A.I.B. share price continuing decline



Cassandra Syndrome

Well-known member
Joined
Aug 23, 2009
Messages
16,885
The clock is ticking to December 31st.

About 60 working days left.
 

Glucose

Well-known member
Joined
Mar 31, 2010
Messages
850
It will be interesting to see how this plays out for the remainder of the day.
 

SeanieFitz

Well-known member
Joined
Sep 13, 2010
Messages
12,015
204k shares in AIB and 2.3m shares in BOI traded so far today. who is buying these shares and why?
 

DCon

Well-known member
Joined
May 5, 2009
Messages
5,889

Glucose

Well-known member
Joined
Mar 31, 2010
Messages
850
Why is it declining today? And when will AIB be nationalised?
It is likely that A.I.B. will fail to meet capital requirements(7.4Billion).

I suspect it needs more to repair its balance sheet.

That is why.
 

grafter1

Well-known member
Joined
Apr 1, 2010
Messages
829
The NPRF is a hedge fund run by a bunch of clowns. Their new mandate is to produce returns of 6-7% per annum now to match our cost of funds.

The NPRF will suffer massive losses over the next few years as it increases risk in search of yield.
 

DCon

Well-known member
Joined
May 5, 2009
Messages
5,889
The NPRF is a hedge fund run by a bunch of clowns. Their new mandate is to produce returns of 6-7% per annum now to match our cost of funds.

The NPRF will suffer massive losses over the next few years as it increases risk in search of yield.
By buying our Government debt, they would do ok..

Could this be why BOI is becoming a primary dealer?

BANK of Ireland (BoI) is considering opening a bond-trading desk that would act as a primary dealer for government bond auctions.

The move would end Davy's status as the only Irish member of the 16-strong group of primary dealers for government debt.

It is understood that the bond desk would sit in BoI's treasury division, though sources stressed that no decision has been taken to open the desk.

BoI could make a decision on the bond desk within "months or years", one source said, adding that establishing the function wasn't a priority.

Setting up a trading desk would give BoI a fresh income stream against a backdrop of forced retrenchment at the hands of the European Commission.
Bank of Ireland considers opening bond-trading desk - Irish, Business - Independent.ie
 

grafter1

Well-known member
Joined
Apr 1, 2010
Messages
829
By buying our Government debt, they would do ok..

Could this be why BOI is becoming a primary dealer?



Bank of Ireland considers opening bond-trading desk - Irish, Business - Independent.ie
The NPRF will do okay if they invest on our own bonds if they were to receive 100c on the euro when the bonds mature. Foolish assumption in my view. No chance the Germans will put up with all this nonesense for the next decade.

BOI moving into this area is all well and good but when Ireland taps the EU/IMF fund the gravy train of Irish bond issues will be at an end.

Bad news for Davy on both counts
 

Cassandra Syndrome

Well-known member
Joined
Aug 23, 2009
Messages
16,885
Bank of Ireland taking a hammering as well. Down 6% to 59c.
 

DCon

Well-known member
Joined
May 5, 2009
Messages
5,889
Bank of Ireland taking a hammering as well. Down 6% to 59c.
It's a gift that keeps on giving!

22 February 2010 - The National Pensions Reserve Fund (NPRF) today received
€250.4 million of Bank of Ireland ordinary shares, in lieu of cash, as payment of the
first dividend on its preference share investment.
On 30 March 2009 the Minister for Finance directed the NPRF Commission to invest
€3.5 billion in preference shares issued by Bank of Ireland for the purposes of
recapitalisation. The preference shares bear an annual non-cumulative fixed dividend
of 8% payable in cash or ordinary shares in lieu.
The European Commission has requested that discretionary coupon payments on Tier
1 and Upper Tier 2 capital instruments in Bank of Ireland not be paid while it
considers the bank’s restructuring plan. As a consequence, Bank of Ireland has today
paid the first dividend on the preference share investment in the form of ordinary
shares. It issued and allotted to the Fund 184,394,378 of its ordinary shares
representing the amount of the 2010 preference share dividend divided by the average
share price in the 30 trading days prior to and including 19 February 2010. The Fund
now holds 15.7% of the ordinary stock of Bank of Ireland in issue
http://www.nprf.ie/Publications/2010/NPRF250mBOIShares.pdf
 

Glucose

Well-known member
Joined
Mar 31, 2010
Messages
850
Bank of Ireland taking a hammering as well. Down 6% to 59c.
It's becoming like a race to see who can be nationalised first



........No me.....No me first.....No me.....No me......No me first.
 

Glucose

Well-known member
Joined
Mar 31, 2010
Messages
850
A.I.B. ordinary shares are now worth less that 50 Cents.

Nationalisation is becoming a foregone conclusion.

Irish Stock Exchange
 

maxthedog

Well-known member
Joined
Apr 13, 2009
Messages
1,078
A.I.B. ordinary shares are now worth less that 50 Cents.

Nationalisation is becoming a foregone conclusion.

Irish Stock Exchange
But how can this happen, they are a bank who sold their prize asset in an emerging market, so as to continue trading in a corrupt banana republic.

What could have spooked the markets?
 

Glucose

Well-known member
Joined
Mar 31, 2010
Messages
850
But how can this happen, they are a bank who sold their prize asset in an emerging market, so as to continue trading in a corrupt banana republic.

What could have spooked the markets?
;) I wonder was it also the possibility that it will fall hopelessly short of Capital requirements.;)
 

Hewson

Well-known member
Joined
Apr 29, 2009
Messages
8,269
But how can this happen, they are a bank who sold their prize asset in an emerging market, so as to continue trading in a corrupt banana republic.

What could have spooked the markets?
The other AIB: Anglo Irish. Too much uncertainty over the eventual cost, too much uncertainty over whether the economy can recover when so much money will be taken from circulation by Government cutbacks and a fear that we won't be able to meet our obligations to repay debt or raise further cash at sustainable interest rates (currently 6% +).

All fear, worry and uncertainty. All the things that make 'the markets' nervous.
 

Glucose

Well-known member
Joined
Mar 31, 2010
Messages
850
Several Radio stations are reporting that the government has nationalised A.I.B.

Horrific moment for our Economy but sadly was so inevitable.
 


New Threads

Popular Threads

Most Replies

Top