So the Irish government has nationalized Allied Irish Bank.
Shocking.
I grew up in Ireland at a time when Allied Irish Bank was as much a permanent feature of the landscape as government buildings.
The fact that it went broke it is an extraordinary development.
In every town and village there was a branch of AIB.
With relatively few banks to choose from it soon became the bank of choice for millions.
It expanded to Britain, America and Poland, it had a fancy branch on Park Avenue in New York
The idea of it failing was preposterous.
Your bank manager was a big man in town. If he deigned to speak to you you were deeply appreciative.
Now he's about as popular as a sexually transmitted disease
Lenihan minced no words that the bank would fail without the latest bailout when he made it official.
"We wouldn't have had an AIB on Jan. 1 if this injection wasn't made,"he told Irish radio.
The bank was on the verge of failure he said
Lenihan told state broadcaster RTE Radio that a "gradual erosion" of deposits had reached crisis point.
Allied Irish Banks had already got EUR3.5 billion in state aid in 2009.
How did it come to this?
How bad did the management have to be to condemn a bank which had about every second household in Ireland banking with it?
How reckless did they have to be with the bank's money to blow the billions that has now left it broke?
This bank gives drunken sailors a bad name.
Here is what Lenihan said "The markets are not willing to invest in Irish banks. They don't have confidence in them and that's the state the banks brought themselves to. We have to have a banking system in this country and it has to be brought into public ownership."
The stock is now at about 50 cents down $30 dollars a few short years ago. It is expensive at the price. Your golden retriever is worth more than this bank
Opposition spokesman Joan Burton aid it well , "Today's transfer of EUR3.7 billion from the National Pensions Reserve Fund to AIB represents the last act of a disastrous year for the government's banking policy."
Burton said the Fianna Fail-led coalition's policies have failed: "The cost to Irish taxpayers has escalated enormously and bank bailouts now leave a massive legacy of additional debt on the national exchequer which will have to be serviced at huge cost
4 Comments
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Switch to the desktop site to post a comment.casualMBA | Dec 28, 2010, 10:03 AM EST
Reference Mr. Lenihan's depositors observations,"...the erosion" of shareholders value and tax considerations having reached a point, I did the sober deed, and sold my "equity" position. Best of the New Year to you!
Monsoonman | Dec 23, 2010, 02:07 PM EST
Anybody that gets out and about to different parts of the world might notice the ubiquitous nature of the chinese govt. tentacles. Stand at the edge of the Suez canal and watch the cargo ships passing through, most are COSCO ships. To the dumbed down public school graduates who can actually spell, it doesn't stand for costco shopping centers.
Monsoonman | Dec 23, 2010, 01:16 PM EST
"This bank gives drunken sailors a bad name."...You feel like you were drugged and shanghaied. Came to dense packed in the bowels of a slave freighter bound for the peoples republic of china for a lifetime of indentured servitude. Because china wants something in return for their "investment".
seamusmoore | Dec 23, 2010, 01:10 PM EST
Interesting quote from Lenihan that "the erosion of deposits had reached a cris point". Since the Irish govt has guaranteed all deposits since 2008, is this an indication that govt's guarantee means little to depositors? It doesn't give one much confidence in the Irish govt's chances of not defaulting on their obligations.