Nugget: Fairfax aquires 35% of Bank of Ireland

From an interesting article in The Globe and Mail:

“Fairfax sent a team to Dublin about two weeks ago to comb through the bank’s loan books and question its credit people. Mr. Watsa met with the bank’s management, and came away believing that, with a recapitalization, Bank of Ireland chief executive officer Richie Boucher would be able to turn the bank around.

Fairfax’s team was left with the impression that the bank has taken larger writedowns in its portfolio of troubled real estate assets than even a worst case scenario would likely suggest, while the recapitalization plan should boost the bank’s Tier 1 capital level to a strong 15 per cent. The bank had been running its property portfolio through scenarios based on what happened in Nevada, the state hit hardest by the U.S. real estate crisis.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s