AIB & BoI to be Nationalised?
Given that we’re now talking about €8bn to recapitalise the banks, wouldn’t that shift the balance so far to the State as an owner (compared to the existing shareholders) that it’s effective nationalisation? If we as a country are going to go that far, will the Government decide to go the whole hog and nationalise both banks?
I don’t see €8bn as a recapitalisation project ending up simply being recapitalisation, do you?
February 7th, 2009 at
15:54 in
Politics (Ireland) | tags: aib, bank nationalisation, bank of ireland, brian lenihan, credit crisis, government, recapitalisation
The government will need much more than €8B to fully capitalise the banks. Having listened tot he Taoiseach today and in particular his reference ot corporate governance issues in Anglo, it struck me that corporate governance works both ways and that state directors put in to represent the tax payer also have an obligaion to protect the institution whose board they sit on in the interst of all shareholders.
My niggling worry is that 2 directors may not be enough and also that 2 may not see their role as protecting the tax payer rather repressenting the government or protecting the institution. I’m begining to think nationalisation is the best strategy using the Pension Reserve Fund, after all the assets of these banks are more realisable than Anglo’s