Ireland's government to buy banks for 500% of its value

Ireland's government to buy banks for 500% of its value

biznes.onet.pl

"Sunday Independent" - translation from polish web site
Irish Treasure Dept. will take over 75 % of shares in Anglo Irish Bank for 1 bn euro. For 1 share of the bank on stockmarket in w Dublin paid on Friday 0,35 euro, what makes bank woth total of 265 mln euro. Tha goverment is going to take over the bankmuch over its market price than."

(visit the link for the full news article)


Related News Links:
www.independent.co.uk
www.indepe ndent.ie
[url=http://www.independent.ie/business/irish/pumping-funds-into-failing-banks-is-throwing-good-money-after-bad-1578844.html]www.independent.ie[/url ]

[edit on 21-12-2008 by czacza]

[edit on 21-12-2008 by czacza]

couldn't find the link in english. but it will be officialy announced by tomorrow.
so what kind of economy is it? the tax payers will repay the bank bosses their loss on shares. it is insane.

read below:

"The collapse in bank share prices has devastated the net worth of the bosses of the major banks with most of them recording multimillion euro losses on their shares"

www.independent.ie...



biznes.onet.pl
(visit the link for the full news article)

sorry, for the really quick=bad translation I posted. I hope it is possible to understand it anyway.

and so it happened:


capital.trend.az...〈=en

sorry, same problem with a link to the article. hope trhis works:

capital.trend.az...

reply to post by czacza


It looks like the banks are using all that bailout money to buy more banks. This is what happens when you give out billions of dollars without foresight or regulation. All that money goes to paying execs, and the rest to purchasing more assets for the bank in case economic times get tougher. They WILL NOT willingly provide easier access to lines of credit just because the government wants them to, or because we have all apparently entered dire straights together. That goes against all corporate and business rationale. They aren't welfare institutions. I can't believe we expected them to be. They are primarily concerned about their own future well being, which if we believed otherwise would be totally foolish. This is happening the U.S. as well.

Source: www.msnbc.msn.com...
In what was the first instance of a bank using its investment from the government to make an acquisition, Pittsburgh-based PNC Financial Services Group Inc. said Friday it plans to acquire National City Corp. for $5.58 billion. PNC said it had received $7.7 billion in cash through selling stock to the government under the program.

This bailout was not about easing lending to the average consumer. It was about securing a financially secure future for the banks, as corporate entities. It was about Washington throwing out the line for their buddies, and Wall Street calling in a bevy of personal debts from their sycophantic political contemporaries.

[edit on 22-12-2008 by cognoscente]

reply to post by cognoscente


so it is in fact what the bailout money are used for. but the irish issue is even more twisted. the irish government is going to buy the 75 % of the shares of Anglo Irish Bank (from its bosses!!!!! - same guys who made it collapsed) not for the market price (around 200 mn euro) but for the amount of 1 bn (5 x more).

I would love to sell to irish government my bussiness too. I would be only a little sorry for all the taxpayers who would have to pay for it.