..for example, BOI are outsourcing their IT support to IBM..
I think that AIB has to exist in one form or another. Bank of Ireland seems better placed to weather the storm but in order for there to be a Bank of Ireland there has to be an AIB otherwise Bank of Ireland would be deemed to have an illegal monopoly.
Two weeks ago the perception was that BOI was much better placed than AIB. However, I think that sentiment has been turned on its head with the arrival of the IMF and the talk turned from "recapitalising" to "downsizing".
Plus the revelation that there have been money leaving deposits at a very fast rate (€13 Billion AIB, €10 Billion BOI, €600 million ptsb) isnt helping the situation.
I think no one knows what kind of a banking system we will end up with at the end of the process but it will differ vastly from what is there now.
I work for a financial organisation myself (low level - I swear!) and the fear around the place is there for all to see. We know job cuts are coming but where or how they will manifest themselves is not known. But at the same time I accept they have to happen.
The most telling point I think is the share price. BOI is down today from 39 cent to 26 cent which is a 33% drop. That is huge.
I would like to see any restructuring done quickly and properly so that when we come out the other end, at least we will know where we stand.
24,000 staff now, by the time this is over, I reckon that they will have less than 10,000. All the foreign arms will be for the chop and certain business units in Ireland will be closed or sold off.
Some units may be very busy now but this may be in preparation for the chop because they are linked to foreign arms or because they will be wound down or because they will be sold.
If you are in banking now and want to stay there, invest in becoming an area in risk and compliance as this will be one of the only growth areas.
That and debt collection!
Does that mean the staff will become Public servants?
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