Banks going into Meltdown

[rov1200]

Dublin has announced that it will have to shell out £43.4bn to rescue its banks. This seems like a similar scenario to what happened in Britain when the taxpayer had to pay out to keep them afloat.

Why should the taxpayer lose out? Couldn't these banks be given a loan to keep them going and repayable with a certain amount of interest?

[Count-A-Strong]

And where would this loan come from?

[jake-the-peg]

If the loan is seen as being unrepayable by investors and the risks of bad debts seen as being unknown those investors will still vote with their feet and pull out causing the collapse of the bank.

If the bank goes down all savers may lose their money, mortgages will be foreclosed

If one bank is allowed to fail investors will see that others will be allowed to fail too and they'll go down like dominoes

It's all about confidence.

Problem is the size of the bill compared to Ireland's GDP.

We spent a lot of money bailing out the banks but we have a huge GDP compared to Ireland

This is close to two years tax receipts for Ireland

[rov1200]

With hindsight we have seen British banks pull themselves out of depression into making huge profits at the taxpayers expense. We have witnessed this by the huge bonuses they are now paying out. So the public criticize the banks for making these huge profits once again at our expense.

You can take it their losses were a temporary blip and needed just a stimulus to get them going again. I assume the IMF loans are not without interest added.

Banks are just like businesses with shareholders who wish to make profits. The banks should abide by the same criteria as a business that gets itself in temporary trouble.

At present the thinking is we are all being conned by these financial institutions. They shouldn't be allowed to get away with it!

[jake-the-peg]

//You can take it their losses were a temporary blip and needed just a stimulus to get them going again. I assume the IMF loans are not without interest added. //

er no you can't

A lot of the uncertain bad assets were split off into "bad banks".

If you can divest yourself of all the bad debts you have your crisis suddenly looks like a blip

[youngmafbog]

Its nothing like the UK position. This is 30% of output, ours was around 7%.

[rov1200]

Its interesting how the US has handled the banking crisis. AIG has just repaid £14bn for loans it received from the government. Hot of the press today:

///Disgraced insurance giant AIG in £14bn paybackBy Dominic Rushe In New York
Last updated at 12:16 AM on 1st October 2010 United States authorities set out their plan to recoup some of the $180bn (£114.5bn) that taxpayers poured into disgraced insurance giant AIG.

AIG last night said the payback plan would consist of several parts and it may take years for the US government to recoup it's losses.///

When do we get ours back? Forgetting of course the banks that were nationalised.

[stokemaveric]

they are in the euro...enough said i think...

[Whickerman]

it's feckall to do with us being in the Euro stoke, but believe what you want.

Google Sean Fitzpatrick and see the types of scams the top bankers pulled. Believe it or not, they took billions from one bank, moved it to say, Anglo Irish Bank, then when the accounts were done for the year to show a massive balance sheet they simply moved it back again. This type of swindling went on under the nose of the 'regulator' and it's left the country in the toilet.
Anglo is now pretty much owned by the government, as is Allied Irish, Irish Nationwide etc. Frankly they should have let Anglo fall. It would have ruined thousands of fat-cats, but he country would still be strong financially.
Time for scum-bag Cowen to get the hell out.

[BillyBB]

It's the loss of monetary control that gets you Whicker rather than the euro itself, though you cannot have one without the other.

[BillyBB]

Count - many banks survived without tax payer bailouts, notably Barclays. They got a cash boost from the middle east.

Jake,
Banks ARE businesses with shareholders and they can do a debt for equity swap just like any other business.

As long as the banks pay sufficient insurance to cover payouts to depositors then all will be well, sadly the state has a monopoly on this insurance and as such make a mess of it.