How does a government lend €3.5Bn to a Bank which is worth €300m and not take control? Last week we saw the appointment of a new CEO at Bank of Ireland. Obviously he was seen within the Bnk as the best man for the job – and he may well be. But the Bank is in business because the taxpayer through the governmen has lent it €3.5Bn, having previously guaranteed its operations. Time to get real – these are now state businesses – and the government needs to start behaving as if it has taken charge. Anyone being announced as new CEO must have the full backing of the government.
Interesting when you read Paul Krugman in the NY Times – also frustrated at behaviour of US government and its dealings with banks in US. They talk a big game but not walking the talk.