IRISH STOCKBROKING:THE EXTENSION of the Government's bank-guarantee scheme to Goodbody stockbrokers – as a subsidiary of AIB – confers no competitive advantage, according to its competitors.
None of the five other brokerages contacted yesterday identified any grounds to object to Goodbody being included under the scheme.
One Dublin stockbroker said over recent weeks “every Irish stockbroking has been checking their exposure to Lehmans or any other firm that was on the verge”.
“The fact is that it can’t hurt your cause as, in theory, it should be safer dealing with a broking house insured by the Government because at least you know you will get paid should anything go wrong. But I don’t see the competitive advantage. Is there anything they can do that we can’t? No.”
Another broker said because all stockbroking firms operate deposit accounts with client funds held in the six guaranteed banks “there is no advantage for Goodbody over anyone else because all client funds are guaranteed”.
