Irish Banks braced for mergers that will strengthen sector

gozomark

Irish Banks braced for mergers that will strengthen sector

http://www.irishtimes.com/newspaper/finance/2008/1122/1227293432097.html

MEETINGS BETWEEN Minister for Finance Brian Lenihan and the heads of the guaranteed banks and building societies this week - and the circling of the banks by various private investors - have sparked a frenzy of debate about possible mergers in the banking sector

There is no doubt that the Government views consolidation as part of a three-pronged approach to the safeguarding of the banking system from future shocks.
Step one involved the guarantee on September 30th, stopping the flood of deposits out of the Irish banks and building societies.
Step two will involve the recapitalisation of the banks. This looks likely to come from private investors, as the Government has repeatedly said State investment in the banks was "a last resort".
Step three involves mergers

soulsaver

Anglo Irish have rebuffed the pressure from Lenihan to merge and have said they feel confident in raising the required capitol in the private sector....
BoI appear to be going for a combination of private funds and Gov injection but have pee'd off institutional shareholders by lack of consultation.
In general the news looks positive IMHO for depositors at least in the near term considering where their share valuations curently are ...

Gwhiz

Agreed it looks positive!