Finnish Finance Minister ''No Bailout Until Irish Banks Are Restructured''

Horses

Active member
Joined
May 10, 2009
Messages
127
The European Central Bank shouldn’t withdraw support measures including record-low interest rates and emergency liquidity until Ireland has restructured its banks, Finnish Finance Minister Jyrki Katainen said.

“Once we have restructured the banking sector, then the ECB can act again,” Katainen said in an interview in Helsinki yesterday. “The banking sector must be restructured, otherwise help by anybody is impossible.”

ECB Shouldn't Pull Emergency Measures Before Irish Reform, Katainen Says - Bloomberg
 


Social Conscience

Well-known member
Joined
Oct 27, 2010
Messages
1,273
I misread this thread's title initially as I thought it was Lendahand who made this statement – does the Finnish Finance Minster not understand the timeline it will take to restrict the insolvent Irish banks. Close them down and let’s start again.
 

Padraigin

Well-known member
Joined
Sep 22, 2006
Messages
628
does the Finnish Finance Minster not understand the timeline it will take to restrict the insolvent Irish banks. Close them down and let’s start again.



That is exactly what he meant. He was using Euro-speak to say that the failed banks need to buried before anything productive can be done.

Plain common sense.

However, if that were done, then Ireland would not need either the EU or the IMF as that would cure the problem.
 

Eire1976

Well-known member
Joined
Nov 20, 2010
Messages
13,764
It's only correct.

The banks are extremely corrupt, from offshore accounts etc to this.

Root and branch change required throughout.
 

Social Conscience

Well-known member
Joined
Oct 27, 2010
Messages
1,273
That is exactly what he meant. He was using Euro-speak to say that the failed banks need to buried before anything productive can be done.

Plain common sense.

However, if that were done, then Ireland would not need either the EU or the IMF as that would cure the problem.
The current Irish policy towards banks is nationalisation – none of these insolvent banks will be buried sadly and therein lies the crux of the problem.
 

Padraigin

Well-known member
Joined
Sep 22, 2006
Messages
628
If the bank debt were severed from the government debt, then Ireland has no financilal problem. The fundamentals of the Irish economy are strong. The bank guarantee was financial suicide by the Irish government, of course, but it is a finite and short term problem - if the failed banks (or just the worst ones, like Anglo Irish) are taken into bankruptcy, receivership, or whatever, and liquidated.

That ends the problem. The guarantee should be limited to depositors only - no one else. The shareholders are supposed to take a hit when a business fails. If they lose their money when a badly run business collapses, that was part of the deal when they made their investment. If they want their profits in good times, they have to take their losses in bad times. If they wanted to protect their money, they should have removed the bad bank management years ago.

The assets of these failed banks - all that real estate used as collateral for the bad loans - is worth something long term. Right now, it does not have much value in a soft real estate market, but it a few years, it will be worth something again. When these properties are sold, that money goes back into the Irish treasury for the benefit of the Irish taxpayers.

Getting rid of the failed banks is in everyone's best interests, as these are the only thing dragging down the Irish government, the Irish economy, and the Irish people.

Under no circumstances should this temporary bit of insanity on the part of the Irish government - the bank guarantee - be allowed to become a long term economic disaster for the people of Ireland.

Close the worst of the banks now and start liquidating.
 


New Threads

Most Replies

Top