnikov said:
Yes.
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Is this still true even if the bank shares (in this case, Anglo) have not formally
been recinded - i.e. I presume that shareholders' names are still on the share register. So, from a Revenue perspective, can a write-off (to 3 cents or whatever) be used to offset a capital gain in 2009? Thanks.....
 
Re Nationalisation of banks in general

If the govt takes a majority shareholding in the remaining private banks can it then take out the 'troubled' assets, put these assets under the control of a specialised asset management company, and then re-privatise the banks? Is that possible? If not, why not?

This would have the following benefits:
1, it would free up the banks and allow them to lend again without having to worry so much about their current bad assets (as they won't have them any more). This would help the supply of credit to the economy.
2, it would mean that the existing shareholders don't lose everything (this is important because a lot of Irish people own the banks through either direct shareholdings or through their pension funds and full privatisation would pretty much render them worthless).
3, the govt could remove any existing executives and appoint new executives.
4, would improve Ireland's reputation abroad.
5, would cost less than constant recapitalisation.

Thoughts?
 
Berba,

Unless you've money you can afford to lose i wouldn't invest.

It's true that if they're not nationalised there's huge upside potential medium to long term but if the banks are nationalised you could lose all your investment.

Although, it will be interesting to see the value the govt puts on Anglo shares. It is possible that group charged with putting a value on the shares could value them at a higher value on the day that they ceased trading - as I understand it they are valuing the market value of the company as to give it a fair value (I don't think many long-term investors would've been willing to sell at closing value given the choice).

It is most likely that they will value them somewhere between 0 and the value the day it was privatised.
 
Would this happen suddenly? I mean, I think most people knew Anglo was going down? Would there be much warning?
 
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