Irish Banks Approach Armageddon

Andrew64

The Irish Republic has one thing that Iceland didn't have - the Euro. If Irish banks get into serious trouble and the Irish government has to bail them out, but can't afford to do so, then it could ask the ECB to get them out of trouble. The big unknown, of course, is what the ECB would actually do if this happened.

cos69

Andrew64 wrote: »

The Irish Republic has one thing that Iceland didn't have - the Euro. If Irish banks get into serious trouble and the Irish government has to bail them out, but can't afford to do so, then it could ask the ECB to get them out of trouble. The big unknown, of course, is what the ECB would actually do if this happened.

This comes down to asking Germany to bail them out, the ECB would not do it without Germany providing much of the funding (Germany said no when Iceland wanted ECB loans). Given Ireland were the ones responsible for sinking the EU treaty when the Germans held the EU presidency, not sure they have many political favours they can call on.

cos69

Rachel_Jones wrote: »

Am I correct in thinking that Bank of Ireland funds Post Office savings accounts. Does this mean that savings with Post Office are now becoming vulnerable and that guarantees would be with Irish Government rather than UK? Would be most grateful for advice.

The compensation scheme is provided by Ireland, but I think you would have a strong case against the Post Office and hence UK Government if the compensation scheme failed. After all, you handed your savings over to a UK Government business the Post Office for safe keeping, if they are reckless with your money and place it with risky enterprises in other countries, then they have some responsibility for the outcome.

castle96

ANGLO IRISH - I got my dosh out of a 1 yr bond - 6.75% - by writing explaining an 'emergency' family situation (terms and conditions allow for withdrawal in an 'emergency', albeit with 2 mths loss of interest. When dosh came, THE|RE WAS NO DEDUCTION of the 2 mths ! Don't know whether it was a mistake on their part - can't see that they would make one

gunnaknow

AI share price up 8% this morning. The last two days of heavy falls were possibly just a reajustment to the news on wednesday that their profits were down for the first half of this year. Who knows though?

eeja

castle96 wrote: »

ANGLO IRISH - I got my dosh out of a 1 yr bond - 6.75% - by writing explaining an 'emergency' family situation (terms and conditions allow for withdrawal in an 'emergency', albeit with 2 mths loss of interest. When dosh came, THE|RE WAS NO DEDUCTION of the 2 mths ! Don't know whether it was a mistake on their part - can't see that they would make one

That is astonishing !
We know now why this bank's share price is at an all time low and it may go bust !

CAVEAT : Has the English Court not ruled that such penalties charged by banks if excessive are in contravention of the Unfair Contract Terms Act.?
If the interest being paid is way above the going rate when the fixed deposit is broken I believe they have no legal right to charge anything other than an admin charge. This would only apply in the case of the English and Welsh banks and not the Scottish and IOM banks where the Act almost certainly does not apply.
However there might be similar legislation in British Isles banks outside
England and Wales . Anyone know ? [Since this forum was set up by Martin
specifically for those under English and Welsh law this may be an invalid question in the context of this forum ]

eeja

eeja wrote: »

Share prices of the three major Irish banks are collapsing with Anglo Irish below 50 eurocents, Bank of Ireland around one euro and Allied Irish just approaching 2 euro.
Are our savings really safe ie how will the Irish government honour their guarantee and how long will it take to refund our savings ?

Bank of Ireland now below 1 euro !
Last Trade:0.97 €

Reaper

Andrew64 wrote: »

The Irish Republic has one thing that Iceland didn't have - the Euro. If Irish banks get into serious trouble and the Irish government has to bail them out, but can't afford to do so, then it could ask the ECB to get them out of trouble. The big unknown, of course, is what the ECB would actually do if this happened.

If the worst case senario were to happen and too many banks failed for the Irish governement to be able to afford to compensate savers I'm not sure how keen European countries would be to help. Ireland broke ranks by guaranteeing 100% of all funds of any size and I'm sure money drained out of their neighbours economies to Ireland as a result. I doubt they are ready to forgive and forget so soon.

I could forsee them helping to prevent Ireland going bankrupt but only on condition the money they lent was not used to pay compensation above EU levels.

All highly theoretical of course.

mickW_2

4.40pm Friday 5th December 2008 Anglo Irish Bank now 51 cents approx 42pence Oh dear looking bad for depositors in the UK

eeja wrote: »

Bank of Ireland now below 1 euro !
Last Trade:0.97 €

Hungerdunger

eeja wrote: »

CAVEAT : Has the English Court not ruled that such penalties charged by banks if excessive are in contravention of the Unfair Contract Terms Act.?
If the interest being paid is way above the going rate when the fixed deposit is broken I believe they have no legal right to charge anything other than an admin charge.

I have no idea what the "English Court" has ruled. A Google search showed up only an earlier thread of yours when you were banging on about the same topic.

You may well be right, but looking at it from the bank/building societies' point of view, they enter into a clear agreement with you. They agree to pay you an attractive fixed rate of interest, knowing that your funds will stay with them until a certain date, and that you won't be bothering them during the course of that term.

If, having entered freely into that agreement you then decide not to stick to it, I can't see anything wrong with them activating the penalty to which you originally agreed. I have several fixed rate accounts. I believe I will not need the funds until their maturity dates, but if I do, I have no problem being penalised in accordance with the Ts and Cs.