Shares in Bank of Ireland fell to €1 again today.
It has been a volatile few months for Irish Bank shares, soaring on certain news and crashing again. Following the first fall below €1 on November 17, BOI shares rose again hitting €1.50 on November 27th only to fall again over the last 12 days.
Uncertainty over the value of Irish property has casued drops in the value of all irish banks. While all have recognised that there is a deficit in the value of mortgages, there is huge uncertainty around the scale of the deficit. Until such time as this issue is resolved we are likely to see continued volatility. Recapitalisiation as happened in other countries is being considered by the Irish Government however it is unlikely to have the full desired effect given the unique extent of the over-valuation of properties in the Irish property market from 2002 to 2006.