Ireland poised to launch bank rescue plan

gozomark

http://uk.reuters.com/article/hotStocksNews/idUKLJ27322520081119

sounds very similar to bank rescue plan in the UK

The Irish government is on the brink of launching a multi-billion euro rescue plan for the country's banks, including an injection of taxpayers' money, the Irish Independent newspaper reported on Wednesday.....

It is understood the government has now accepted that it will have to put public money into the banks," the Irish Independent said.
The paper said Finance Minister Brian Lenihan had a number of options to recapitalise banks, including buying ordinary shares, preference shares or co-investing with private money.

"Market sources believe the state would prefer to buy preference shares, as this would allow it to take an annual dividend, even as banks scrap a payout to ordinary shareholders over the lifetime of the guarantee scheme," the paper said.

soulsaver

Good spot. Yep : Thought Anglo Irish et al were getting near the breadline...

Greycrow

soulsaver wrote: »

Good spot. Yep : Thought Anglo Irish et al were getting near the beadline...

With Bank Of Ireland close behind.

eeja

gozomark wrote: »

http://uk.reuters.com/article/hotStocksNews/idUKLJ27322520081119

sounds very similar to bank rescue plan in the UK

The Irish government is on the brink of launching a multi-billion euro rescue plan for the country's banks, including an injection of taxpayers' money, the Irish Independent newspaper reported on Wednesday.....

It is understood the government has now accepted that it will have to put public money into the banks," the Irish Independent said.
The paper said Finance Minister Brian Lenihan had a number of options to recapitalise banks, including buying ordinary shares, preference shares or co-investing with private money.

"Market sources believe the state would prefer to buy preference shares, as this would allow it to take an annual dividend, even as banks scrap a payout to ordinary shareholders over the lifetime of the guarantee scheme," the paper said.

The Stock markets must be reading your postings as already this morning share prices of all Eire banks have risen. In the case of Anglo Irish up by an astounding 22'%. Keep up the good work ! PS your real name doesn't happen to be Osbourne does it !!

Veryunique_2

soulsaver wrote: »

Good spot. Yep : Thought Anglo Irish et al were getting near the beadline...

I fear the worst. I have been monitoring their shares for weeks.

I have a bond with them that doesn't mature for months. Knowing my luck I may be in for another Icesave.

gozomark

I fear the worst.

no reason to. This is good news as it will make the banks much safer

soulsaver

Veryunique wrote: »

I fear the worst. I have been monitoring their shares for weeks.

I have a bond with them that doesn't mature for months. Knowing my luck I may be in for another Icesave.

I know exactly how you feel - roll on **/02/09 but:
This should help you relax a bit... for now
http://www.rte.ie/business/2008/1119/marketupdate.html
If the bale happens we'll be home dry, DV. Has anyone tried an 'emergency break'?

eeja

Veryunique wrote: »

I fear the worst. I have been monitoring their shares for weeks.

I have a bond with them that doesn't mature for months. Knowing my luck I may be in for another Icesave.

You should seriously consider breaking this bond. Not for safety reasons but interest reasons. By mid Feb the BOE would have had two rate cuts and rates on savings will be far lower then...possibly only 1 percent.
Were you to break your bond and place the money at current rates you will probably be ahead of the game.
Yes there will be a penalty but if you stick with Anglo they might well waive any penalty allowing you to switch bonds.without penalty.
Why not speak with them ?

gozomark

Yes there will be a penalty but if you stick with Anglo they might well waive any penalty allowing you to switch bonds.without penalty.
Why not speak with them ?

AI (IOM), and I guess AI (UK) is the same - if you switch to a longer term account (ie 1 year to 2 years) they MAY not charge you a penalty, otherwise they charge you the interest still to be earnt till maturity eg 2 year account, 6% interest, 3 months to go - penalty is 6*3/12 = 1.5% - even then, its at their discretion whether allow you to break.

eeja

gozomark wrote: »

Yes there will be a penalty but if you stick with Anglo they might well waive any penalty allowing you to switch bonds.without penalty.
Why not speak with them ?

AI (IOM), and I guess AI (UK) is the same - if you switch to a longer term account (ie 1 year to 2 years) they MAY not charge you a penalty, otherwise they charge you the interest still to be earnt till maturity eg 2 year account, 6% interest, 3 months to go - penalty is 6*3/12 = 1.5% - even then, its at their discretion whether allow you to break.

A few weeks ago a moneysaver wrote on this forum that in his literature the Anglo penalty for breaking a 1 or two year bond was loss of a fixed two months interest, so in this case he would be one month penalty interest amount better off if his savings are in the UK rather than on the IOM !

Best news of all for him would be if Anglo allowed him just to switch bonds for a longer one without penalty and there are good reasons why they should do this :
1. they will be paying him a lower interest rate for the next 3 months than they would otherwise have to on his old existing bond which matures 2/09
2. Ensures the guy sticks with Anglo for a further year or two.
Agreed ?