Mortgage losses may well push banks over the edge
THE proposed takeover bid for EBS threatens to expose the full extent of Irish mortgage arrears. With almost €100bn of mortgages on their books, the Irish-owned banks are staring at tens of billions of euro of fresh loan losses which could be enough to push them over the edge.
This week a group led by Wilbur Ross, an American hedge fund manager who specialises in buying assets out of bankruptcy, confirmed that it was bidding for State-controlled building society EBS.
As part of his noisy campaign to win support Ross held out the carrot of writing down the mortgages of financially distressed homeowners.