Posts tagged 'Allied Irish Bank'

The eejit market in AIB [update]


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LTRO names n’ numbers (so far) [updated]

Not all 800 banks who tapped the ECB’s second three-year liquidity op — obvs. But…

[DJ] Intesa Sanpaolo Took Up EUR24B Of ECB’s LTRO – CEO

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A Bank of Ireland mystery

Behold, a modern-day banking miracle.

From a Bank of Ireland press release on Monday: Read more

Questions to which the answer is yes, AIB credit event edition

Has a credit event occurred with respect to Allied Irish Banks’ buyback of sub debtRead more

An Allied Irish credit event query, redux

Readers are at this point excused a slight sense of déjà vu

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Snap news

Breaking pre-market news on Thursday,

– Kingfisher says group retail profit up 20 per cent in Q1; warns of more challenging Q2 — statementRead more

AIB bond holders challenge Dublin

Junior bondholders in Allied Irish Banks will take the Irish government to court on Thursday over its plans to slash the value of their investments in a test case of Ireland’s tough stance on burden-sharing, reports Reuters. Dublin is hoping to cut around 5bn euros (£4.4bn) from a 70bn-euro bill for bailing out its banking sector by imposing losses of up to 90% on junior bonds in AIB, Bank of Ireland , Irish Life & Permanent and EBS Building Society . But two bondholders in AIB, Aurelius Capital Management and Abadi Co, are challenging the court order issued by Finance Minister Michael Noonan imposing losses of between 75 and 90% on 2.6bn euros of AIB’s subordinated debt.

Allied Irish and a collapsing capital hierarchy

And the Allied Irish credit event query is — gone!

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An Allied Irish credit event query [updated]

Fresh on the Isda website, and spotted by a reader:

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Snap news

Breaking pre-market news on Tuesday,

– Allied Irish Banks declares €10.2bn loss — statementRead more

Irish bank tests to show ‘€20bn hole’

Stress tests on Ireland’s four main lenders will reveal a capital hole of around €20bn (£17.6bn) in results to be published on Thursday of tests on Bank of Ireland, Allied Irish Banks, Irish Life & Permanent and EBS Building Society, reports Reuters, citing the Sunday Business Post. Earlier, the FT reported that Ireland is trying to secure a deal with the European Central Bank to contain the country’s banking crisis after the test results are published. Dublin wants about €60bn ($85bn) in medium-term funding from the ECB to replace emergency help from Ireland’s central bank. But the ECB is demanding that Dublin first honour its pledges to recapitalise its banks – and could threaten to cut off support. The standoff presages a fraught week for the new government of Enda Kenny, the Irish prime minister, with missteps likely to weaken investor confidence in Irish banks and the eurozone’s stability.

Allied Irish coupons: still alive

Some palaver in the market on Tuesday that one or the other of a) Ireland or b) Allied Irish Banks had missed a coupon payment…

It’s not true. On either count. Read more

Irish mortgages everywhere – but not a one to collateralise with?

So. This is an interesting chart:

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European liquidity and Irish handcuffs

Even with Ireland’s Fine Gael party leading in the polls — the market is pricing in a one in three chance of senior bank debt investors taking a haircut.

Why? Read more

Irish bank transfers approved

Ireland’s bank restructuring moved forward on Thursday after Dublin approved the transfer of deposits from Anglo Irish Bank and Irish Nationwide Building Society, the nationalised institutions most affected by the collapse of Ireland’s property market, reports the FT. Allied Irish Banks has bought €8.6bn ($11.9bn) worth of deposits from Anglo Irish for an undisclosed sum, while Irish Life & Permanent acquired the €4bn deposit book of Irish Nationwide. The deal improves the loan-to-deposit ratios of AIB and Irish Life – a key objective of the bank restructurings. The sales follow an auction run by the National Treasury Management Agency – the government’s national debt auction body – which indicated there had been some international interest.

The Irish banking angle in muni bonds

This is a bit of a curio given the muni market’s wider problems and controversies over investor disclosures, but it’s perhaps a lesson in microcosm. From Fitch on Friday:

Fitch Places Muni Bonds on Watch Negative Based on 2/18/2011 Placement of Allied Irish Bank on RWN

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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. Read more

Santander bids $5.8bn for Zachodni

Santander of Spain, the eurozone’s biggest bank by market cap, has launched a €4.29bn ($5.8bn) bid to buy all of Poland’s Bank Zachodni WBK, in which it agreed last year to buy a 70% stake from troubled Allied Irish Banks, reports the FT. The offer for AIB’s stake as well as the 30% owned by minority investors runs from Feb 24 to March 25. Santander has been expanding aggressively in emerging markets as well as in the US and UK in efforts to cut its dependence on Spain’s troubled domestic banking market. The Santander group’s net profit fell 8.5% to €8.18bn in 2010, largely because of provisions and write-offs for bad loans in Spain. The BZ WBK bid, announced on Monday, had been expected, although some analysts expected Santander to wait until it had regulatory approval for the purchase of the AIB stake. Santander is offering 226.89 zlotys a share, a premium of almost 10 zlotys on BZ WBK’s Friday close of 217 zlotys.

Merrill’s missing Ireland note

One of the most damning bits of Michael Lewis’ “When Irish eyes are crying” article concerns a zoology student, ‘business relationships’ and a missing Merrill Lynch note.

Here’s the extract via Barry Ritholtz over at Big Picture: Read more

Epitaph for Allied Irish Banks — the statement

Direction Order Read more

The diluted Allied Irish Banks

The price action in Allied Irish Banks on Thursday morning:

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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): Read more

Snap news

Breaking pre-market news on Tuesday,

– Allied Irish Banks won’t make bonus payments — statementRead more

Ireland’s AIB drops €40m bonus plan

Allied Irish Banks, which has already received €3.5bn (£3bn) in state aid, has been forced to drop plans to pay €40m in bonuses to 2,500 staff, after Brian Lenihan, Irish finance minister, threatened to withdraw taxpayer support for the bank, reports the FT. The move, which requires special legislation, came after Lenihan wrote to the bank on Monday warning that its financial survival depended on not paying the bonuses. The bonuses were awarded in respect of 2008, before the financial crisis. No bonuses were awarded for 2009 or 2010. But the issue has unleashed public anger despite the bank’s claims last week that it had a contractual obligation to pay bonuses following legal action by several staff members earlier this year.


The Fed’s Term Auction Facility — started in 2007 to boost short-term liquidity amongst commercial banks — carried a  number of caveats.

This was one of them: Read more

Worst banking conspiracy ever

Have you ever heard of Inter-Alpha? We hadn’t until this weekend, although we tend not to frequent the conspiracy sites that lump it in alongside the world’s Bilderbergs, Rothschilds, and the Stonecutters.

It is a group of banks that meet together to, erm, discuss stuff, but there’s no conspiracy. The truth is that Inter-Alpha’s list of members, are much, much more intriguing than that. Read more

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:

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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): Read more

A de facto nationalisation of the Irish banking sector

The banking team at RBS have produced an excellent note on what Ireland’s quoted banks will look like post-recapitalisation.

And it makes for uncomfortable reading. Read more