Bank of Ireland Stock Shares Rise as Flowers Is Still Interested in Irish Bank Assets Tuesday, December 7th, 2010 Christopher Flowers, the former Goldman Sachs executive and current head of JC Flowers, said in a statement he would be interested in buying a stake in Bank of Ireland or Allied Irish Bank. Flowers said his choice depends on the guarantees the Government offers for potential banking losses. JC Flowers is a U.S. buyout firm which invests in distressed financial institutions. Bank of Ireland’s stock shares rose 13 percent, or 4.3 euro cents to 36.40 cents, and AIB’s rose 10 percent, or 3 euro cents to 37.80 cents after JC Flowers renewed its interest. Mr. Flowers also said that buying asset portfolios at discounts with support from the Government is a very appealing investment which might attract various investors. There have been other voices which said that Flowers had also been bidding for EBS Building Society as well. According to Ireland’s Government, Irish banks will have to sell loan portfolios and run down non-core assets with indemnities provided by the state to make the bank assets more attractive for potential buyers. The plan is part of the aid package agreed with the International Monetary Fund and the European Union which aims to reduce the size of the Irish banks and to bring loans closer in line with deposits. Patrick Honohan, Central Bank Governor, said in a statement that a part of the 10 billion euro will be allocated to the Irish banks as loan loss indemnities or “credit enhancements” to help them dispose of assets. Financial analyst Ken Darmody said Irish banking assets would attract various investors and it could drive up further capital requirements in Irish banks. http://www.staho.com/bank-of-ireland-stock-shares-rise-as-flowers-is-still-interested-in-irish-bank-assets/208794/
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