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Why would Santander taking over BofI precipitate this? They've been sniffing around for ages.
by Colman (colman at eurotrib.com) on Thu Oct 2nd, 2008 at 02:47:47 PM EST
What I'm suggesting is that Dublin saw what happened in the banking crisis in Britain, and that this whole affair has less to do with protecting deposits than keeping Irish banks Irish.  Nationalism at work.  Which doesn't play well in a common market.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
by ManfromMiddletown (manfrommiddletown at lycos dot com) on Thu Oct 2nd, 2008 at 03:15:16 PM EST
[ Parent ]
They're not protecting "the Nation". They're protecting the management of the banks in a first instance. Then then the shareholders, and finally the creditors as well as people with more than €20k in deposits.


A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Thu Oct 2nd, 2008 at 04:42:45 PM EST
[ Parent ]
I'm not going to argue with you.  But I think that the heart of it is naked greed dressed up in nationalism.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
by ManfromMiddletown (manfrommiddletown at lycos dot com) on Thu Oct 2nd, 2008 at 04:47:04 PM EST
[ Parent ]
Precisely.

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Thu Oct 2nd, 2008 at 04:50:58 PM EST
[ Parent ]
Don't you want to help me guard me pot o' gold?

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
by ManfromMiddletown (manfrommiddletown at lycos dot com) on Thu Oct 2nd, 2008 at 05:00:22 PM EST
[ Parent ]
That would be bad for the management of BofI. How cozy are they with Cowen?

A vivid image of what should exist acts as a surrogate for reality. Pursuit of the image then prevents pursuit of the reality -- John K. Galbraith
by Migeru (migeru at eurotrib dot com) on Thu Oct 2nd, 2008 at 04:24:17 PM EST
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An Irish Government bailed out AIB before- in the 1980's when they bought an insurance company which turned out to have huge unquantified liabilities.  That left a very bad taste because AIB promptly upped dividends and top salaries etc. and the taxpayer got nothing.

I think ANY Irish Government would be v. uncomfortable with either AIB or BofI - the top two - being taken over by foreigners because there is a residual sense that they are committed to the Irish economy.

I think we may be coming close to the limits of what the Govt. would regard as a vital national interest and would be unwilling to defer to Brussels on.  Not sure what the legalities are, but collegial it ain't.

However there is also a sense that - e.g. the French would also act in their national interest if push came to shove - the difference is that smaller states are expected to be more deferential.

Vote McCain for war without gain

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Oct 2nd, 2008 at 04:51:45 PM EST
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Speaking of banks and dodgy insurers ... I was strolling through me comments earlier today when I came across this curiosity. Eh? says I (to myself). What a coincidence!  

Diversity is the key to economic and political evolution.
by Cat on Thu Oct 2nd, 2008 at 08:32:09 PM EST
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