AIB share offering doesn’t gloss over a lost decade

ANYONE who has suffered catastrophic financial losses as a result of owning bank shares – or, indeed, because of the reckless activity of the banking system during the Celtic Tiger era – will be justifiably cynical about the new release of AIB shares back on to the market.

The State-owned bank will gradually become a public company again after having to be rescued by the taxpayer.

Nonetheless, it is important for society that there are functioning banks. The State owning a bank is not an ideal scenario by any means. The ordinary citizen has seen little enough benefit as the Government has been unable, or unwilling, to direct policy on mortgage rates, charging and the handling of arrears.

All we are really left with from the folly is a lost decade of ruined lives and debt that will take generations to repay.

The sale of the AIB shares is a positive development as it indicates the bank is healthy enough to stand on its own two feet again. However, caveat emptor – buyer beware. The Irish property market is very volatile. AIB still is a bet on the property market. It is a mortgage lender. The future of the market is out of the bank’s control.

But there will hardly be any shortage of willing shareholders wanting to take up the latest offering.

A lot of people won’t be able to afford the minimum €10,000 to buy in and will simply be left with a sour taste from the experience of the bank’s bailout.