Irish banks are not newly in trouble, but fresh pressure is only going to further mount pressure on an already battered sector. On Sunday, Ireland’s main opposition party reportedly said that it will not back next month’s budget on the table. The move may further limit an unstable coalition’s odds of passing harsh austerity measures as the majority may not be able to carry the vote. This is taking a toll on Allied Irish Banks plc (NYSE: AIB) and on Bank of Ireland (NYSE: IRE).
Allied Irish Banks plc (NYSE: AIB) and on Bank of Ireland (NYSE: IRE) were both trading lower in overseas trading. The trend is continuing here. Ireland was not so long ago considered one of the greatest opportunities in investing, land, and commerce opportunities. It is becoming, and some would argue already is, the riskiest bet in Europe today.
Bank of Ireland shares are down about 14% at $2.22 in active pre-market trading volume of nearly 1 million shares after a $2.58 close on Friday. Keep in mind that this is a fresh 52-week low if it holds as the 52-week trading range is $2.42 to $12.96.
Allied Irish Banks is actually down less by 8.4% at $0.76 versus an $0.83 close on Friday. Its problems are worse currently as far as a U.S.-listing is concerned. That sub-$1.00 level will now be the case for a fifth day, and ultimately its listing standards in the U.S. will come up for question. This also marks a 52-week and multi-year low as the prior range is $0.80 to $6.31.
This is a classic example of a no-win situation. When it comes to austerity measures, it is always a good idea in theory and very hard to enact in politics. Who wants their pension, retirement, insurance, and/or wages cut? Everyone, as long as it is someone else… Ongoing debt concerns and taxation issues are also weighing, something which just is not going to go away suddenly. Yet the flip-side is that without austerity measures there can be no certain future.
You can join our free daily email distribution list to hear more about ETF trends, dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.
JON C. OGG
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.