Bank share prices ‘to remain volatile’

DESPITE the recent assurances from Brian Lenihan about staying on as finance minister, bank share prices are destined to remain volatile for some time, warned Goodbody Stockbrokers banking analyst Eamonn Hughes.

While the minister’s reassurance about his illness was encouraging, Hughes said his subsequent remarks on RTÉ had a key bearing on how the funding issues and loan transfers to NAMA will be handled, he said.

The minister’s comment that the NAMA transfers would accelerate losses at the lenders and the Government would provide further capital that could lead to the State increasing its stake in the banks has added to uncertainty, he said.