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 Post subject: Credit Union bailout
PostPosted: Fri Oct 07, 2011 9:52 am 
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yet again my money and yours is being thrown away to cover bad debts
what have we learned from the previous bailouts - nothing
XX
http://www.irishtimes.com/newspaper/bre ... ing53.html

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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 10:00 am 
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"Look! Over there!! It's a Greek default.....

Quick lads, now's our chance.... lob that billun into d'aul credit unions...."


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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 5:59 pm 
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at last some good news XD

After reading this thread (viewtopic.php?f=19&t=24961) back in the day,
I feared for the worse :evil: .......

But 1 billion is good news, there are maybe 3 million credit union members, so that is only €300 each in debt on average

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Former CEO of Bank of Ireland Mike Soden has said many of the people who took out buy-to-let mortgages used the money to fund lavish lifestyles. Who would have made the money, had the market not collapsed? The individual would have.
(http://www.breakingnews.ie/ireland/banks-to-use-rent-receivers-to-collect-buy-to-let-mortgages-561140.html)


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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 6:23 pm 
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Ireland_is_different wrote:
at last some good news XD

After reading this thread (viewtopic.php?f=19&t=24961) back in the day,
I feared for the worse :evil: .......

But 1 billion is good news, there are maybe 3 million credit union members, so that is only €300 each in debt on average


They're making provision for bad debt, not all debt. And maybe it would be more accurate to say "currently known bad debt". Let's hope they don't have Anglo-style selective amnesia, where they remember some extra dross every time they check the books.

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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 6:25 pm 
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Ireland_is_different wrote:
But 1 billion is good news, there are maybe 3 million credit union members, so that is only €300 each in debt on average

How much to the CUs have on deposit?

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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 7:15 pm 
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11.8 bn deposits
5.7 bn loans

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House prices are cyclical, no nation has ever lived through a perpetual house price expansion or contraction.
Money is a public good; as such, it lends itself to private exploitation - CP Kindleberger


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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 7:37 pm 
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johnnyone234 wrote:
11.8 bn deposits
5.7 bn loans


Relatively small sums per person on deposit and big loyalty so no danger of a run on deposits?
OK some silly loans in some places which will cause pain.
Maybe some forebearence required on some less silly loans gone bad.
Big backstop in place from govt.
Not really up to heavy maths on a Friday night 8DD but won't this just work itself out over next few years?


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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 7:46 pm 
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AWAAF wrote:
johnnyone234 wrote:
11.8 bn deposits
5.7 bn loans


Relatively small sums per person on deposit and big loyalty so no danger of a run on deposits?
OK some silly loans in some places which will cause pain.
Maybe some forebearence required on some less silly loans gone bad.
Big backstop in place from govt.
Not really up to heavy maths on a Friday night 8DD but won't this just work itself out over next few years?


OK and in some cases where they have put there surplus deposits will be a factor.


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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 8:35 pm 
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A 17.5% loss rate?! Fuck me.

How much capital do they have?

How much profit did the sector make last year? More to the point, how much profit did those who have bad loans make?

What do we get for our billion?

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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 9:41 pm 
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A bank bailout by the back door maybe.

I could be wrong but I thought all Credit Union investments/deposits are legally obliged to go through the Irish banks.
It's a while since I was told so the detail escapes me, sorry.


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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 10:03 pm 
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Central Bank has "restrictions" on where they can place their deposits...... in credit worthy institutions (???). understand additional time has been given to allow for diversification of deposits...... but where will they go next as there is no more ISTC???


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 Post subject: Re: Credit Union bailout
PostPosted: Fri Oct 07, 2011 10:24 pm 
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yoganmahew wrote:
A 17.5% loss rate?! Fuck me.

How much capital do they have?

How much profit did the sector make last year? More to the point, how much profit did those who have bad loans make?

What do we get for our billion?


Tuam is already 21% provided. So you'd have to guess that a lot of credit union annual accounts are complete works of fiction and need a lot more provisioning. Only a few weeks ago I saw the Chartered Accountants highlighting the audit issues for a Credit Union. I think they were doing special CPD on it.

It's a bit late.



viewtopic.php?f=19&t=19956&start=30

Quote:
The Income and Expenditure and Balance Sheet don't make for nice reading
http://www.tuam-credit-union.com/Credit ... 202010.pdf

Loans to Members 41.1m
Provisions for Doubtful Debts 8.6m

Not Anglo or INBS territory, but still a marvelous achievement!


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 Post subject: Re: Credit Union bailout
PostPosted: Sat Oct 08, 2011 4:37 pm 
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It's a sign of how far we've come. When ICI cost us £400m in the eighties, it was the financial scandal of the decade. Now, when Micky Noonan stands up and says "ah shure the credit unions will need a few shillin's too... maybe half a billion or a billion", it's third billing on the news, almost an afterthought after the banks.

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 Post subject: Re: Credit Union bailout
PostPosted: Fri Jan 13, 2012 7:20 pm 
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Minister for Finance notes appointment of Special Manager to Newbridge Credit Union, -Dept of Finance.

Quote:
The special manager will take over the running of Newbridge Credit Union. In addition, the special manager has been assigned the following tasks.

· To undertake a review of the Newbridge Credit Union with a view to ascertaining its financial position and providing an initial report to the Central Bank within one month.
· To develop a plan to restore the institution’s financial position considering all available options and to provide a report to the Central Bank.

Factfile on Newbridge Credit Union (source: Central Bank)
§ Assets - €190m (per the audited financial statements 2010)
§ Members savings - €163m (per the audited financial statements 2010)
§ Membership – c.38,000 – as reported by the credit union per September prudential return.
§ Staff numbers – Approx. 37 (including part time)


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 Post subject: Re: Credit Union bailout
PostPosted: Fri Jan 13, 2012 9:52 pm 
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Hopefully it is someone off E&Y's Anglo Audit team XX


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