Bank of Ireland’s share price plunged to levels not seen since the early 1990s. While bank stocks in general have been trashed, Bank of Ireland has suffered more than most. By yesterday morning, the bank was trading at less than 10% of its February 2007 peak. By mid-morning, the stock had reached a paltry €1.50.
What we have is an institution [BOI] which has lost the confidence of the markets, a bank now ranked in the eyes of investors alongside, exposed banks, its reputation on the floor.
In the absence of a major re-capitalisation, Bank of Ireland may simply limp along providing a trickle of loan capital to customers, acting as a drag on a struggling economy and providing the prospect of a tasty meal for an overseas predator once international credit markets recover. So much for men with “safe pairs of hands”.
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What we have is an institution [BOI] which has lost the confidence of the markets, a bank now ranked in the eyes of investors alongside, exposed banks, its reputation on the floor.
In the absence of a major re-capitalisation, Bank of Ireland may simply limp along providing a trickle of loan capital to customers, acting as a drag on a struggling economy and providing the prospect of a tasty meal for an overseas predator once international credit markets recover. So much for men with “safe pairs of hands”.
Read On...
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