Why is Irish Nationwide being kept open?

[Brendan Burgess]

After the transfers to NAMA, Irish Nationwide will have €2billion in residential loans.

The taxpayer is putting in €2.6 billion to subsidise the losses recognized in the transfer to NAMA.

Surely the loan book should simply be transferred to the EBS and the depositors and bond holders paid off?

There should be no messing around with mergers and stuff like that.

It has no function at all.

Brendan

 

[canicemcavoy]

Fianna Fail seem to be believe in cargo cult banking.

 

[Duke of Marmalade]

Let's look at INBS balance sheet after all the dust has settled (my figures are round estimates from memory and may need some adjustment)

Deposits: 10Bn

Backed by:

3Bn Mortgages etc.
4Bn Nama Bonds
3Bn promisory notes etc.

The problem with giving back the Deposits is that someone has to find the funding for the mortgages, someone has to buy the NAMA bonds and the Government has to pay its promisory notes way in advance.

The whole balance sheet should be transferred to Third ForceCo along with its fairly valuable branch network.

 

[Towger]

The whole balance sheet should be transferred to Third ForceCo along with its fairly valuable branch network.

¿Convert Anglo into a high street bank?​