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’[Something for the weekend] Don’t offer this man a Rakoff
Jed Rakoff is quite the hero. A New York District judge, he has done what the rest of us would love to do, and busted a cosy deal between bankers and their regulators. In early 2007, just when everything was starting to slide,
Snap news
Breaking pre-market news on Wednesday,
- Santander first-half profit down 21 per cent to €3.5bn – statement.
- ArcelorMittal beats forecasts with 22 per cent rise in first-half Ebitda – statement.
A Bank of Ireland mystery
Behold, a modern-day banking miracle.
From a Bank of Ireland press release on Monday:
The Governor and Company of the Bank of Ireland (“Bank of Ireland” or “the Bank”) welcomes today’s announcement by the State of an investment of up to €1.123 billion in the Bank by a group of significant institutional investors and fund managers.
Pensioners win their BoI burdensharing battle
Simply amazing.
After a very vocal campaign highlighting the unfairness of Bank of Ireland’s proposed exchange offer for subordinated debt — which included £75m worth of so-called Pibs that the Irish bank inhereited from Bristol &
FSA says ‘no’ on Bank of Ireland
A swift response from the UK’s Financial Services Authority for once.
Holders of Bristol & West permanent interest-bearing shares (Pibs), a type of subordinated debt, last week asked the FSA to look into Bank of Ireland’s debt restructuring.
Hedge funds vs Bank of Ireland
More hedge funds than pensioners in the lawsuit filed against Bank of Ireland over the weekend:
Related link:
EU warns Ireland over banking plan - FT
UK pensioners 1 Irish bank 0
Irish taxpayers… 0?
For your perusal — a letter sent on Monday by Brown Rudnick to Bank of Ireland, challenging some (coercive) terms in its debt buyback.
Click image for the full letter:
Will the last Irish bank to leave the market please turn out the lights
Quite a bombshell in Bank of Ireland’s latest, after-hours update on its bid to raise €4.35bn in capital to plug crisis losses:
If stockholders approve the proposals, the combination of the proceeds of the Rights Issue,
Why Irish burden-sharing is talking out its backside
First, it was Allied Irish Banks, and a capital structure which had egregiously flipped to favour equity over credit.
Now, as of Tuesday, it’s spread to Bank of Ireland:
The Bank intends shortly to launch a liability management exercise in respect of approximately €2.6 billion of its subordinated liabilities.
Snap news
Breaking pre-market news on Thursday,
- Morgan Stanley gives pre-stabilisation notice on Glencore IPO – statement.
- Bank of Ireland says Irish economy has begun to stabilise – statement.
- Deutsche Bank said to have “privately accepted”
Bank of Ireland – on the liquidity brink back in January, and err, April
From Bank of Ireland’s just-published annual report for 2010:
The Central Bank requires that banks have sufficient resources (cash inflows and marketable assets) to cover 100% of expected cash outflows in the 0 to 8 day time horizon and 90% of expected cash outflows in the 8 day to 30 day time horizon.
Snap news
Breaking pre-market news on Thursday,
- Glencore to raise $9bn-$11bn in London IPO — statement.
- BP and Rosneft extend share swap deadline to May 16 — statement.
- Commerzbank prices cash call at €4.25 a share — statement.
Bank of Ireland – it lives!
The price action early on Friday morning:
No, that’s not an April fool.
Shares in Bank of Ireland really are trading higher.
And that’s because traders and analysts think there’s still an equity investment case and a chance government ownership can be kept below 50 per cent (if subordinated debt holders to play ball).
Snap news
Breaking pre-market news on Friday,
- Bank of Ireland working on initiatives to meet €4.2bn equity capital requirement; shares to resume trading– statement.
- Logitech warns on profits; blames weak retail sales in EMEA region — statement.
Where did Ireland’s secret liquidity go?
Eonia went a bit doolally at the end of January.
Many blamed a lack of front-loading in bank liquidity management as they watched Europe’s key overnight lending rate drift above one per cent for the first time since June 2009.
BoI refuses to go quietly
Bank of Ireland won’t bow to the inevitable.
Monday after (stock) market hours statement:
The Bank is discussing a number of structures with the State to raise the requisite Core Tier 1 capital by 28 February 2011.
An update on NAMA
The National Asset Management Agency update from the Irish government is out and…
Well, we wouldn’t want to deprive you of the gory details so here they are (our emphasis):
The Chairman of the National Asset Management Agency [NAMA],
More burdensharing for Irish bondholders
Surprise! More burdensharing for Irish bank bondholders is here.
Only, it’s rather softer. The considerate side of burdensharing, if you like.
Hot on the heels of the bailed-out Anglo Irish’s discounted exchange offer comes the below from Bank of Ireland.
No short back and sides
Now, this a relief rally.
Allied Irish/Bank of Ireland CDS, via Markit.
The morning after the Irish bailout
Monday’s early price action:
Snap news
Breaking pre-market news on Monday,
- Bank of Ireland to seek €2.2bn from shareholders, capital markets, internal capital management initiatives — statement.
- Irish Life & Permanent says it needs to raise an additional €100m — statement.
Bank of Ireland vows to fight on
Statement released late on Sunday night, in which Ireland’s (ahem) strongest lender says it will try to raise €2.2bn from existing shareholders, internal capital management and in the markets.
But just in case it should fail (and note there’s a few other Irish lenders that need to raise some cash sharpish) the government and its SWF are standing by ready to make up the shortfall.
New capital requirements for Ireland’s banks [updated]
Another €8bn needed, according to the Central Bank of Ireland to get core Tier One capital up to at least 12 per cent — with the possibility of more to come post the March 2011 stress test.
From the Prudential Capital Assessment Review (PCAR) released on Sunday evening (emphasis ours):
Irish fact du jour
Presenting Ireland’s biggest financial institution… Paddy Power!
Related link:
Bonfire of the Irish banks – FT Alphaville
Bonfire of the Irish banks
From sub-debt to equity– shareholders do not like news that Ireland might take a majority stake in the last of its big independent banks, Bank of Ireland.
To rebuild an Irish banking system, part two
We’ve now well and truly progressed to the question not of when but of how much in bailout loans is needed for Ireland, so…
From a note on Friday, we’d point out the estimate of Barclays Capital’s Antonio Garcia Pascual and Pietro Ghezzi (emphasis ours):
The price of an Irish promise [updated]
Some fast-moving developments on the Irish bank funding front on Thursday, flashes via Reuters:
RTRS-IRISH FIN MIN SAYS WANTS TO REASSURE ALL DEPOSITERS THAT THEIR DEPOSITS ARE SAFE
RTRS-IRISH FIN
Patrick Honohan is an honest guy
Denial. Anger. Bargaining. Depression. Acceptance:
The intention is and the expectation is, on their [the IMF's] part and personally on my part, that negotiations or discussions will be effective and a loan will be made available and drawn down as necessary…
A collateral conundrum for Irish banks [updated]
Some more on the funding plights of Irish banks, which’ve hoved into view over those bailout non-talks between Ireland and Europe.
We know that Irish banks increasingly need central bank liquidity in order to survive being shut out of funding markets,
Another banking curate’s egg
Let’s start with positive news from Friday’s Bank of Ireland trading update.
First, earnings look to be in line or ahead of market expectations and there hasn’t been a large increase in bad debts:
Our Corporate Banking loan book has begun to benefit from the general improvement in world economic conditions.