Budget

[soc]

I take your point though Mc. I remember seeing one of those money advice programs (Eddie Hobbs or something), where they delivered a statistic that 1 in 2 (yes that's 50%) of credit card holders in Ireland do not clear their balance at month end, (my banking contact confirms this to be a good estimate). Scarey statistic when you think about it.

Actually, it's closer to 70%. Worse than that - 50% have carry > 2k each month.

Unfortunately this is just a symptom of a greater problem - credit was easy so attitudes changed. A whole Irish generation have become hooked on credit.

[soc]

On the mortgage front I agree, bad, bad form on the banks part. They knew just like any of us that this boom wasn't going to last forever,

Yes, they did and yes they continued to indulge in excessive lending while our financial regulator sat on his ar$e twidling his thumbs. But don't be fooled - the government, the financial regulator and most developers all knew the extent of the problem well before it became headline news. And those who didn't were just ignoring the obvious!

yet now they are laughing happy as they repossess homes and make more money on people's losses.

Actually only a very small % of banking staff are grinning right now and only because the government are weak and won't force reform. The vast majority of those working in the banks are now wondering how long they will hold onto their jobs. McWilliams is predicting a merger between AIB and BOI - I wouldn't bet against it - BOI are hovering around 1.65 and have hit 1.503 this week so are in a very weak position. The BOI market capitalization is around 1,580m euro while Anglo's market cap is around 1,500m euro - we may be redefining the "big 2" banks. Also, many people subscribe to the theory that it was actually BOI who were at risk of going under the night before the banking guarantee was announced. If there is a merger you can expect close on 10k redundancies there alone.

I could go on and on but suffice to say, the media frenzy may have died down and moved focus to rediculous budget issues like medical card and university fees but the past few weeks are just the start of what's to come! Keep your eye on the global markets and the impact this is going to have on Irish financials - once the banks and related financial institutions start to creak the knock on will be horrendous over the next few months.

[mcgon1979]

Unfortunately this is just a symptom of a greater problem - credit was easy so attitudes changed. A whole Irish generation have become hooked on credit.

back in my day you had to save actual physical money to by stuff... well, maybe not my day, but recently enough.

[Marie]

A driver is stuck in a major traffic jam just outside Dublin on the M50 motorway.


Nothing is moving.


Suddenly a Garda knocks on the window. The driver rolls down his window and asks, "What's going on?"


"Pensioners" have kidnapped Brian Cowen, Brian Lenaghan & Mary Harney, and a bunch of Bankers.

They're asking for a €30 million ransom, otherwise they're going to douse them with petrol and set them on fire.

We're going from car to car taking up a collection."


The driver asks, "How much is everyone giving, on average?"


"About a gallon."

[mcgon1979]

brilliant!

[mcgon1979]

You weren't worried about the rumours that the company who owns Halifax were talking about pulling out of Ireland then...

just some further info on halifax Kev.. I actually think its very good that Halifax Ireland are opting out of the govt. guarantee scheme. They are covered by the UK scheme (with serious £££ backing) and I think the rish govt are in huge huge trouble when its realised they don't have the 15billion to bail out the irish banks...

By Joe Brennan

Wednesday October 29 2008

Halifax-Bank of Scotland (Ireland) has decided to give the Government's €500bn bank guarantee scheme a wide berth for fear onerous supervision of lenders under the State's protection could prevent it from providing competitive banking products.

The lender, a unit of Edinburgh-based HBOS, which is merging with Lloyds TSB, has opted for the sole coverage of the UK's banking scheme. The British government is injecting €11.5bn of fresh capital into HBOS as part of a three-pronged plan for its banking system, which also includes a loan guarantee and liquidity fund.

"Signing up to the two schemes is tantamount to insuring your house twice -- it doesn't make sense," said Mark Duffy, chief executive of Halifax-BoSI. He added that joining the Irish scheme would restrict the lender's ability to compete.

The Government is looking for all lenders to be covered by the Irish scheme, to submit detailed business plans by the end of the year. It is expected that the Financial Regulator will exercise strict supervision over banking products, lending growth and rates and other offerings by covered lenders over the two-year lifespan of the guarantee.

Halifax-BoSI's move yesterday, following a board meeting in Dublin, has heightened speculation that Ulster Bank and First Active, subsidiaries of Royal Bank of Scotland, may also avoid the Irish scheme. Ulster Bank said, however, that it is still working on its application.

Ireland's six indigenous lenders, including AIB and Bank of Ireland, signed up to the Government guarantee last Friday.

The five foreign-owned institutions invited to join have been given until this week to submit their so-called 'guarantee acceptance deeds'.

- Joe Brennan