Finance Minister Paschal Donohoe was warned that a hefty fine for AIB over tracker mortgages could represent a"negative surprise" as the State prepared to sell a significant stake in the bank.
"What is noteworthy is that these firms are all high-quality names and all but one are what the industry describes as"long only" - ie your traditional pension and investment funds as opposed to hedge funds that tend to have a short time horizon". The submission also explained how there had been two aborted attempts to sell off a large stake in the bank, the first in November of last year.
"All of these factors mean that investor appetite has increased materially in the stock notwithstanding lingering concerns that there is a recession coming in Europe that will harm banks," explained the submission.