Wednesday, 5 November 2008

The Irish Banks

Every morning on my way into work I have to listen to some financial 'expert' on the radio deliver the mornings financial news. Without fail they chirp when the markets rise and wail when they fall, we are also treated to various wishful musings on 'house price recovery' (as if this would be a good thing), 'market stabilisation' and currency exchange rates.

How does one become a financial expert? You don't seem to have to know anything about the market at all bar "Up good, Down bad". Every single one of them mocked David McWilliams when he warned of the impending disaster, they smirk when the word 'social' and 'responsible' are used in any way relating to business and genuinely seem to the think the worst is "almost" over.

Mr McWilliams reckons we are about to enter phase two of a three part collapse but you'd never know it from by listening to the 'experts'.

Anyway, looks like the Bank Of Ireland is fucked! I bank with these idiots.
[it] doesn't have anything like the wriggle room. It has almost none. It can sell its life business, which is decent enough. There's also a bit of hedge fund stuff in the States. The BIAM asset management division is a dog, having lost billions in mandates. Nobody will touch it with an asbestos-covered barge pole. There's also a medium-sized British mortgage business. But you'd need Hulk-sized stones to even think of buying that.

This means that unless it can get Banco Santander to buy it lock, stock and barrel, Bank of Ireland is probably going to be owned by you and me.