Allied Irish Banks Share Discussion Threads

[cat100] 30/9/2010 08:05

going down if you ask me . Is advfn slow takes me an age to load a page

[cat100] 30/9/2010 08:00

AIB and Irish Nationwide will also require more money from State.

The development will push Ireland's deficit to 32% for this year, according to the Minister for Finance.

The Government has accelerated the process of transferring loans to NAMA to get final figures to repair Ireland banking system.

AIB will need a further €3bn on top of existing State funds being converted into shares.

That is likely to push the Government's shareholding to a majority stake potentially over 90%, but the bank will retain a stock market listing.

Irish Nationwide will need a further €2.7bn, bringing its total bailout to €5.4bn.



At least they will still be listed

[crosswire] 30/9/2010 06:14

Ireland braces for Anglo Irish Bank rescue bill

By Andrew Bushe (AFP) – 6 hours ago

DUBLIN - Ireland will reveal Thursday the total cost of the state bailout of Anglo Irish Bank, with analysts suggesting that the enormous bill could be more than the country's annual tax revenues.

Media reports put the rescue costs at a potentially crippling 30 billion euros (41 billion dollars) in all.

That would also equal around one fifth of Ireland's total annual economic output at a time when the eurozone member nation is struggling to cut a huge public deficit sparked by the global financial crisis.

"At 30 billion euros, the cost of the bail-out is very similar to the annual Irish tax take," said Jane Foley, senior foreign-exchange strategist at Rabobank.

"It follows that there is no quick fix to the appalling state of Irish government finances," Foley said.

"To date, the Irish government have been fairly successful at fire-fighting but as more details about the size of the Anglo problem have become known, it has become less easy to see how the government can afford this bailout without some holders of Anglo (debt) paper being subject to some kind of default."

Irish Prime Minister Brian Cowen said Wednesday that the bailout costs were being finalised by the country's regulatory authorities.

Finance Minister Brian Lenihan pledged to stand behind Anglo Irish and warned that a failure of the institution would "bring down" Ireland.

"Any Anglo failure would bring down the sovereign," the finance minister was quoted as saying in the Financial Times on Thursday.

"No country could contemplate the failure of such an institution."

Foley at Rabobank added: "Given the extent of current market worries, the central bank may be able to regain some confidence by showing that it can tackle this problem head-on."

Despite the Anglo Irish overhang, EU Economic Affairs Commissioner Olli Rehn insisted on Wednesday that Ireland would not need emergency funding from the European Union or the International Monetary Fund.

The Irish Times, without citing its source, reported earlier that the bailout cost would be "about 28 billion to 29 billion euros ... rising well above 30 billion euros under a worst case or 'stress' scenario."

The newspaper said the announcement would be "an estimate in the lower range, rising to the potential higher cost should losses rise on further market declines."

"The report in the Irish Times highlighting that the overall cost of winding down Anglo Irish may rise well above 30 billion euros is hampering sentiment," noted City Index analyst Joshua Raymond.

In London, the Financial Times said that about 5.0 billion euros would be injected into Anglo Irish, which would take Dublin's total bailout spending on the bank close to 30 billion euros.

A spokeswoman for the Irish finance ministry declined to comment on the reports and the extent of the aid.

However, she added that the government has committed up to 24.5 billion euros of public money, of which 22.9 billion euros has already been injected.

Highlighting the extent of Ireland's weakness, the yields -- the rate of return for investors -- on Irish debt hit record highs on Wednesday on concerns over the parlous state of its public finances.

Meanwhile, Irish politicians returning to work after the summer break were greeted by protesting union members angered by huge cuts to state spending.

A 41-year-old man was arrested after a cement mixer truck with "Toxic Bank Anglo" written on it crashed into the front gates of the parliament building.

Ratings agency Standard & Poor's on Tuesday warned that the total cost of the Anglo Irish rescue could exceed 35 billion euros as Cowen attempted to reassure financial markets by saying the government would present a "manageable" plan to resolve the issue.

Ireland is struggling to ride out the financial storm and the Anglo Irish plight has only added to the uncertainty.

Ireland was the first eurozone member nation to plunge into recession in 2008, slammed by the global financial crisis, a domestic property market meltdown and soaring unemployment.

It returned to growth in the first quarter but then shrank by a huge 1.2 percent in the second quarter, stoking fears that with its public finances under immense strain the country could fall back into recession.

The government has strongly rejected speculation that it could have difficulty raising funds and might have to seek help from a huge EU rescue fund set up after the Greek debt crisis earlier this year.

Ireland, alongside other weaker eurozone nations Italy, Portugal and Spain, is struggling to maintain investor confidence in its ability to control its huge public debt and deficit.

[crockanure8] 29/9/2010 23:46

irish gov taking 70% of AIB for 3 bn euro.. announcement in the morning..buy buy

[ch1ck] 29/9/2010 18:11

Linney

Looks like I might have bought the right share after all but maybe its too early to tell

[bongo bwana] 28/9/2010 15:37

OK - Ill scrub that - not trying to be funny peculiar

[linney3] 28/9/2010 15:33

That would be the Rock Cat perished on -the Northern one

[cat100] 28/9/2010 15:04

U.S. consumer confidence at lowest level since February

[keelingr] 28/9/2010 14:48

Thanks - on the basis that the Irish Gov. will probably do anything they can to avoid full-scale nationalisation for political reasons, I think there could be some value here at the right price.

[cat100] 28/9/2010 14:33

Nationalization is a possibility . Hard to say but they need to raise quite a bit and they are running out of ammo. I'm not trading this for anything lost a lot on NR. So I'm no expert as you can see lol

[keelingr] 28/9/2010 12:09

cat - can I ask what you see the final outcome being here - full nationalisation? some kind of RBS 80:20ish job? do you see zero equity value? thanks

[bongo bwana] 28/9/2010 11:28

Nothing wrong with Ur memory, LOL.

And ur calls here and in Bank aint bad either.

[cat100] 28/9/2010 11:24

We may owe one to each other there

[bongo bwana] 28/9/2010 11:20

Well Cat owes me a pint of creamy porter since Smart Telecom.

[hassani2] 28/9/2010 10:57

where irish bank gona end up

[bongo bwana] 28/9/2010 09:59

Id be inclined to agree Lin3

[ch1ck] 28/9/2010 09:54

May Be we will have to see

[linney3] 28/9/2010 09:33

You may have chosen the wrong Irish bank to invest in - BKIR is a safer option

[ch1ck] 28/9/2010 09:13

Just started picking up some shares at the 0.5 Euro mark will see if we dip briefly to sub .4 if I will pick up a lot more.

The story is not over by a long shot

[hassani2] 25/9/2010 02:53

The end with albk is to add as much shares u can from ur saving,time will tell