Showing posts with label Exchequer losses from Bank of Ireland. Show all posts
Showing posts with label Exchequer losses from Bank of Ireland. Show all posts

Monday, May 24, 2010

Economics 24/05/2010: Another day of bloodletting at BofI

So, you've paid €0.19-0.32 per rights per share of BofI - following, undoubtedly your brokers advice (for the €0.24-0.32 part of the range, or Friday close per €0.19 bit). You shelved out €0.55 per share on the promise of a discount of 42% on the post-rights price from the brilliant boys at BofI. You are now €0.02-0.15 per share in a hole, or down 2.7-20.8% in a span of 2 trading days (using latest quoted price of €0.725 per share).

Consolation / silver lining?

You could have been an Irish taxpayer (most likely you are), in which case you would be nursing a loss of €0.63-0.83 on your earlier purchases of the same shares, assuming Brian Lenihan cuts the losses and sell the rights (a tall order assumption).

Then again, although all of us lost - either as bank's new shareholders or as taxpayers, there is yet a much more adversely impacted group of people out there - the poor souls who, while paying taxes in this land also bought a-new into BofI rights issue...

Really, a rare example of all lose, no one wins... except for the existent shareholders and BofI management, who so far enjoyed artificial support from the State.

Now, do recall this: on Thursday September 18 2008, our former Leader Supremo Bertie Ahern told George Hook (Newstalk)that: Bank of Ireland shares are €3.80 today. Now, if I meet you here next year, or the year later, do you seriously think Bank of Ireland shares will be €3.80? I'd go out and buy Bank of Ireland shares... that's what I'd do" (quoted from the next day Irish Times - here). Errr...