Allied Irish Banks Significantly Overvalued Versus Bank Of Ireland

Studioso Research submits:On 01 July 2011, Allied Irish Banks (AIB) announced that it intends to raise 5 billion EUR in new capital at a price of 0.01 EUR per share.

Late last week I posted Allegations Of Big Irish Banks Operating Without A License wherein a reader detailed his detaili

As was to be expected, the defense of Allied Irish Banks has begun. Let's delve deeper into this bank capital/liquidity thing, shall we? I caution thee, though. Often, the deeper you look, the more you wil find.

By Studioso Research:Bank of Ireland’s NYSE-listed ADRs (IRE) have been trading at a significant premium to the bank’s London/Ireland listed shares (symbol BKIR.L) since late 2010. There does not seem to be any legitimate reason why IRE is trading at a much higher price than BKIR.L.

John M. Mason submits: We have been given Quantitative Easing 2 ((QE2)) by the Federal Reserve System in the United States and now we are facing Stress Tests II ((ST2)) to be imposed on banking institutions in the European Union. Will we eventually be facing Financial Reform Act II ((FR2)) that will incorporate the next round of regulatory reforms of the financial system of the United States?

David Hunkar submits: The table below lists the Year-To-Date (YTD) performance of the exchange-listed Irish ADRs:

Zacks.com submits: In an effort to generate sufficient capital, Allied Irish Banks plc (AIB) announced yesterday that it would sell its 22.4% shareholding in M&T Bank Corporation (MTB).

Yesterday Allied Irish Banks (AIB) appeared in the Big Losers after The Irish Times quoted Bloxham stockbrokers stating "The combination of factors could see Government owning 40% of Bank of Ireland and over 70 per cent of AIB as the Government converts preference shares to bolster the capital strength of both banks. " Today, Allied Irish continues its slide, with the stock currently down more than 5.