SOURCE: The Bedford Report

The Bedford Report

September 12, 2011 08:16 ET

Spiking Insurance Costs and Debt Concerns Weigh on Bank of Ireland and Royal Bank of Scotland

The Bedford Report Provides Equity Research on Bank of Ireland & Royal Bank of Scotland

NEW YORK, NY--(Marketwire - Sep 12, 2011) - Economic strategists continue to argue that the eurozone's financial system would be close to collapse without emergency loans from the European Central Bank (ECB). Of concern are warnings from the ECB that these loans cannot last forever. While not part of the Eurozone, UK Banks are also greatly affected by events that occur within the currency union, and have struggled in a similar fashion to other European financial institutions. The Bedford Report examines the outlook for companies in the Foreign Banking Sector and provides stock analysis on The Bank of Ireland (NYSE: IRE) (LSE: BKIR) (Irish: BIR.IR) and Royal Bank of Scotland Group (NYSE: RBS) (LSE: RBS). Access to the full company reports can be found at:

Billionaire investor George Soros recently warned that the eurozone's debt problems could be worse than the Lehman Brothers' collapse due to a lack of leadership on the Continent. In an interview with The New York Times, Soros argues that European policymakers have not come up with measures to help fund European banks, whose shares are now back at their lowest point since March 2009. "The lack of an authoritative pan-European body to handle a banking crisis of this severity is causing a huge problem," he added.

The Bedford Report releases investment research on the Foreign Banking Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at and get exclusive access to our numerous analyst reports and industry newsletters.

Bank of Ireland's reliance on emergency funding from the European Central Bank and its own central bank fell to 29 billion euros from 31 billion at the end of December. The company's underlying operating profit shrank by two-thirds in the first half of 2011 on steeper funding costs. The cost of the government guarantee of Bank of Ireland's liabilities rose 58 percent from a year ago to 239 million euros in the half.

In the UK, a recent report from The Telegraph finds that default insurance cost on the British state-owned bank Royal Bank of Scotland has again spiked to all-time highs amid growing concerns for the outlook for the industry. As of last Tuesday, the annual cost of insuring £10m of the bank's bonds against default is £355,000.

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