So the reason they won’t burn the foreign banks that over-served the Irish industry is the hope that they’ll lend us more in the future. Isn’t that a lot like alcoholics always making sure to pay the bar tab, even as the children go hungry? Credit is what we got too much of.
But to cheer us up, we are to get two ‘universal pillar’ banks. I do like that; we should have more financial institutions that sound like they’re out of pre-Christian mythology. A Department of the Great Sky Serpent, maybe a Unicorn Interest Rate. In fact it sounds a lot better than the names we have for them now, BoI and ABBoI. The new banks should actually be called Universal Pillar 1 and Universal Pillar 2. No wait, Alpha and Omega. “I save with Universal Pillar Omega.” Surely that will restore confidence in the Irish banking sector.
But I don’t really get the idea behind stress-testing the banks. They are already dysfunctional, loss-making, unable to keep their doors open without State and ECB constantly pumping in raw cash. In what way exactly could that get worse?