Here's a good one: Ireland's 2 biggest lenders - Bank of Ireland (IRE) and Allied Irish, both...


Here's a good one: Ireland's 2 biggest lenders - Bank of Ireland (IRE) and Allied Irish, both majority-owned (in AIB's case 99% owned) by the state - reject a request by the government to lower variable interest rates after the ECB cut its benchmark 25 basis points. "Pathetic," says a member of the finance ministry.
Comments (6)
  • wyostocks
    , contributor
    Comments (9102) | Send Message
     
    When one wrestles with a skunk, regardless of who wins, one comes out stinking.
    10 Nov 2011, 10:25 AM Reply Like
  • untrusting investor
    , contributor
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    Guess they have to make up those losses somewhere.
    10 Nov 2011, 10:30 AM Reply Like
  • deercreekvols
    , contributor
    Comments (8629) | Send Message
     
    Maybe the majority owners, the state, should start to apply a little pressure to the banks.
    Who is running the banks? I guess the answer to that one is clear.
    Who should be running the banks? The same fools who got them thrown into government ownership or the state?
    10 Nov 2011, 10:35 AM Reply Like
  • oneillalan
    , contributor
    Comments (2) | Send Message
     
    BoI are no longer majority owned by the State. Wilbur Ross and another team of investors bought a significant chunk of the bank from the State's National Pension Reserve Fund back in July; diluting the State ownership down to 15.2% or thereabouts.

     

    Blanket guarantee from the State though is still in place.

     

    Also, Allied Irish will point out that they didn't pass on the last two ECB Main Rate increases to borrowers on variable rate mortgages, so are within their rights to now not pass on the rate decrease.
    10 Nov 2011, 12:26 PM Reply Like
  • wyostocks
    , contributor
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    However, bet you a cyberspace cup of coffee that the banks cave in to the pressure.
    10 Nov 2011, 12:30 PM Reply Like
  • oneillalan
    , contributor
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    AIB already have, after a meeting of their board they've announced they will be passing on the rate cut. They are circa 99% in State ownership, and have 'public interest' Directors appointed to their board so it isn't a huge surprise.

     

    So far still no move from Bank of Ireland, who as I've stated have only around 15.2% state ownership, and Ulster Bank, who have zero state ownership.
    11 Nov 2011, 05:35 AM Reply Like
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