Monday 21 October 2019

'He (The Minister) made a balls of it . . . he killed us'

It is about a month after the bank guarantee and international banks are refusing to deal with Anglo or Irish Nationwide. David Drumm asks John Bowe why the market won't trust the State bank guarantee and trade again with Anglo

David Drumm
David Drumm

John Bowe: There is a comment out this morning from RBS [Royal Bank of Scotland], em, on the credit research side basically saying good news for Allied, Bank and Irish Life & Permanent, not so good for Anglo and Irish Nationwide.

Em. . .

David Drumm: How did they come to that conclusion?

Bowe: Ah, well, you know.

Drumm: 'Cause they wanted to.

Bowe: Well, I think what they are doing is they are taking what the minister said quite literally.

Drumm: Systemic banks?

Bowe: Systemic banks.

Drumm: Why are we not systemic in their mind?

Bowe: Because we don't give, pay people's wages and have ATMs and do stuff like that.

Drumm: Oh, yeah, the cash out of the wall.

Bowe: The cash out of the wall.

Drumm: The 100,000 retail customers and the €40-odd billion of lending into the economy doesn't count?

Bowe: Well, it is not deemed to count. They are not. That is the way the media and eh, the markets are interpreting it. They are taking the view that he said very deliberately.

Drumm: Well they are allowed take that view. He just made a balls of it. He killed us.

Bowe: Well.

Drumm: I think they have been trying to kill us, that is the truth of it.

Bowe: Yeah.

Drumm: I think they have been trying to force us into a tougher spot. Like this kind of stuff here, like retail or anything if we saw a problem on the liability side that would give them exactly what they want that they could act under the Central Bank Act, y'know, to protect the stability of the system.

Bowe: Hmm.

Drumm: So em, grand. Well look I'm due to see [Kevin] Cardiff [Department of Finance official] at one so we'll see where that gets us.

Bowe: OK.

Drumm: Alrighty.

Bowe: Thanks, bye.

Three months later Anglo was nationalised.

Sunday Independent

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