Tuesday, 20 October 2009

How are the recapitilisation plans going boys?

One thing that gets pushed off the front pages during the NAMA debate is the fundamental question of how and by how much Irish banks will recapitalise themselves.

So far we know:
  • The banks were insolvent, regardless of fiction that appeared in company accounts
  • The Banks are unloading 77bn of assets on their balance sheet in exchange for 54bn in sovereign paper (and then on to cash via the ECB Refi window).
So how big is the capital hole, how is it going to be filled and by whom? Plans really should be afoot now, but I have not seen so much as a rumour appearing in the press.

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