Lenihan had apparently noted that public finances are recovering, and also noted that both Bank of Ireland (IRE) and Allied Irish Banks plc (AIB) may need government-backed funds. In short, it doesn’t sound as though the regulators in Ireland are hellbent on wrecking the sector with a 3.5 billion Euro investment in each bank for 25% stakes. There were already reports in December that Allied Irish Banks was going to raise capital in 2010, so today may be more of a formal nod of approval despite some existing woes.
We wanted to see if some of the other trouble spot banks in Europe were higher today, but not anything at all like what we saw in Ireland. In Spain’s largest bank, Banco Santander, S.A. (NYSE: STD) was up ‘only’ over 3% at $16.95, versus a 52-week range of $4.87 to $17.89, after reports last week that Spanish banks are finally starting to unload property portfolios. Its rival bank of Banco Bilbao Vizcaya Argentaria, S.A. (BYSE: BBVA) was up 3% at $18.60 per ADR today. Greece is in perhaps deeper financial trouble with ratings agency turmoil, yet National Bank of Greece SA (NYSE: NBG) was hardly moved today. Shares were up only 0.4% at $5.23 versus a 52-week trading range of $2.09 to $8.37 for the ADR.
To show how crazy the Irish banks have been, Bank of Ireland (NYSE: IRE) share price of $8.97 compares to a 52-week trading range of $0.66 to $20.18. Allied Irish Banks plc (NYSE: AIB) share price of $4.05 compares to a 52-week range of $0.72 to $10.42. That closed-end fund called This even had the The New Ireland Fund, Inc. (NYSE: IRL) with a $7.29 price has a 52-week range of $3.22 to $8.75.
If these banks can poise serious recoveries and recapture any of their former glory for investors, Ireland might change to Irelend.
JON C. OGG
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