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Wilbur Ross AP/Press Association Images

Billionaire Wilbur Ross to sell his stake in Bank of Ireland

The US investor owns 5.54 per cent of the bank’s shares.

US INVESTOR WILBUR Ross is to sell his stake of 1.8 billion shares in Bank of Ireland.

Deutsche Bank said that it is acting as sole bookrunner on the placement, Reuters reports.

Ross’s shares make up 5.54 per cent of the bank’s shares. He bought into the bank in 2011.

Bank of Ireland has not yet released a statement on the matter.

When asked about the news tonight, Minister Joan Burton said that on St Patrick’s Day in New York, Ross “indicated that as an active investor he opens and he closes positions”.

She said that Ross also indicated that he would be interested in other investments in Ireland and he strongly recommended Ireland as a place to invest in.

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71 Comments
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    Mute Sargon
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    Jun 9th 2014, 8:07 PM

    Tidy little profit and off you go. Not ashamed to say I’m a bit jealous

    428
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    Mute family guy
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    Jun 9th 2014, 8:25 PM

    Bank of Ireland refuses to right down loans. Burying head in sand. It will have to do it eventually. Where are some people going to get the money to repay. Other bank have woken up regarding this issue. Come on BOI pull the finger out!

    102
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    Mute family guy
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    Jun 9th 2014, 8:27 PM

    Write

    60
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    Mute Mr Phil Officer
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    Jun 9th 2014, 8:27 PM

    Another vulture fly’s off into the night.

    97
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    Mute Ted Carroll
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    Jun 9th 2014, 9:26 PM

    Who is going to buy his stake?

    53
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    Mute Jeremy Usborne
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    Jun 9th 2014, 10:37 PM

    Anyone can, they just get sold back to the markets.

    47
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    Mute David Keogh
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    Jun 10th 2014, 10:45 AM

    DO you understand buying and selling stocks at all? Had he not put €290,000,000 into them in 2011 the future of BOI would have been totally different. Hes not doing anything wrong. Theres thousands of Irish people doing the same, on a much smaller scale. Lots of people bought shares in 2010 and 2011 and now sell them because they’re 3 times the price. Thats the whole purpose of investing in shares!

    19
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    Mute Jeremy Usborne
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    Jun 9th 2014, 8:22 PM

    Sure why not.
    He bought when no one else was willing.

    And the gov take a fat slice of cap-gains tax.

    Good for him.

    280
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    Mute Simon Barnes
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    Jun 9th 2014, 8:28 PM

    would he not be registered in the US for tax and therefore its the US that gets the capital gains.

    99
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    Mute Colum Roche
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    Jun 9th 2014, 11:11 PM

    Gains on Irish Assets are liable for Capital Gains tax so the Government will get a slice.

    46
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    Mute Clive Hand
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    Jun 10th 2014, 5:32 AM

    Shares are held as trading stock not as an asset this not subject to CGT.

    20
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    Mute John B. Reid
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    Jun 9th 2014, 8:59 PM

    Wilbur Ross should be thanked for his big investment at a critical time for the Irish economy. Mr Ross essentially saved Bank of Ireland from collapse, or worse, take-over by the State which would have made the vital bank little more than another public-sector department.

    182
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    Mute Pedro deluvio
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    Jun 9th 2014, 9:04 PM

    @ john B R

    Right on!

    And the Irish workforce should be given an award for making his investment “sound”.

    88
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    Mute Vinny
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    Jun 9th 2014, 8:47 PM

    The Bank of Ireland
    Wilbur Ross told Bloomberg that the 10% stake he took in Bank of Ireland (NYSE: IRE) was the best investment he’s made since the financial crisis.

    152
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    Mute David Keogh
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    Jun 10th 2014, 10:43 AM

    The shares cost him €290,000,000 in 2011. After tax etc, hes expected to take back approx. €600,000,000. Thats over 300 million profit in 3 years! Smart business man!

    13
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    Mute Liam
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    Jun 9th 2014, 8:21 PM

    Playing it safe… Before the true level of insolvency in bank of Ireland is announced…

    128
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    Mute Thierry Rat
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    Jun 9th 2014, 9:05 PM

    Nothin stopping anyone here buying boi shares, he’s a capitalist get with the programme people

    111
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    Mute Tony
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    Jun 9th 2014, 9:15 PM

    Nothing stopping us but complete lack of funds and will be that way for the foreseeable future.

    52
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    Mute Galwaybay
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    Jun 10th 2014, 7:28 AM

    Oh give it a rest tony. This constant moan about lack of fund is getting a bit tiring. Boi share are 28c. I sure you could afford a few if you put your mind to it

    21
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    Mute Tony
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    Jun 10th 2014, 10:58 AM

    Well for you Galwaybay , poverty bores you does it?
    I envy your position when austerity obviously has not affected you, very sorry for boring you.

    2
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    Mute Galwaybay
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    Jun 10th 2014, 11:41 AM

    Oh I can assure you Tony it has effected me big time. Needless to say I don’t know your circumstances but we now can well in the past or we can get up shake ourselves down and try to make the best of our futures. I choose to do the latter.

    7
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    Mute Ryan Carroll
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    Jun 9th 2014, 8:31 PM

    Someone knows the ”extend and pretend” game is almost up..

    72
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    Mute johngahan
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    Jun 9th 2014, 8:26 PM

    He probably wants to get out before CGT goes through the roof under a new government.

    63
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    Mute Pedro deluvio
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    Jun 9th 2014, 8:42 PM

    Maybe he got wind of the ECB toying with the idea of putting another stress test on Irish banks SME’s portfolios!

    Good luck…. See ya!

    50
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    Mute The_five_lamps
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    Jun 9th 2014, 11:29 PM

    He pumped 1.8bn in when nobody would touch it with a barge poll, took a serious gamble and now he’ll make 3bn profit on that, out of another foreign investors pocket. Fair f@#ks to him!

    48
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    Mute jamie dwyer
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    Jun 10th 2014, 12:00 AM

    Next crash 2015? This fella getting out when the going is good?

    The future might very soon remind us that, for over a quarter of a century, a major financial and economic crisis has occurred every seven years:

    • In October 1987, the Dow Jones industrial average lost 22.6% of its value in a single day; this was the first crash of the computer age. The crisis spread rapidly; on 2 November 1987, it graced the cover of Time magazine: “The Crash: After a wild week on Wall Street, the world is different.” The Federal Reserve (Fed) managed to calm the situation.

    • In December 1994, while a euphoria (“bubble”) of internet-based companies was being pumped up in Silicon Valley, the nearby Orange County turned to derivatives-based speculation, and filed for bankruptcy; a little later, a brutal and brief Asian currency and financial crisis, spread in Russia, Brazil, and then in the United States. Here again, the Fed managed to bring the situation under control.

    • By April 2001, the dot-com bubble, that was formed over the past five years, burst; in one day, the Dow Jones index fell 7.3%. Once again, the Fed managed to calm the situation by creating a flood of liquidity in the economy, that will become subprime mortgage loans.

    • In the summer of 2008, the bursting of the housing (mortgage-backed security – MBS) bubble triggered a new crisis, truly global this time. The central banks and other lenders allowed once more, countries and businesses, to get into debt with low interest rates, without providing the necessary guarantees that they invest and undergo reforms.

    We are nearing the end of a new seven-year period. Bubbles have formed again everywhere. And if growth does not materialize, or if a geopolitical crisis put a halt to it (in Ukraine, China, Brazil or other countries) these bubbles will burst; interest rates will rise; securing debt financing will become very difficult; globalization will do the rest and markets, which no longer say the fair value (Mark-to-market accounting), will panic once again.

    In all logic, this crisis should be triggered in 2015. If not adequately prepared for such a crisis, it will be worse than the previous ones, particularly in Europe. For two reasons: firstly, because almost all the trump cards have been played now – no one will be able to run up further debts – and the European Central Bank (ECB), even by using all means at its disposal, including the most heterodox ones, will be able to do virtually nothing. And secondly because unlike previous crises, the world is still far from being at peace; wars and threats of wars, within and between nations, are increasing making investors more risk averse.

    Thus there will be no other solutions but to foot the bill; in plain language, this means repaying accumulated debts or cancelling them. But this will only come if, in particular in Europe, that includes the participation of the final holders of the debt, that is to say savers, who will watch their savings being plundered, not by inflation, but by a drain on their bank accounts, as was the case in Cyprus (which the recent agreements on the Banking Union explicitly allow, and known as “bail-ins,” though few people know about it).
    very quickly in Europe many thunderstorms will break out. Within the next 18 months.

    37
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    Mute Virtual Architect
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    Jun 9th 2014, 11:36 PM

    He probably tried using BOI’s business online banking system which is like a bad primary school kid’s tech project. That would frighten the shit out of any investor.

    36
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    Mute David W.Fleming
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    Jun 9th 2014, 8:34 PM

    He should put his stake on adverts.ie

    31
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    Mute Repeating history
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    Jun 9th 2014, 11:55 PM

    And that is why he is a billionaire

    31
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    Mute Constance Markievicz
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    Jun 9th 2014, 8:30 PM

    The new Sinn Fein government should nab this vulture capitalist. Profited nicely off the suffering of the working class. Another of the elite middle class muppets.

    29
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    Mute Jeremy Usborne
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    Jun 9th 2014, 8:46 PM

    Onwards comrades!
    North Korea showed us that a peoples paradise is within our grasp!

    123
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    Mute Constance Markievicz
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    Jun 9th 2014, 8:49 PM

    A chara. Please, less of these politically motivated attacks on Sinn Fein and Gerry Adams (Ireland’s Mandela).

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    Mute stephen power
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    Jun 9th 2014, 8:54 PM

    Haha.hilarious stuff.comparing adams to mandela.im only falling around the place laughing

    115
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    Mute Constance Markievicz
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    Jun 9th 2014, 9:15 PM

    A chara, instead of insulting this man please state how he is not an Irish Mandela?

    23
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    Mute Scaldychops
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    Jun 9th 2014, 9:35 PM

    Why Stephen? They both tried ‘talks’ for equality, got nowhere, turned to violence, finally were heard, returned to peaceful methods. Not surprisingly, before he died the great Mandela had requested a Sinn Fein presence for his funeral. It seems Mandela was far happier than you to be not only compared with Gerry Adams but to consider him a friend.

    32
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    Mute Witszend
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    Jun 10th 2014, 12:15 AM

    I thought he would be more like Gandhi.

    Mandela was a terrorist unlike Gerry who was never in the IRA. I forgot that Gerry spent 29 years in the maze, perhaps he got lost!

    Gerry and Nelson twins separated at birth…only their mother could tell them apart.

    And was it Gerry or Nelson who tried to cover up the rape and abuse of his niece, oh it was Gerry, such a nice and decent fellow.

    “In 2000, Liam Adams confessed to his brother that he had raped Aine, but Gerry Adams failed to report this vital information to police for nine years”

    27
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    Mute Peter M Buchanan
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    Jun 10th 2014, 7:15 AM

    Blood soaked hands !

    8
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    Mute Constance Markievicz
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    Jun 10th 2014, 8:06 AM

    A chara. Gerry was not in the IRA, he reported his brother and even the PSNI believe his story so what you are saying is hurtful to a great man and leader. A man who will defend the working class against the elite middle classes. He should be saluted.

    2
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    Mute Neal Ireland Hello
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    Jun 10th 2014, 10:17 AM

    Always wonder why people use the word “muppets” as a term of abuse. Everybody in my generation loved the Muppets and grew up with them.

    2
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    Mute Tony
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    Jun 9th 2014, 8:21 PM

    That’s what I call a vulture.

    29
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    Mute Simon Barnes
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    Jun 9th 2014, 8:29 PM

    Why a vulture? Why bother investing your own monies if you’re not going to buy low sell high?

    155
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    Mute Tony
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    Jun 9th 2014, 9:13 PM

    Not giving out about him, he came in at the right time and is leaving with a good profit. Fair play to him but if you think he was doing us any favours?

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    Mute Pani
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    Jun 10th 2014, 5:19 AM

    Who said he was doing us favours? And why would Boucher get the sack. If you were an incoming investor and seen the last guy just made 3bn profit would you get rid of Boucher?

    9
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    Mute Patlyndo
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    Jun 9th 2014, 11:08 PM

    Good to see some wise posters here. The game is up, Wilbur is taking his tidy profit and running, he didn’t get rich by leaving his investment in an insolvent bank and country.

    Stress tests are on the way.
    Be interesting to see BOI shares tomorrow.

    Question is, what does Wilbur see in the future??

    Answers on a postcard.

    27
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    Mute Pedro deluvio
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    Jun 10th 2014, 1:30 AM

    There was a guy called pat lyndo who wrote a book.

    Could it be?

    1
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    Mute Paul Mc
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    Jun 9th 2014, 8:23 PM

    Good girl Joan Burton the minister for self protection and accountant she knows what a good investment is when she sees one.

    23
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    Mute Neal Ireland Hello
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    Jun 10th 2014, 10:14 AM

    *woman

    1
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    Mute Jim
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    Jun 9th 2014, 9:55 PM

    Stay away Sean Quinn…Stay away. Enough damage done to the tax payer and this country.

    21
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    Mute Lar Moran
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    Jun 9th 2014, 9:40 PM

    This should see an end to Boucher’s zombie tenure

    17
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    Mute Joey Hackman
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    Jun 10th 2014, 10:14 AM

    Lar, you don’t know what you’re talking about.

    4
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    Mute Lar Moran
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    Jun 10th 2014, 10:32 AM

    Unfortunately I do. Boucher is only painting over the cracks. No real reform in BOI. W. Ross knows this. Shares trending downwards now and will be sub 20c by end of summer. Get out when you can!

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    Mute Joey Hackman
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    Jun 10th 2014, 10:36 AM

    Uniformed Las as per usual. U are ignoring the facts

    1
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    Mute Lar Moran
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    Jun 10th 2014, 10:55 AM

    Yes I’m unashamedly ignoring the drivel a lies vested interests like peddle to the ordinary investors…… If you feel strongly about BOI then invest. I wouldn’t. Good luck

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    Mute Joey Hackman
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    Jun 10th 2014, 1:29 PM

    Lar, among the salient facts you ignore is that Wilbur Ross invests in distressed assets worldwide, sits on that investment waiting for a recovery and then cashes in, making a handsome profit. So it’s a positive sign for the Bank to see him moving on

    1
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    Mute Lar Moran
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    Jun 10th 2014, 1:49 PM

    Who are you trying to convince….? BOI share price has come from nothing to 33c and now down to 26c. It would have done that based on the bailout alone. WR knew well that the government was never going to let BOI fail. It was a relatively low risk investment for WR. The underlying problems with BOI are still the same. It may have made a token EBITDA a few months prior to AIB but long term the risk structure is going to stagnate its share price. WR selling his stake says only one thing and that is “this turkey was cooked when I bought it, it’s now cremated, time to turn off the oven” he’s out because he knows BOI is going to stay in the bin for the next few quarters and there are better opportunities out there for him. If BOI was going to reach 50c this year (which it won’t) WR would stay on board. GET OUT now small investors…..

    1
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    Mute Joey Hackman
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    Jun 10th 2014, 2:19 PM

    Lar, the market reaction makes my point and proves you uninformed. I rest my case.

    1
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    Mute Lar Moran
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    Jun 10th 2014, 2:29 PM

    You don’t seem to have a point……. Are you advising buy BOI?

    1
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    Mute Joey Hackman
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    Jun 10th 2014, 2:33 PM

    My point is and was that Boucher’s tenure is/was not zombie

    1
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    Mute Lar Moran
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    Jun 10th 2014, 2:46 PM

    Of course it was. He was in charge of the retail division when they were pushing the 100% mortgages and other such impairments. Since he took over there has been no serious attempt to resolve distressed mortgage holders. They are still clogging up the balance sheet. The risk ratios have got worse. He offloaded a few overheads to tweak the profitability. There is absolutely no performance based improvements under Boucher. Unless they clear out the BOI board (4years too late) the share price will continue to sink and they’ll be back in the red next year.

    1
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    Mute Daisy Chainsaw
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    Jun 9th 2014, 8:59 PM

    Hey Wilbur, I’ll give you $20 and a dozen home baked cookies for the lot.

    16
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    Mute Paul Roche
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    Jun 9th 2014, 10:13 PM

    I’d say Richie Boucher should be relieved, of his post by the next owners of the bank.

    12
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    Mute Tony
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    Jun 9th 2014, 10:54 PM

    Consider it done Paul, I’ll give him the chop.

    4
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    Mute John Lynch
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    Jun 10th 2014, 12:51 AM

    For the risk he took, he deserves nothing less. Fairplay to him, there were plenty with the money, few with the nuts.

    11
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    Mute Karen
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    Jun 9th 2014, 9:08 PM

    Any odds what blood sucking country will buy it off him?
    Any have any guesses?

    7
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    Mute Karen
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    Jun 9th 2014, 9:08 PM

    Any one have any guesses (should have been)

    5
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    Mute Pedro deluvio
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    Jun 9th 2014, 9:34 PM

    Put me out of my misery Karen…. Who?

    21
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    Mute mcbab
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    Jun 9th 2014, 9:35 PM

    What are you raving about Karen ?

    22
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    Mute Small Retort
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    Jun 9th 2014, 9:41 PM

    Tajikistan?

    28
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    Mute Big bad bull
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    Jun 10th 2014, 1:29 AM

    Stick them up on done deal. Under damaged repairable. You’ll sell them in no time!!!!!!!

    2
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    Mute David Bonner
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    Jun 10th 2014, 2:39 PM

    Getting out before the white walkers breach the gates again.. wise.

    1
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    Mute John Flood
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    Jun 10th 2014, 10:24 AM

    Are we sure he personally owns the stock, or is it a holding of the equity firm he owns?

    1
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