X
xr7
Guest
Tommorow BOI hands over 16% approx. of its shares to the Irish Government in a dividend payment, as the EU Commission has a block on the Banks from paying dividends in cash.
I believe that BOI shareholders, indeed the shatreholders of both main Irish Banks should be alarmed at this prospect of creeping nationalisation.
The Irish Government doesn’t want to nationalise the Banks and has done everything possible over the last 18 months to stabilise the Banks and keep them independent The ECB wants to maintain the independencece of the Banks. The Banks themselves want to remain independent.
So why is this happening?. Apparently BOI have a rule which demands that the dividend due to the State is paid immediately.
However disturbingly, according to an article in an Irish newspaper yesterday, the BOI management could simply have changed the rule, and delayed payment of the dividend until the EU had finished their resructuring report on Irish Banks, which is due to be completed shortly, by which time, the EU block on dividend payments in cash, might have been removed.
But for reasons best known to themselves BOI apparently choose not to do this.
What effect will this have on the share value of Irish Financials on the markets next week? What effect will it have on BOI’s planned attempt to raise a few billion Euros on the markets within the next few months,. If the Irish newspaper article is to be believed, they have little chance of raising that cash now. That would mean the Irish Government would again have to provide the necessary funds leading to increased State ownership of BOI.
Why aren’t BOI share holders asking their management board, why they didn’t change the rule ,which forces them to pay the dividend to the State tomorrow? Why aren’t they asking their Board, why they are apparently sabotaging their own attempts to raise cash on the markets, with this move towards nationalisation. Are Irish shareholders too timid to ask questions and demand answers, in time, about their shares and the management thereof, or would they prefer to wait until the value of their shares has disappeared completely, and then complain and make a scene, as they did at their respective AGMS when it was too late and totally useless.
Irish shareholders are a small group compared to the entire population of this country. They need to ensure that their interests are not lost, at the present time, when there are so many complaints and interest groups occupying the Governments attention.
Ask BOI why they didn’t change their own rules to delay payment of the dividend to the State. Ask the Government(which seemed to take the dividend, with undue haste), for reassurance that their policy on maintaining the independence of the Banks remains the same. Also ask the Government to ensure that the EU Commission, removes their block on the payment of dividend payments in cash, at the earliest possible date, and certainly before May ,when AIB is due to pay its dividend to the State.
Lets make sure that we don’t have creeping nationalisation at AIB as well.
It would be ridiculous and farcical at this stage if Irish Banks were to be nationalised by default, due to an EU rule, or due to laziness or complacency of their Boards of Management or due to the failure of their shareholders to actively protect their financial interests.
Perhaps this website could take on the role of a watchdog for the interests of Irish Bank shareholders during the present situation by providing constant updates and explanations of developments affecting the Banks and their shareholders. It could provide a place where shareholders could discuss issues concerning the value of their banking shares and developments affecting them so that they could ensure that no further moves towards nationalisation of the banking indusry by stealth, takes place in Ireland.
I believe that BOI shareholders, indeed the shatreholders of both main Irish Banks should be alarmed at this prospect of creeping nationalisation.
The Irish Government doesn’t want to nationalise the Banks and has done everything possible over the last 18 months to stabilise the Banks and keep them independent The ECB wants to maintain the independencece of the Banks. The Banks themselves want to remain independent.
So why is this happening?. Apparently BOI have a rule which demands that the dividend due to the State is paid immediately.
However disturbingly, according to an article in an Irish newspaper yesterday, the BOI management could simply have changed the rule, and delayed payment of the dividend until the EU had finished their resructuring report on Irish Banks, which is due to be completed shortly, by which time, the EU block on dividend payments in cash, might have been removed.
But for reasons best known to themselves BOI apparently choose not to do this.
What effect will this have on the share value of Irish Financials on the markets next week? What effect will it have on BOI’s planned attempt to raise a few billion Euros on the markets within the next few months,. If the Irish newspaper article is to be believed, they have little chance of raising that cash now. That would mean the Irish Government would again have to provide the necessary funds leading to increased State ownership of BOI.
Why aren’t BOI share holders asking their management board, why they didn’t change the rule ,which forces them to pay the dividend to the State tomorrow? Why aren’t they asking their Board, why they are apparently sabotaging their own attempts to raise cash on the markets, with this move towards nationalisation. Are Irish shareholders too timid to ask questions and demand answers, in time, about their shares and the management thereof, or would they prefer to wait until the value of their shares has disappeared completely, and then complain and make a scene, as they did at their respective AGMS when it was too late and totally useless.
Irish shareholders are a small group compared to the entire population of this country. They need to ensure that their interests are not lost, at the present time, when there are so many complaints and interest groups occupying the Governments attention.
Ask BOI why they didn’t change their own rules to delay payment of the dividend to the State. Ask the Government(which seemed to take the dividend, with undue haste), for reassurance that their policy on maintaining the independence of the Banks remains the same. Also ask the Government to ensure that the EU Commission, removes their block on the payment of dividend payments in cash, at the earliest possible date, and certainly before May ,when AIB is due to pay its dividend to the State.
Lets make sure that we don’t have creeping nationalisation at AIB as well.
It would be ridiculous and farcical at this stage if Irish Banks were to be nationalised by default, due to an EU rule, or due to laziness or complacency of their Boards of Management or due to the failure of their shareholders to actively protect their financial interests.
Perhaps this website could take on the role of a watchdog for the interests of Irish Bank shareholders during the present situation by providing constant updates and explanations of developments affecting the Banks and their shareholders. It could provide a place where shareholders could discuss issues concerning the value of their banking shares and developments affecting them so that they could ensure that no further moves towards nationalisation of the banking indusry by stealth, takes place in Ireland.