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12/05/2009
AIB Stock Takes Hit After Bad Debt Disclosure
Allied Irish Bank has watched it's share value plummet after it emerged the bank's bad debt was worse than anyone expected.
The troubled bank lost 13% of its share price during morning trading on Tuesday, after it announced it would need €4.3 billion to take care of its bad debts.
The shock wave in the market was due to the figure being over a billion euro higher than predicted only two months ago.
A trading update issued to the Irish Stock Exchange from the bank blamed declining economic conditions in Ireland for the unexpected sum.
The news comes on the heels of an announcement that chief executive Eugene Sheehy, chairman Dermot Gleeson and finance chief John O'Donnell would be leaving their positions.
The report from the bank added that mortgage arrears in Ireland were climbing and stood at 2% of total mortgage loans at the end of March, compared with 1.5% at the end of December.
Labour Party Leader Eamon Gilmore has called on the Government to introduce a temporary nationalisation of Ireland's banks, and a vote on the policy is due to be taken in the Dail this week.
Mr Gilmore today urged the leading opposition party Fine Gael to support the Labour Party Private Members Motion.
Speaking during a visit to North Kildare, Mr Gilmore said temporary nationalisation of the banks for a limited period was essential to get credit flowing again to small businesses and to get people back to work.
"I know that Fine Gael is instinctively opposed to the concept of public ownership but I hope that, on this occasion, they will set aside their reservations and support the taking of the banks under state control.
"Labour is proposing temporary nationalisation not on any ideological grounds, but as a practical measure to allow the bad loans to be sorted out and a flow of credit to businesses re-established so that jobs can be saved and new ones created."
(DW/JM)
The troubled bank lost 13% of its share price during morning trading on Tuesday, after it announced it would need €4.3 billion to take care of its bad debts.
The shock wave in the market was due to the figure being over a billion euro higher than predicted only two months ago.
A trading update issued to the Irish Stock Exchange from the bank blamed declining economic conditions in Ireland for the unexpected sum.
The news comes on the heels of an announcement that chief executive Eugene Sheehy, chairman Dermot Gleeson and finance chief John O'Donnell would be leaving their positions.
The report from the bank added that mortgage arrears in Ireland were climbing and stood at 2% of total mortgage loans at the end of March, compared with 1.5% at the end of December.
Labour Party Leader Eamon Gilmore has called on the Government to introduce a temporary nationalisation of Ireland's banks, and a vote on the policy is due to be taken in the Dail this week.
Mr Gilmore today urged the leading opposition party Fine Gael to support the Labour Party Private Members Motion.
Speaking during a visit to North Kildare, Mr Gilmore said temporary nationalisation of the banks for a limited period was essential to get credit flowing again to small businesses and to get people back to work.
"I know that Fine Gael is instinctively opposed to the concept of public ownership but I hope that, on this occasion, they will set aside their reservations and support the taking of the banks under state control.
"Labour is proposing temporary nationalisation not on any ideological grounds, but as a practical measure to allow the bad loans to be sorted out and a flow of credit to businesses re-established so that jobs can be saved and new ones created."
(DW/JM)
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Fine Gael Call For Interest Rate To Be Passed On
A Fine Gael's Enterprise spokesman has called on the Government to ensure the recent interest rate cuts are passed on to the Irish public. TD Leo Varadaker said all banks must follow the lead set by AIB, Bank of Ireland, Halifax and Ulster Bank by passing on the rate cut in full.
Fine Gael Call For Interest Rate To Be Passed On
A Fine Gael's Enterprise spokesman has called on the Government to ensure the recent interest rate cuts are passed on to the Irish public. TD Leo Varadaker said all banks must follow the lead set by AIB, Bank of Ireland, Halifax and Ulster Bank by passing on the rate cut in full.
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Ireland WeatherToday:A sunny but frosty start for many. However cloud increases by midday with a few showers reaching the north coast, these mostly light but spreading inland this afternoon. Chilly. Maximum temperature 8 °C.Tonight:A rather cloudy evening with scattered showers. Becoming drier through the night with some good clear spells developing and a patchy frost away from coasts. Minimum temperature 0 °C.
