Bank of Ireland restructures their equity

Over the weekend, Bank of Ireland went through some major changes to their structure.

This is needed to avoid a future bail out. Fitch, one of the world’s top three credit ratings firm, said the Irish banking system had around 15 percent of non-performing loans. This is about three times the average amount of the European Union countries.

Despite this, Fitch still gave Ireland a rating of A because of the potential economic growth. They gave Ireland this rating on Friday because the economy is supposed to grow 3.5 percent this year which makes Ireland one of the top growers from the EU area for the third consecutive year.

Even with this high rating, Fitch warns Irish banks that this massive amount of problem loans is weighing the country’s rating down.

Bank of Ireland responds by restructuring their equity to protect Ireland if a crisis occurs. This new system protects the Irish bank accounts and minimizes taxpayer bailout.

How it works?

Bank of Ireland will issue two types of equity: senior and junior. This puts the liability of crisis to …

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A simple way to understand Liberty & the Free Market

This is a simple video, and yet a compelling one about some of the fundamental rights of people and of our right to self determination. How does this tie into mortgages or economics? Simply put it shows that the government of a country don’t have the right to force the state to underwrite banks, in fact, it only rewards bad behavior and the end result is that we all pay for a business issue which we did not create, if a bank lends you money it does so by choice, when in reverse (such as our state bailout plan) we were never given any right or choice as to how it would work, or if it was even a good idea. The guarantee was given first and conditions attached last, ill thought out and moral hazard is merely the beginning of it all.

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This is a simple video, and yet a compelling one about some of the fundamental rights of people and of our right to self determination. How does this tie into mortgages or economics? Simply put it shows that the government of a country don’t have the right to force the state to underwrite banks, in fact, it only rewards bad behavior and the end result is that we all pay for a business issue which we did not create, if a bank lends you money it does so by choice, when in reverse (such as our state bailout plan) we were never given any right or choice as to how it would work, or if it was even a good idea. The guarantee was given first and conditions attached last, ill thought out and moral hazard is merely the beginning of it all.

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