“Spanish policy makers are considering forcing investors who hold equity and junior debt in banks to absorb losses in a restructuring, according to a person with knowledge of the plan. Such burden sharing is among conditions being negotiated with the European Union in a 100 billion-euro ($126 billion) rescue for Spain’s financial industry.”
Oh.
Spain Said to Weigh Imposing Losses on Junior Bank Bondholders (Bloomberg)
Thanks D Rodgers
They call him ‘El Seanio’
After weeks insisting that one of the country’s biggest banks, Bankia, did not need fresh funds, ministers dropped the bombshell last Friday that there was a 23-billion-euro hole in the accounts. They have yet to explain clearly how they will find the money when they are already struggling to finance a spiraling national debt.
BANKS MAY be granted greater powers to contact customers who are in mortgage difficulty, under proposals being considered by the Central Bank.
Under the existing code of conduct set out by the Central Bank, lenders are forbidden from contacting customers who are in arrears more than three times in one calendar month.
It is understood the Central Bank is seeking to review this stipulation, amid concern that some customers are not addressing their arrears problem.
Banks may get greater powers to contact clients in arrears (Irish Times)
Only 9% of the general public in Ireland trust banks, according to the 2012 Edelman Trust Barometer. This is a rise of 3% from last year, but it is still the lowest global trust level in any industry. The barometer is a global survey of trust in institutions across 25 countries and 30,000 people.
Tracker mortgages have become “golden handcuffs” for 400,000 householders who cannot trade up or down without sacrificing the blue-chip loans that automatically benefit from European Central Bank (ECB) interest rate cuts.
Banks and building societies are refusing to transfer tracker mortgages if the customer wants to move house — even if the new property costs the same or less than the original home on which the tracker mortgage was approved.
Instead they must pay off the tracker and go on to a new variable-rate mortgage.
Homeowners Are Trapped By Their Tracker Mortgages (Independent)
Financial Regulator Matthew Elderfield has told banks to stop increasing standard variable rates on mortgages.
In a meeting with the chief executives of the banks, he is understood to have told them that if they do not comply they will face imposed restrictions on their ability to increase rates. The demands came earlier this week when Mr Elderfield held talks with the top six mortgage lenders.
The negotiations were with the CEOs of AIB, Bank of Ireland, EBS, Permanent TSB, Ulster Bank and KBC. It is understood the Regulator is concerned that rising costs for those on standard variable rates is adding to the problem of mortgage arrears.
Ireland’s banks are effectively up for sale, Governor of the Central Bank Patrick Honohan said today.
“They are for sale as far as I am concerned,” Mr Honohan said in an address to Chartered Accountants Ireland in Dublin. “I’ve been an advocate for a number of years for small countries to have foreign owners for their banks.”
Wonderful. Just in time for Christmas. And with a full guarantee thrown in.
Honohan Says Irish Banks For Sale (Irish Times)
OK. Deep breath…
A report in February 2009 outlined new levels of reduced pay for bankers in exchange for the Government’s €440 billion guarantee.
But an analysis by the Irish Examiner this very morning shows 37 of 44 non-executive members on five of the banks’ boards were paid more last year than recommended in the report.
It also emerged that the banks’ chief executives, whose salaries were capped at €500,000, are receiving benefits including cars and club memberships ranging from €33,000 to €66,000.
One waffer thin mint?
YES!
And by yes we mean ‘not for a while so stop asking’
Bank Of Ireland Post Huge Losses Amid Dud Loans (Business Week)
Just as well, because we’ve had to pawn the rest of the furniture.
LoFi Sofa by designer Christiane Högner. Soft, supportive, gentle on even the most tender and sensitive arse. Take a seat, AIB, BOI and TSB mortgage holders.
Take a seat.
