Frank Fahey and the banks

It was interesting to see Frank Fahey in yesterdays Irish Times calling for the government to invest in the banks. In a statement that might lead one to think that he doesn’t grasp the principles involved in investing through the stock market, he says:

I advocate that our Government should consider these issues. There is no risk involved in that the money will be repaid.

Buying shares in the banks is hardly a risk free investment.

Then again, Mr. Fahey would know – him being a shareholder (or at least was) in both Bank of Ireland and Irish Life & Permanent (Permanent TSB). A Government recapitalisation of the banks would definitely put a floor under any losses that he may have on those investments.

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One Response to Frank Fahey and the banks

  1. dublin-flyer October 20, 2008 at 20:25 #

    How’s this going to work, taking a stake in the banks?

    Given the Aer Lingus fiasco with the dropping of Shannon for Belfast, do we really think that the government is going to have any control over the banks?

    They have what, 40% or something in Aer Lingus and couldn’t stop them exporting jobs to another country.

    The government won’t get even close to that amount of equity in the banks, so what would be the point?

    df

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