Irish Banks “Appalling”
The adjective used to describe their lending decisions prior to judgement day…
“Our worst fears have been surpassed,” Finance Minister Brian Lenihan said in the parliament in Dublin yesterday. “Irish banking made appalling lending decisions that will cost the taxpayer dearly for years to come.”
So appalling that the banks need to raise $43 billion to sort themselves out.
Bloomberg: Dublin-based Allied Irish needs to raise 7.4 billion euros to meet the capital targets, while cross-town rival Bank of Ireland will need 2.66 billion euros. Anglo Irish Bank Corp., nationalized last year, may need as much 18.3 billion euros. Customer-owned lenders Irish Nationwide and EBS will need 2.6 billion euros and 875 million euros, respectively.
Irish banks made a name for themselves during the property boom. Anything on the level of a portaloo was deemed sound collateral. Explains why their balance sheets turned to shit when things tipped over.
