No risk please, we're Irish.

O

Oscurito

Basically, the news is that we're going to be choosy about what sort of bank we tempt from London in the post-Brexit world. We don't want every snake-oil salesman and tulip-seller. It exposes us to too much risk considering the size of our economy and we lack the regulatory expertise to keep an eye on every cowboy. Been there, done that; we had to sell the t-shirt just to get by for a while.

How different newspapers are treating this story gives a great indication of their political agenda. RTÉ is being quite sober (as is the Irish Times), focusing on how this country doesn't want to become a hub for risky business ventures by large international banks.

The Irish Independent, being that little bit further to the right, seems to be trying to put a negative gloss on the story giving us all to believe, without the above qualification, that "Big UK business banks [are being] told, 'Don’t come to Ireland'". The big blow comes in the sub-headline: Paris and Frankfurt to mop up thousands of jobs in Brexit fallout. We lose out while the foreigners make hay, eh?

And finally, the Daily Express, a newspaper that struggles to tell the truth about something as basic as the weather, presents it as Ireland shunning the EU and saying that Ireland doesn't want to become a banking hub in any shape or form.

The Daily Express has been inventing a lot of Irish pro-Brexit snubbing of late. This is another example. Post-Brexit? Welcome to the post-truth world, folks.

RPT-Ireland reluctant to host high-risk bank trading after Brexit -sources | Reuters
 


gleeful

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The EXPRESS (they love Caps Lock) is a toilet. Lets not speak of it.

On the main story, the gov is correct. We'd be better pitching for back office functions. We don't want the next crash to start in Dublin.
 

Boy M5

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Basically, the news is that we're going to be choosy about what sort of bank we tempt from London in the post-Brexit world. We don't want every snake-oil salesman and tulip-seller. It exposes us to too much risk considering the size of our economy and we lack the regulatory expertise to keep an eye on every cowboy. Been there, done that; we had to sell the t-shirt just to get by for a while.

How different newspapers are treating this story gives a great indication of their political agenda. RTÉ is being quite sober (as is the Irish Times), focusing on how this country doesn't want to become a hub for risky business ventures by large international banks.

The Irish Independent, being that little bit further to the right, seems to be trying to put a negative gloss on the story giving us all to believe, without the above qualification, that "Big UK business banks [are being] told, 'Don’t come to Ireland'". The big blow comes in the sub-headline: Paris and Frankfurt to mop up thousands of jobs in Brexit fallout. We lose out while the foreigners make hay, eh?

And finally, the Daily Express, a newspaper that struggles to tell the truth about something as basic as the weather, presents it as Ireland shunning the EU and saying that Ireland doesn't want to become a banking hub in any shape or form.

The Daily Express has been inventing a lot of Irish pro-Brexit snubbing of late. This is another example. Post-Brexit? Welcome to the post-truth world, folks.

RPT-Ireland reluctant to host high-risk bank trading after Brexit -sources | Reuters
Glad Central Bank is on top of things as they were 10 years back - We are already home to Citibank Europe. Which is part of a globally systemically important bank group (which has to have more capital).
Those "British" banks are UK subsidiaries of large international groups - which due to passport rules can't trade with EU when the UK Brexits.

Irony is that our bankers were bad at the basic stuff - like lending money & managing concentration risk.
Never mind the investment "banking" stuff.
How about Depfa?

Have we got a building with a big enough dealing floor?

Has Jim "soft landing" Power made a pronouncement yet, if he can't spot a housing bubble visible to the naked eye from Pluto,what hope has he of understanding derivatives?
 
O

Oscurito

The EXPRESS (they love Caps Lock) is a toilet. Lets not speak of it.

On the main story, the gov is correct. We'd be better pitching for back office functions. We don't want the next crash to start in Dublin.
I dip my toe into it every now and again just so I can feel smug and superior about the 1.1 million fools who actually pay money for it.
 

gleeful

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I dip my toe into it every now and again just so I can feel smug and superior about the 1.1 million fools who actually pay money for it.
To be fair, its only 10p which makes it virtually an free ad sheet.
 
O

Oscurito

Glad Central Bank is on top of things as they were 10 years back - We are already home to Citibank Europe. Which is part of a globally systemically important bank group (which has to have more capital).
Those "British" banks are UK subsidiaries of large international groups - which due to passport rules can't trade with EU when the UK Brexits.

Irony is that our bankers were bad at the basic stuff - like lending money & managing concentration risk.
Never mind the investment "banking" stuff.
How about Depfa?

Have we got a building with a big enough dealing floor?

Has Jim "soft landing" Power made a pronouncement yet, if he can't spot a housing bubble visible to the naked eye from Pluto,what hope has he of understanding derivatives?
*Shrugs*

I don't know. I'd be pretty sure that things are better than they were pre-2008. The fact that they're turning away jobs because of the fear of risk involved shows that some lessons have been learned.
 

gleeful

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*Shrugs*

I don't know. I'd be pretty sure that things are better than they were pre-2008. The fact that they're turning away jobs because of the fear of risk involved shows that some lessons have been learned.
This kind of trading should be regulated at the EU level in any case.
 

Boy M5

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*Shrugs*

I don't know. I'd be pretty sure that things are better than they were pre-2008. The fact that they're turning away jobs because of the fear of risk involved shows that some lessons have been learned.
What does Citibank do in Dublin?
In fairness the 2008-12 lessons were they are incompetent at managing basic lending & concentration risk.
Pretty abysmal really.
 

gleeful

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What does Citibank do in Dublin?
In fairness the 2008-12 lessons were they are incompetent at managing basic lending & concentration risk.
Pretty abysmal really.
Dont forget Depfa bank based in the IFSC, which collapsed at a cost of 100 billion euro (Merkel picked up the tab on that)
 

Spanner Island

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Adopting a cautious approach is a good thing imo.

I'd support an overly cautious approach tbh... as I just don't see how relocating a bunch of w*nker bankers to Dublin would be much good for us...

We've got a housing crisis that is likely to persist. Property prices are extortionate and having a load of w*nker bankers landing here would mean those prices coming under further upward pressure among other things...

I dunno... I just hate the banking sector.

It creates nothing of any real value and just seems to be a bunch of glorified gambling w*nkers for the most part... particularly the forex, investment banking and hedge fund bits of it...

The global financial system is going to collapse at some stage too... under the weight of all the global debt it's been allowed to create... so f*** 'em. We don't need any more w*nker bankers here.

Better to target real companies that produce real products that have some real value who want an EU base.
 

McTell

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No
Basically, the news is that we're going to be choosy about what sort of bank we tempt from London in the post-Brexit world. We don't want every snake-oil salesman and tulip-seller. It exposes us to too much risk considering the size of our economy and we lack the regulatory expertise to keep an eye on every cowboy. Been there, done that; we had to sell the t-shirt just to get by for a while....
RPT-Ireland reluctant to host high-risk bank trading after Brexit -sources | Reuters

That's it. Back-office staff only need apply from now on.

What a pity, they should allow more banks to set up here, and trade and maybe go bust; if they go bust, make it clear - no state handouts. It's very simple.
 

Spanner Island

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That's it. Back-office staff only need apply from now on.

What a pity, they should allow more banks to set up here, and trade and maybe go bust; if they go bust, make it clear - no state handouts. It's very simple.
Would you really trust anyone here in 'establishment' Ireland to impose a water tight contract/regulation on anything?

They couldn't even get us off paying debts we were never liable for.

And even if they had something in place... we saw exactly how much influence we had in 2008 when it came to clout... and the reality was that we had none.

So even with protections in place I wouldn't have any faith in them holding in the event of a future collapse...

The EU/ECB etc. would simply do whatever they feckin' well wanted and would stiff us all over again.

Let the French and the Germans take the risk with w*nker bankers if they want it.
 

gleeful

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That's it. Back-office staff only need apply from now on.

What a pity, they should allow more banks to set up here, and trade and maybe go bust; if they go bust, make it clear - no state handouts. It's very simple.
For a "No Bailout" rule to work, it would also have to be illegal for state guaranteed banks to lend to 'no bailout' banks, or to invest in them or buy them. In which case, such 'no bailout' banks would be certain to go bust.

Banking's business model only works because of the assumption of state backing when the fit hits the shan. Otherwise people would keep their money in the mattress.
 

Mitsui2

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Given the "regulation" that was (or rather wasn't) applied here pre-2008 we were actually damn lucky, I think - we escaped the horrendous Depfa debacle by the skin of our teeth, and (as best I'm aware) through no great skill of our own.

To judge from what I've heard (and, I must say, much to my surprise) we take these things much more seriously now, at least at the operative level - Christ knows what suicidal politically-motivated decisions our current and/or future leaders will make if tempted.
 

VHF

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@op - you mean a bit like how they controlled certain German casino's, doh I mean banks, at the IFSC. Financial regulation in Ireland is not as intrusive and controlling as they profess to the outside world. It's all about the optics.
 

Civic_critic2

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The client state refuses to go into competition with the controlling state in a matter of central importance to the controlling state. The client state management class wish to present this to their people as new-found responsible governance rather than be called out on the real reasons.
 
O

Oscurito

Dont forget Depfa bank based in the IFSC, which collapsed at a cost of 100 billion euro (Merkel picked up the tab on that)
I don't think that it cost the Germans anything like that much but they certainly did grumble about it and no doubt, it was a factor in their taking of a hard line when the Irish bailout came up in 2010.
 

meriwether

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Adopting a cautious approach is a good thing imo.

I'd support an overly cautious approach tbh... as I just don't see how relocating a bunch of w*nker bankers to Dublin would be much good for us...

We've got a housing crisis that is likely to persist. Property prices are extortionate and having a load of w*nker bankers landing here would mean those prices coming under further upward pressure among other things...

I dunno... I just hate the banking sector.

It creates nothing of any real value and just seems to be a bunch of glorified gambling w*nkers for the most part... particularly the forex, investment banking and hedge fund bits of it...

The global financial system is going to collapse at some stage too... under the weight of all the global debt it's been allowed to create... so f*** 'em. We don't need any more w*nker bankers here.

Better to target real companies that produce real products that have some real value who want an EU base.
Bloody hell.
 
O

Oscurito

That's it. Back-office staff only need apply from now on.

What a pity, they should allow more banks to set up here, and trade and maybe go bust; if they go bust, make it clear - no state handouts. It's very simple.
EU rules forbid bank bailouts now, surely? Isn't that one of the sore points for Italians right now? Lots of small regional banks (and at least one large national one) are in difficulties. In the past, the government would have printed more lire and bailed them out. Now, they can't turn on the currency printing presses whenever they want and in any case, the EC bans state bailouts of banks.
 

Lumpy Talbot

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No
I'm not sure we have much of a choice. When it became blindingly obvious to foreign investment banks that there was a somewhat uneven playing field in Ireland when it came to investment banks- allied to the nosedive in business after 2007- they buggered off.

The back-office stuff will still be done in the IFSC and there will be brass-plaque operations which are one leg of the international tax-dodgery school but I can't see many foreign investment banks eager to set up in the Irish jurisdiction now that they know about the 'unhealthy nexus' between certain Irish banks and our politicians.

When Danske couldn't even get a Minister to pay his loans why the hell would they be interested otherwise?

Not such a bad thing. It is bad enough that the IFSC sits at the centre of the Irish government. Can you imagine the bellytickling that would be going on with ten or twelve investment bank operations sited in Dublin.
 


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