Thursday, August 07, 2008
What if the landlords of the banks couldn't pay their loans?
Interesting question posed in the pub a while back- what if either of the sets of people who bought the HQs of the two largest Irish banks couldn't continue to finance their operations? Many people thought at the time that when BOI and ABI sold their HQs and leased them back that this was a sure sign that the property market had peaked. And that may well turn out to be the case. Yet what of the finances of those who bought them, what if they were to find themselves over stretched? Would the banks lean on them or ease off for fear that they might seek to renogitiate the leases