As I have said before “I agree with many aspects of the Labour Party approach to the present crisis but on the banking crisis I believe that FG has a policy ,”Recovery through Reform” http://www.richardbruton.finegael.org/policies/ , which has the potential to deal with the banking and long term economic crisis more effectively.”
The FG proposal to set up a new “clean” state bank to deal with the banking crisis is indeed radical and should be compatible with Labour Party thinking on the banking crisis.
There will be debate about the details of the FG plan but I believe that the overall approach is much superior to the NAMA bailout plan for speculators.
“We are constantly being told by the Government and its supporters that there is no alternative to NAMA. This is absolutely untrue. What is true, is that this Government has refused to consider any alternative. Instead, it is trying to soften up the public for a sweetheart deal for the banks. On Newstalk recently, the Taoiseach said: “The government has to write whatever cheques are necessary in the interest of maintaining financial stability”. I cannot think of a more irresponsible comment by a Taoiseach in recent times”.
The quote from Enda’s speech above at long last identifies the flawed Government approach to the crisis -TINA.
As for writing “whatever cheques are necessary” coupled with the DoF statement that nationalisation will be avoided “at any cost” – it is difficult to judge whether these statements are part of a grand strategy to appease the sovereign debt markets, bank shareholders and bondholders or are demonstrations of utter incompetence. Showing your negotiating position involving many billions of taxpayers money must be a new clever DoF ploy to outfox everyone.
I’m amazed that the main difference between the goverment plan and the FG doesn’t get more coverage on this site.
Many seem to get caught up on whether we setup a good bank or a bad bank when in reality this is only a minor issue.
The main difference between the two plans is that the FG plan imposes losses on bondholders while the NAMA plan currently doesn’t.
Has anyone done an analysis on how much capital this would create for the banks?
We no longer need the banks that we have. That means job losses in tens of thousands. The banks are rightly refusing to lend into a deflationary spiral.
They may be liquidated by their creditors in the ordianry course of events, but to kill them quickly shows decisiveness.
This will not happen. So there is a policy of employing banks to keep the dole queues shorter. Ready for the upturn promised by the IMF et al. Ready!
The policy of the government (and of the economists it buys) is to increase competitiveness, keep taxes low and keep the banks afloat at all costs! This is not the Swedish strategy, it is the Japanese strategy. Another corrupt island. But do not despair, after 19 years their economy has turned another corner, perhaps the one before growth. After all, Greenspan and Bernanke have said that the recession is over.
Ha ha ha ha ha hah!
Soon, a lovely little word for which the mexicans can only use the far mkore urgent word, manana, there will be no capital for a good bank in Ireland. It will all have gone, Japanese style, into government debt. Taxes will rise and slowly businesses will die.
But the banks will still be there! The IFSC will glisten in the sun! Just like the statues on Easter Island, long after the population has moved on. Hundreds of branches, occupying historic old buildings, next to greenfield and half finished development sites, all poised for the growth that will spur new building.
All waiting, waiting. The banks must be saved!
@ Pat Donnelly (“After all, Greenspan and Bernanke have said that the recession is over. “).
It seems everyone is saying “the recession is over” this week. Germany, France, Japan – I think I also just saw something on IT’s breaking news that even the UK has said it! So it must be over then?
Ha ha ha ha ha hah!
Crikey! I just read that even the Russians think they are recovering!
Anything that ‘shoots’ in Russia, green or otherwise, should be studiously avoided.
We seem to have been getting a load of positive ‘recovery’ news in the past few days. Is it by any chance orchestrated?
Who and where exactly are the ‘bondholders’ and ‘investors’ which this Govt.is so terrified of?
There is real clarity and ‘clear blue water’ between FG and all others which has only now been given something like the recognition deserved.
There is an incredible laziness and utter lack of professionalism in Irish Media which is regularly seen – comment on NAMA being the most recent example.
1. Why does Mr Kenny think that the location of the properties is so relevant ? NAMA is – is it not ? – about dealing with the so-called “Irish” banks. It’s not about “fixing” the Irish property market – or is it ?
(As I understand it, the “Irish banks” are in fact more than 80% foreign-owned – can anyone provide confirmation, or refutation ?)
2. Does the alternative Taoiseach really think that NAMA could lose €90 billion ? Does anyone ?
9 replies on “Enda Kenny on Bank Restructuring”
At long last FG are getting into gear.
As I have said before “I agree with many aspects of the Labour Party approach to the present crisis but on the banking crisis I believe that FG has a policy ,”Recovery through Reform” http://www.richardbruton.finegael.org/policies/ , which has the potential to deal with the banking and long term economic crisis more effectively.”
The FG proposal to set up a new “clean” state bank to deal with the banking crisis is indeed radical and should be compatible with Labour Party thinking on the banking crisis.
There will be debate about the details of the FG plan but I believe that the overall approach is much superior to the NAMA bailout plan for speculators.
“We are constantly being told by the Government and its supporters that there is no alternative to NAMA. This is absolutely untrue. What is true, is that this Government has refused to consider any alternative. Instead, it is trying to soften up the public for a sweetheart deal for the banks. On Newstalk recently, the Taoiseach said: “The government has to write whatever cheques are necessary in the interest of maintaining financial stability”. I cannot think of a more irresponsible comment by a Taoiseach in recent times”.
The quote from Enda’s speech above at long last identifies the flawed Government approach to the crisis -TINA.
As for writing “whatever cheques are necessary” coupled with the DoF statement that nationalisation will be avoided “at any cost” – it is difficult to judge whether these statements are part of a grand strategy to appease the sovereign debt markets, bank shareholders and bondholders or are demonstrations of utter incompetence. Showing your negotiating position involving many billions of taxpayers money must be a new clever DoF ploy to outfox everyone.
I’m amazed that the main difference between the goverment plan and the FG doesn’t get more coverage on this site.
Many seem to get caught up on whether we setup a good bank or a bad bank when in reality this is only a minor issue.
The main difference between the two plans is that the FG plan imposes losses on bondholders while the NAMA plan currently doesn’t.
Has anyone done an analysis on how much capital this would create for the banks?
We no longer need the banks that we have. That means job losses in tens of thousands. The banks are rightly refusing to lend into a deflationary spiral.
They may be liquidated by their creditors in the ordianry course of events, but to kill them quickly shows decisiveness.
This will not happen. So there is a policy of employing banks to keep the dole queues shorter. Ready for the upturn promised by the IMF et al. Ready!
The policy of the government (and of the economists it buys) is to increase competitiveness, keep taxes low and keep the banks afloat at all costs! This is not the Swedish strategy, it is the Japanese strategy. Another corrupt island. But do not despair, after 19 years their economy has turned another corner, perhaps the one before growth. After all, Greenspan and Bernanke have said that the recession is over.
Ha ha ha ha ha hah!
Soon, a lovely little word for which the mexicans can only use the far mkore urgent word, manana, there will be no capital for a good bank in Ireland. It will all have gone, Japanese style, into government debt. Taxes will rise and slowly businesses will die.
But the banks will still be there! The IFSC will glisten in the sun! Just like the statues on Easter Island, long after the population has moved on. Hundreds of branches, occupying historic old buildings, next to greenfield and half finished development sites, all poised for the growth that will spur new building.
All waiting, waiting. The banks must be saved!
@ Pat Donnelly (“After all, Greenspan and Bernanke have said that the recession is over. “).
It seems everyone is saying “the recession is over” this week. Germany, France, Japan – I think I also just saw something on IT’s breaking news that even the UK has said it! So it must be over then?
Ha ha ha ha ha hah!
Crikey! I just read that even the Russians think they are recovering!
Anything that ‘shoots’ in Russia, green or otherwise, should be studiously avoided.
We seem to have been getting a load of positive ‘recovery’ news in the past few days. Is it by any chance orchestrated?
Who and where exactly are the ‘bondholders’ and ‘investors’ which this Govt.is so terrified of?
There is real clarity and ‘clear blue water’ between FG and all others which has only now been given something like the recognition deserved.
There is an incredible laziness and utter lack of professionalism in Irish Media which is regularly seen – comment on NAMA being the most recent example.
1. Why does Mr Kenny think that the location of the properties is so relevant ? NAMA is – is it not ? – about dealing with the so-called “Irish” banks. It’s not about “fixing” the Irish property market – or is it ?
(As I understand it, the “Irish banks” are in fact more than 80% foreign-owned – can anyone provide confirmation, or refutation ?)
2. Does the alternative Taoiseach really think that NAMA could lose €90 billion ? Does anyone ?