The exchequer costs of the bank rescue need to be minimised ruthlessly, and any opportunities to impose cost on bond-holders exploited in full when the guarantee runs out in September next year. Compensating providers of risk capital to failing businesses infuriates taxpayers, and gives capitalism a bad name. In approaching bank re-capitalisation next year, there should be no nervousness about revealing fully the capital losses which have occurred.
Monday, 14 December 2009
Bank Guarantees, NAMA and budgetary retrenchment
Slí Eile: In an article in yesterday's Business Post, Colm McCarthy made an interesting comment that should not go without attention. He wrote: