Are the Irish Banks in trouble yet again? AIB shares lose 6.5pc value after its tenth straight day of losses!

Catahualpa

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Oh dear AIB shares lose 6.5pc value after its tenth straight day of losses oh dear oh dear

- I have that terrible Deja Vu feeling all over again....

I mean surely not chaps

This was all supposed to be sorted - could never happen again etc etc - once in a 100 years an all that...

AIB shares lose 6.5pc value after its tenth straight day of losses

Shares in Ireland's largest bank, AIB, fell 6.5pc on Wednesday for its 10th successive day of losses, far outpacing a decline on the wider ISEQ market which lost 1.6pc.

According to calculations by Bloomberg, the stock has dropped by 16pc in the past 5 days and by 37pc in the past 30 days as it skidded to €2.32 per share on Wednesday.

Goodbody analyst Eamonn Hughes, who retains buy rating on the stock, moved to cut his price target for the bank, which is 71pc owned by the taxpayer, to €3.50 per share from a prior target of €4.50.


Can some of our resident bean counters spill a few and give the low down on whats up this time?

I thought the Fundamentals were now Sound? 🧐
 


Lumpy Talbot

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No
The markets are usually quieter at this time of the year for obvious reasons but there is a volatility in the muggy late summer air at the moment.

Irish banks would give many international investors the jitters fairly quickly in a volatile market.

They are weird shares anyway in valuation because they certainly only ever became a defensive share when the Government showered it with love and affection at serious economic cost under the bank guarantee.
 

Catahualpa

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Our Banks really are up the Khazi!:poop:

Irish bond yields slump and Irish bank shares fall as Rehn fuels talk of ECB action in September
By Eamon Quinn

Thursday, August 15, 2019 - 06:25 PM

Sky-high expectations the ECB will sanction a large stimulus next month to help Germany and other parts of the eurozone to avoid recession sent the market costs of Irish government borrowing to a new low, as Irish bank shares were hit again...

The slide in eurozone bond yields comes in a week when investor fears about world recession risks have risen...

And Irish bank shares were hit again -- because rate cuts and stimulus by the central bank next month will make it even tougher for all eurozone banks to generate profits growth in the future.

Already under pressure from the effects that a crash-out Brexit could do to the Irish and British economies, Bank of Ireland fell 1% to bring its losses to 54% in the past year; AIB shares were little changed after plunging earlier in the week but have nonetheless lost 50% of their value in the past year; and Permanent TSB fell by a further 5%, posting a 54% drop in the year.

https://www.irishexaminer.com/breakingnews/business/irish-bond-yields-slump-and-irish-bank-shares-fall-as-rehn-fuels-talk-of-ecb-action-in-september-944220.html

When we had the last Banking Crises this was Front Page News

- now Love Island gets more coverage....:love:

Like WTF?:teeth:
 

Lumpy Talbot

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No
Ever get the feeling the V-boys* are out there sharpening their destructive pencils?

*Those who make money out of volatility and are therefore highly likely to promote the necessary levels of volatility they need.
 

Catahualpa

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Ever get the feeling the V-boys* are out there sharpening their destructive pencils?

*Those who make money out of volatility and are therefore highly likely to promote the necessary levels of volatility they need.
Yes - crash the Market and then buy back when the price is low.

High street banks are past their sell buy date re turning in serious profit margins.

They are there to provide a social function more than anything else.

They will be gone within 20 years IMO

With the continuing spread of the cashless society then investors will put their wealth on other horses.

However that is down the road - in the meantime we are staring a New Banking Crises in the Face.

People were stunned and caught off guard the last time when the s.hit hit the fan

- are we to B caught with our pants down again?💩
 

cozzy121

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Your OP is Flawed.
Why would Irish Banks be in "trouble"?
The Irish Government will Bankrupt the state (again) to bail them out.
 

McTell

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No
AIB is a part of the public service.

What other listed business has its CEO summoned in to see the Minster when he takes over?

 

Lumpy Talbot

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No
It is unusual. We caught a glimpse of the general banker view of regulators and politicos on the tapes with David Drumm.

Not that they are in any way inaccurate, of course, but it sticks in the throat coming from classless little parasites in bank boardrooms.
 

Patslatt1

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NEGATIVE INTEREST
The negative interest rates on many government bonds across the eurozone cut bank interest on the government bonds banks must invest in and have a knock on effect on bank interest on all loans,including mortgages and business loans.
In addition,negative yield curves where long term interest rates are temporarily lower than short term interest rates are reducing the interest rate spreads of banks-the difference between what the banks earns from investing money and the interest they pay on bank deposits.
For Irish banks, another problem may be the snailpace resolution of defaulted mortgage loans as populist politicians vilify specialist credit companies that buy those loans from banks, calling them vulture funds. In nature, the vulture performs a useful service by devouring corpses that would spread disease if left untouched.
 

Lumpy Talbot

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No
NEGATIVE INTEREST
The negative interest rates on many government bonds across the eurozone cut bank interest on the government bonds banks must invest in and have a knock on effect on bank interest on all loans,including mortgages and business loans.
In addition,negative yield curves where long term interest rates are temporarily lower than short term interest rates are reducing the interest rate spreads of banks-the difference between what the banks earns from investing money and the interest they pay on bank deposits.
For Irish banks, another problem may be the snailpace resolution of defaulted mortgage loans as populist politicians vilify specialist credit companies that buy those loans from banks, calling them vulture funds. In nature, the vulture performs a useful service by devouring corpses that would spread disease if left untouched.
That description would better fit the private equity industry, I think. Vulture funds are not 'specialist credit companies'. They are the same sort of people who operate exactly the same model as the sovereign debt vultures. Buy debt for as few pennies on the ultimate pound as possible and wrench the debtor in any way possible to exceed the pennies on the pound they paid.

They are the modern version of tipstaffs, or bailiffs. Except they operate on a form of commission. There is nothing benevolent or beneficial about them.

They wouldn't even exist if the finance sector was properly regulated.
 

Volatire

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That description would better fit the private equity industry, I think. Vulture funds are not 'specialist credit companies'. They are the same sort of people who operate exactly the same model as the sovereign debt vultures. Buy debt for as few pennies on the ultimate pound as possible and wrench the debtor in any way possible to exceed the pennies on the pound they paid.

They are the modern version of tipstaffs, or bailiffs. Except they operate on a form of commission. There is nothing benevolent or beneficial about them.

They wouldn't even exist if the finance sector was properly regulated.
Ignorant horseshít.
 

Lumpy Talbot

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No
That's what I like about politics.ie. You are always sure of a cogent debate.
 

Catahualpa

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Will the Irish Banks have another Crash tomorrow I wonder?

It is truly staggering how the MSM are giving this Story so little coverage!

And its only six weeks till September 30th!
 

raetsel

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Will the Irish Banks have another Crash tomorrow I wonder?

It is truly staggering how the MSM are giving this Story so little coverage!

And its only six weeks till September 30th!
You're being hysterical.
 

Volatire

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The billions lost to the state on bank share holdings is entirely due to our idiotic Brexit policy.

Incompetent anglophobic fückwittery on a staggering scale.
 

Lumpy Talbot

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No
The billions lost to the state on bank share holdings is entirely due to our idiotic Brexit policy.

Incompetent anglophobic fückwittery on a staggering scale.
That's just horseshyte, based on the meanest understanding of a political timeline.

Our Brexit policy is based on legally agreed and signed understandings between sovereign governments.

The fact that we see no reason to revisit that agreement is not our issue. It is an issue for the people who signed it and now want to tear it up.

I know you seem incapable of understanding that this political crisis has been caused in the UK rather than Ireland but your 'analysis' is just wishful nonsense.
 

Volatire

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The country has once again fallen into the hands of dangerous cretins.

With the Irish taxpayer still holding 71% of AIB stock, this administration had played a lunatic game of anglophobic chicken with Britain. A game that they were always primed to lose.

Rather than lose face and act like adults, these clowns have shown themselves willing to inflict massive financial damage on Irish citizens, shrug their shoulders and blame the Brits.

Fück. Wits.
 

raetsel

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The country has once again fallen into the hands of dangerous cretins.

With the Irish taxpayer still holding 71% of AIB stock, this administration had played a lunatic game of anglophobic chicken with Britain. A game that they were always primed to lose.

Rather than lose face and act like adults, these clowns have shown themselves willing to inflict massive financial damage on Irish citizens, shrug their shoulders and blame the Brits.

Fück. Wits.
You're deluded. Acting to defend Irish interests is not Anglophobic.
On the other hand the UK is engaged in a Europhobic game of chicken itself, which it cannot win, as the leak reported in the Sunday Times yesterday illustrates.
Nobody on this forum could confidently predict what the UK government will do between now and the end of October, but my own instinct tells me that they are involved in a desperate bluff, frantically trying to convince the EU that they will pull the trigger and shoot themselves in the head, if they cannot get their way.
I don't believe that they will be so nuts as to to do just that, and I think that view is shared in Brussels. I simply cannot see the EU ever giving into to such a preposterous and amateurish act of brinkmanship when the bottom line is that the UK have everything to lose and cannot possibly win, by crashing out.
It is simply idiotic to suggest that the EU should wilt in the face of the UK holding a gun to its own head.
 


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