Is it not as simple as:

Assets:
- Loans: €38bn
- Nama Bonds €14bn

Total:€52bn

Liabilities:
- Depsoits €54bn
- Senior + Subs: €14bn

Total: €68bn

Does the promissory notes (or any of the €22.8bn so far) come into this or has it already been used to pay off older debts?

Anglo liability breakdown provided on the other Anglo thread

23bn is “customer deposits” which is both corporate and retail. the 31bn is interbank and central bank, 26.3bn of which i believe is central bank (incl ECB). Most analysts reckon of the 23bn in customer depos, they have lost 4-5bn in recent weeks, hence the decisions this week on the g’tee and the split.

The overal figure is apparently 54bn and €23bn of this is retail.

That leaves us with €31bn. Aynsley did say last week he feared the bank could lose €12bn in corporate deposits if the guarantee wasn’t extended but I can’t really get a good breakdown in their last results.

“10.14 and still no sign of the FAQ on the Department’s website”

two years into the crisis and still no sign of a re capitalised banking system!

Although there was no consensus on how to re capitalise the banks, as far as I remember, there was a consensus, from the get go, that it was of paramount importance that it be done effectively and promptly.

If the delay in recapitalising had allowed us to push losses up the capital structure I could see arguments in favour of this inordinate delay could hold weight.

However, at this stage, it looks like like we can’t see the wood for the trees

There is need for a more interactive, and at times a more confrontational culture, in the inter-agency discussions that explore risks during fiscal and supervisory policy design.

I might be wrong here, but I am under the impression that the Anglo decision again was decided on in an inner circle shielded from any confrontational culture.

My ears are still ringing from the ‘There is no other way!’ statements when there were clearly alternatives brought to the Ministers attention.

The report continues to identify massive corporate governance failures, and speaks of very serious breaches.

Personally, observing the Irish political stage since the better Part of 12 years now, I would think these failures and breaches are not restricted to corporate entities, but include government departments and semi state bodies equally.

The rigorous position of no default at all costs will prove to be to high a price to be able to maintain social stability and security. The first signs of social breakdown are already on the horizon, suicide rates are going through the roof, criminal statistics equally, this winter will leave people with not enough money to heat their homes, while they are forced to pay 5% PSO Levy on their electricity bill, from which 2.5% is used to support an utterly idiotic Peat-> Electricity production.

Is this what the government advisors consider collateral damage? How much collateral damage will they accept to continue to project a smoke screen that has long been lifted by the markets?

They continue to sacrifice the future of generations for the sake of Investors (by definition risk takers, obviously not anymore!) and a projected smoke screen to fool international markets.

The rescue rings they continue to throw out to the bondholders turn out to be the millstones around the Irish peoples neck, trying to keep their head up in the troubled waters of global economy, but ultimately the millstones are drowning them now.

The voices of the people drowning in the Titanic disaster echoed in the dreams of those who survived for the rest of their lives. I guess, David Drumm and Patrick Neary and a longs list of other actors in this chapter are sleeping rather well these days.

Why wouldn’t they? ….

- don’t they HAVE to say they’ll pay the bondholders, cos if they don’t it’ll trigger the guarantee?

against: Black is white talk proves politics and not sense is still too high on the priority list
eg. from the Q&A

“Q 2. Does this proposal represent a Wind up of the bank?

The bank is not being wound up.

YES IT IS

Q 3. Why is the Government adopting this new policy

The decision today does not represent a change in policy.

SEE ABOVE

Q. 4 Why did the Government not adapt this policy earlier for example in May when the plan was submitted by the Bank to the Commission.

It was not clear in May what the optimum approach for Anglo was.

It’s been clear since DAY 1.

sigh.

I figured when i first read the statement that the state basically thought ‘we can take the deposit book which is costing 3.2% (or less) and use that for funding instead of trying to issue bonds in a market that will want north of 5%’

http://www.mortgagebrokers.ie/blog/index.php/2010/09/08/anglo-new-bad-bank-bad-bad-bank-plan/

How can you have a bank that is all liability and no asset? That is a direct transfer from taxpayer to depositor so there HAS To be an asset at some point to defer and cause the maturity transformation conventional banks have or there is no margin, it is a loss only option. That couldn’t be the case, therefore, the most likely asset in ‘deposit bank’ is govt. bonds

I keep laughing over how the Brian’s say out of one side of their mouth the Anglo costs will be 25bn and then say they won’t know the final cost for a few weeks. This does not compute.

Love the ‘Anglo Reloaded’ quip earlier. Tres droll. I see it more as ‘Billy Liar’.

The FB allows the loans to be worked out but separates the depositors from the bondholders?

A guess.

To provide assets for those?

The safest would be
NAMA bonds 5,877
Unpledged promissory 8,200
Leaving a shortfall of 11,018?
Made up of a loan? Secured or unsecured?

I am presuming that since there are going to be two banks, both will have to be solvent so their balance sheets will have to, eh, balance.

Indeed. So we’re left with only the discount on the unguaranteed subs.

So after two years we’ve got Nama and now a new bank-specific ‘resolution’ scheme (with total cost for this bank still TBD) and with a proper resolution for the other banks (INBS, AIB etc) still pending. Should be a leading contender in the “Most Complex Solution” category. A true slow-motion trainwreck.