http://www.independent.ie/business/...floading-its-22bn-tracker-burden-3023125.html Can anyone explain what is to be gained by this? Let's just say the average tracker is 2.25% and the average cost of funding is 4% at the moment on the €22bn loan book. Option 1 Accept the €400m p.a. loss and hope it runs off relatively quickly or average funding costs come down. The total cost over time might eventually sum up of €2bn, but is only realised when it actually happens. Option 2 Go through a costly admin, legal & accounting exercise of shifting things around the banace sheet and end up needing to capitalise a very prudent estimate of the cost up front (maybe €4bn), paying interest at high rates for the privilege of needing to hold this extra capital. There was an argument for offloading large NAMA type business off the balance sheet of banks as it was the elephant in the room in terms to the complete uncertainty there was around the capital adequacy. This, however, is the banks bread and butter retail business. The annual losses will most likely come down as we eventually ease out of the crisis. The biggest danger is in overproviding for potential losses, crystalising them to an excessive degree of prudence leaving us (the state) with a both higher losses than required and a need to raise even more capital.