The Mathews Bank Revival Plan
“It’s the only game in town”, as we all know is the spin that the Cabinet of this Government would like you to believe. On the other hand Nobel laureate Economist Joseph Stiglitz has said that paying over current market value is criminal. To disprove the notion that there are no alternatives I post here one excellent alternative and as you well know there have been other plans brought forward by the opposition parties and economists.
Financial consultant Peter Mathews has a plan to recapitalise the banks that proposes seeing the banks back to reasonable health in about 5 years time with minimal or possibly no cost to the taxpayer.
The plan involves creating an overseeing board of directors which would supervise all the boards of all the banks that are brought into the plan. The common shareholders would lose most if not all of their investment with the State becoming the owner until such time as the banks are profitable and refloated as private banks. The banks would be recapitalised with direct injections totalling approximately 30 Billion Euro with write downs of about the same amount. The capital outlay by the state would be recouped, hopefully in full, when the banks are refloated.
The banks already have departments which deal with nonperforming loans and they would retain this responsibility rather than transferring it to a costly public quango. Guestimates of estimated future property values do not come into play at all.
Details of the plan will be posted to this site