Ireland to apply for bail-out: Your comments - BBC News

21 November 2010 Last updated at 11:40 ET Ireland is set to apply for a multi-billion euro bailout from the EU and the IMF.

Finance minister Brian Lenihan put no figure on how much may be borrowed, but told RTE radio it would be "tens of billions" of euros.

BBC News website readers in Ireland have been e-mailing their reaction. You can read a selection of their comments below.

I am really worried for the future of this little country and I am unsure of the outcome of the IMF moving in here. If I had a choice I would leave here tomorrow. Kate Kelleher, Monard, County Tipperary

As an Irish citizen, I'm actually relieved that the IMF and EU are finally at the economic helm. I don't think any Irish political party, of any colour, has the guts or policies to implement the policies that will now be enacted under the bail-out. Mike, Ireland

We have a severe winter ahead with many hardships and a country reeling and shuddering from calamity to calamity. Terms and conditions that are part of any bail-out will have to be severe and so should be the treatment of unbelievably irresponsible so-called bankers. N R de Mowbray Jeffrey, Bantry, County Cork

I am most definitely worried. Ireland is about to be bought out and taken control of by some insurmountable legal contract - one more country to be gobbled up by the EU to do with as they wish. These are very worrying times. Ian, Ireland

As hard as things will be, I'm more hopeful for the future now. This country is screaming for a general election and this is now almost guaranteed within the next four months and maybe sooner. David O'Brien, Portlaoise

If Ireland was a limited company, it would have been placed into liquidation by now and the directors would be investigated and prosecuted for the reckless activities they engaged in. Andrew Bonehill, Dublin

I'm worried about the IMF terms but there is a sense that with the IMF here, at least we have people who know what they're doing. I want corporation tax to stay the same and I want senior bond holders of the banks to feel some of the pain. Lar O'Toole, Kilkenny

I think the arrival of the IMF and EU is positive for the country. They will impose economic measures on the Irish government which it has proved incapable of doing in the national interest. The Irish people will be informed of the true extent of the financial difficulties facing the country. Hopefully it will result in economic and political change for the good. David Fitzgerald, Kerry

The government should never have bailed out the banks. Every time the government pumps taxpayer money into the banks, their share prices go up only to fall again. Some people out there are making a lot of money. Anthony, Dundalk

Ireland would have been better served in the long term to default on the debts of its banks and perhaps leave the Euro. Taking responsibility for the failures of banks, both at home and abroad, is unjust. Robert Barrett, Kilkenny

View the original article here

CORRECTED - UPDATE 1-AIG exit plan to slash US bailout costs-official - Reuters

(Corrects break-even share price to $28.70 in paragraph 3)

By David Lawder

WASHINGTON, Sept 30 (Reuters) - American International Group's (AIG.N) plan to exit government support could cut the cost of the U.S. Treasury's bailout program by half, to less than $50 billion based on current market valuations, a senior Obama administration official said on Thursday.

The plan to convert the Treasury's preferred shares in the bailed out insurer to common stock could yield a profit of around $16.5 billion for taxpayers, compared to a previously estimated loss of about $45 billion, the official said.

Under a Federal Reserve and Treasury bailout that exceeded $180 billion at one point, the Treasury invested about $49.1 billion from TARP into AIG, including capitalized interest costs. Based on an actual cash cost of about $47.5 billion, the Treasury views $28.70 at its break-even share price for AIG.

On Thursday, AIG shares were up more than 1 percent to $38.65, a price that hangs a $64 billion valuation on the government's stake.

The administration official cautioned, however, that any declines in AIG's share price could reduce taxpayer profits. But Treasury Secretary Timothy Geithner briefed President Barack Obama that the internal cost estimate for the Troubled Asset Relief Program could comfortably fall by around half from its previous level of around $101 billion, the official said.

The administration is likely to make new TARP cost estimates in conjunction with the end of the government's fiscal year on Thursday and the expiration of authority for new TARP investments on Sunday, the official added.

Under the conversion plan announced earlier on Thursday, the Treasury expects to receive about 1.655 billion common shares in AIG, lifting its stake in the insurance giant to about 92.1 percent from 80 percent.

The conversion, which is subject to successful sales and stock offerings for AIG's foreign assets and repayment of Federal Reserve loans, is being done to give the Treasury a more saleable asset than the relatively illiquid preferred stock it received in the bailout.

The Treasury is still weighing options on how best to sell off the shares, a process that is not expected to start until 2011, the official said.

So the projected cost just went from 800 billion taxpayer dollars to 50 billion, and still headed lower.

And we got to keep our major corporations in business (including GM).

If the right-wing loudmouths hadn’t hammered that this was “Obama’s plan” (which it isn’t – Bush created it) they could take some of the credit.

Lies blow up in your face, boys.

ChazzMann01 Report As Abusive

*We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.

View the original article here