What is truth?

Archive for March, 2010

Dr. Constantin GurdgievWhat might have been!

News Talk explors the NAMA scam

This is an excellent analysis of the financial quagmire
given by Dr. Constantin Gurdgiev,we now find ourselves in and it is people of this calibre we need in government
The Good Doctor would have my vote for Finance Minster anytime.

If your not depressed allready ,you will be after you looked at this
sorry!

Anglo Irish reports €12.7bn loss for 2009

 

Anglo Irish Bank has reported a loss of €12.7bn for the 15 months to the end of December last year, as it set aside just over €15bn to cover loan losses.

Full Annual Report & Accounts

€10bn of the loan loss figure was linked to assets expected to be transferred to the National Asset Management Agency.

Excluding money set aside for bad loans, the bank made an operating profit of €2.4bn, though this included a gain of €1.8bn from a restructuring of its debt.

The bank confirmed the Minister for Finance,  had put a further €8.3bn into the bank, as he announced in the Dáil yesterday.

Anglo Irish also said restructuring of its activities and the NAMA process cost it €42m in the 15-month period.

NAMA plan ,pure folly

David Mc Williams explains ,but there is no mention of the Derivative contracs Anglo is holding along with the AIB and BOI.

These Derivative contracts are all in the red and nobody is takling about them

Is this what Allen Dukes is referring to when he says Anglo will need more funds ??

Are the goverement paying off the huge losses from the other Banks through the Anglo Irish back door??

we need answers!

The Anglo Derivatives Scam

 

 

Mr.Cowen, Mr.Lenihian

 

80% of the Irish people now believe that you are wrong; your NAMA proposals are totally off the wall.

The latest figures your Government are proposing to flush down this toilet is a step to far

You know very well that these figures are again just a drip feed into the general media .even as I write this posting,

Allen Dukes, the nominated CEO of this Toxic entity has come out this morning and said that the extra Euro 10, 000.000.000:00 on top of the already 4, 000.000.000:00 and the 8, 500.000.000.:00

Will not be enough, further funds will be required and this is only for the Anglo Irish catastrophe

Or is it ??? what about the huge losses in the COD’S

I believe that the banks Allied Irish Bank, Bank of Ireland and Anglo Irish Bank are all hopelessly exposed to huge losses as a result of Derivative trading

They should be asked to come clean and give categorical assurances on their Derivative Trading

Apart from the huge losses on their propriety /mortgages business.ie (subprime desaster),  there is another enormous source of losses from the same banks and that is their trading in the “BOND MARKET” again I believe that they have huge exposure here as well

These Banks have lent approximately 400 billion Euros and all of it borrowed from foreign banks, these funds would have had to have  “Hedging ” or have an insurance taken out ,in case of default !

So what kind of insurance did they get then if not Derivatives?

Derivatives typically have a large notional value. As such, there is the danger that their use could result in losses that the investor would be unable to compensate for. The possibility that this could lead to a chain reaction ensuing in an economic crisis, has been pointed out by famed investor Warren Buffett in Berkshire Hathaway‘s 2002 annual report. Buffett called them ‘financial weapons of mass destruction.’ The problem with derivatives is that they control an increasingly larger notional amount of assets and this may lead to distortions in the real capital and equities markets. Investors begin to look at the derivatives markets to make a decision to buy or sell securities and so what was originally meant to be a market to transfer risk now becomes a leading indicator.

These Derivatives were traded like confetti at a wedding and have about the same value now!

Are we now seeing you and your buddies pawning off these huge losses through the Anglo Irish Bank gateway???

see link http://thepressnet.com/2010/01/16/irish-banks-derivative-trading-losses/

I believe you are doing exactly that, I call again you and your Government to tell the truth to the Irish people (your Bosses)

Continuing to hide the truth from the Irish people MAKES YOU guilty of Treason!

Yes I call you a Traitor and anyone who helps to perpetuate this scam is also guilty.

The people will find out sooner or later!

Quinn Group:Financial Regulators drastic action in the courts

 

 

 

With all the various announcements on NAMA yesterday one would be forgiven not to have noticed the enormous Bombshell that was simultaneously hitting the wires about the Quinn Group and the new
Financial Regulators drastic action in the courts .allowing for provisional administrators to QIL, placing Ireland’s second largest insurer into effective state control.

This is mind boggling stuff!

 


The Financial Regulator has unmasked an extraordinary chronology of events.

The immediate catalyst for yesterday’s mercy dash to the Four Courts in Dublin was a telephone call from Jim Quigley, chairman of QIL, to Patrick Brady, the head of insurance supervision in the Financial Regulator on March 24.

Mr Quigley told Mr Brady that four QIL subsidiaries had entered into guarantees on wider Quinn Group debts, the effect of which was to reduce the value of the QIL assets by €448m.

In layman’s terms, it is alleged that cash-rich Quinn Insurance used its assets as security for the liabilities of the Quinn group — ultimately owned by the Quinn family — whose high stakes investment in Anglo Irish Bank resulted in a €1bn loss last year.

The disclosure of the guarantees floored the regulator which had, it has been revealed, asked QIL last January to formulate contingency plans in the event of the failure of the larger Quinn Group.

The regulator, which has been trying since 2008 to require QIL to deliver an “acceptable and viable” financial recovery plan, took immediate action, holding a series of urgent meetings with QIL to analyse the effects of the guarantee’s on the insurance group’s assets which London law firm Allen and Overy calculated as €448m.

It even offered to give QIL a 30-day grace period before seeking to appoint provisional administrators, subject to the conditions that the guarantees would be released and the lenders would allow the Quinn Group to release €35m to its insurance arm.

The 30-day period was offered to facilitate agreements between the regulator, QIL and the Quinn Group’s lenders and note holders.

But the creditors refused and after a marathon series of meetings and conference calls that continued until late Monday night, the regulator moved to place QIL into administration after it became clear that there was no realistic prospect of the guarantees being released.

October 17, 2008:

The Financial Regulator reaches a €3.25m settlement with QIL after it found “reasonable cause to suspect” that regulatory requirements had been breached.

Sean Quinn is also fined €200,000 and steps down as chairman and director of QIL.

November 2008 to December 2009:

QIL submits a series of financial recovery plans to the financial regulator resulting in a €70,000,000 capital injection into QIL to boost its solvency margin and ratio. Quinn later informs the regulator that it will fall below its solvency margin because expected UK profits did not materialise.

Quinn acknowledges its position is “unacceptable”.

Christmas Eve, 2009:

QIL sends an email to the regulator advising that the larger Quinn Group needs a waiver from its financiers in relation to the group’s 2009 year-end debt covenants. Debt covenants are agreements between a company and its creditors that the company should operate within certain limits.

January 18, 2010:

The regulator asks QIL to formulate contingency plans for implementation in the event of the failure of the entire Quinn Group.

March 12, 2010:

The regulator rejects plan, saying the investment returns are “very optimistic” and profit forecasts “unrealistic” and pens a letter to Mr Quigley, stating it is “unconvinced the plan is realistic, sustainable or prudent”.

March 16, 2010:

Mr Quigley meets the regulator to discuss the March 12 letter. During meeting, regulator outlines concerns, among other things, about QIL’s equity and property exposures. QIL submits a revised plan.

March 24, 2010:

QIL drops a bombshell when it informs the regulator about the existence of guarantees by four QIL subsidiaries of advances to the Quinn Group. A plan to release the guarantees is rejected by the group’s lenders and note holders.

March 30, 2010:

The High Court appoints provisional administrators to QIL, placing Ireland’s second largest insurer into effective state control.

Read more: http://www.belfasttelegraph.co.uk/business/business-news/quinn-insurance-crisis-the-phone-call-that-shocked-watchdog-14748829.html#ixzz0jkjzNjG3

Notes from the Irish Trenches

This note was sent to me this morning

 

Notes from the Irish Trenches

 30th. March 2010

RED TUESDAY

The Day the Republic went into TOXIC shock and died.

 Quinn Insurance, one of the biggest insurance companies in the country “appropriates” approx 500 million Euro of client’s collateral and illegally pledges those funds to shore up Quinn Group losses.

 It is understood that the fallout from the expected collapse of the Quinn Group will effect healthcare, the motor trade, construction and general insurance rates throughout the State.

 AIB, Bank of Ireland, Anglo Irish Bank, EBS, Irish National et al are pledged nearly 50 billion Euro on the back of a “Bank Bond Guarantee” which should never have been given. If placed in a Commercial Bank of the Republic this collateral could have been used to fund a new commercial entity with lending capacity of 600 billion Euro. Such an entity could have saved the economy of the Republic.

 It is reported that unemployment may reach 16% by year end. This is despite the fact that record numbers of “students” are returning to college and 60,000 souls are expected to emigrate, with 50,000 non-nationals are anticipated to return home. If these figures were added to the statistical total Ireland’s unemployment figures would look more like 23%.

 Despite union negotiations PRTB offices, Social Welfare offices, Revenue Offices, Land Registry offices, Health Care offices and Hospitals refuse to return to normal services. It is becoming almost impossible to “get anything done in the State.” many say.

 Accountants, Estate Agents, Insurance Brokers, Architects, Trades’ Men, Retail Outlets, Pubs, Bars and Hotels report inability to pay staff or clients due to a collapse in the circulation of money.

 Small businesses, without notice, are told to  reduce overdrafts “immediately”. Some firms are  forced to close. Many have been in business for over 20 years. This is despite the funds pledged from NAMA. The government refuses to “get involved in normal banking operations.” This is as if pledging the credit of the State “is normal banking business.”

 During the day ,around the State, an abnormal number of businesses are “fired”.

 ALONE reports an explosion in the number of suicides.

 The Central Statistics Office reports that in Limerick City, Dublin City and Cork City  over half the new  babies are born to unmarried mothers.

 Unannounced, Social Welfare accommodation subsidies to welfare recipients are cut by 20-30%.

 Ladies and Gentlemen of Ireland if ever we needed a “wake-up call” is was yesterday, Tuesday the 30th March 2010, a day I believe will go down in the annals of Irish history as “Red Tuesday,” the day the Irish Republic was officially ruined by this government. Folks we cannot allow this continue. What does it take, to “take no more” I ask. There are alternatives to this disastrous NAMA policy. Let us now work to set up an alternative and the sole aim of this alternative must be the saving of our country through the promotion of an alternative Commercial Bank of the Republic. The main aim of this State Bank must be the regeneration of the circulation of money in the Republic. If not now, when?

Anglo = Toxic Death for us all!

 

We have 600,000 owner-occupiers with mortgages in the country

Of this group, at least 116,000, according to the ESRI are already in negative equity. This figure could rise to nearly 200,000 by the end of 2010

Personally I believe these figures to be false, and that they are a lot higher just like the unemployment figures

which is more like 23%-25%

Remember we are dealing with a government controlled system that is putting their own spin on all official figures. Last July the Permanent TSB, with 20 per cent of the Irish mortgage market, revealed that 6,000 of its mortgage customers are in 90 day arrears. Nationally, this suggests around 30,000 mortgage holders in arrears. But the cows in the fields know that prices are still falling and the economy is slowly but surely grinding to a halt.

Business is been robbed of the oxygen of funs /credit. Because the banks are not lending or can’t. The countries ability to generate enough money to pay for the already committed loans to bail out the banks is already in question!

The typical mortgage value for first time buyers by late 2007, early 2008 was €250,000, according to the Irish Bankers Federation and €276,000 for people moving house and €263,000 for re-mortgagers. But according to Daft as many as 725,000 properties bought since 2004 are worth less than their last purchase price”.

The total, (based on August ’09 Central Bank stats is €109.6 billion. Only in 2002 that figure were 40 Billion.

The total outstanding mortgage debt in Ireland to the end of December 2009 was just over €109.6 billion. See below

But this still means that, when spread over all those 600,000 mortgaged properties, the average outstanding property debt per mortgaged household now amounts to €182,696. This figure doesn’t include other personal loans or credit card debt or these households’ share of the national debt, which now exceeds €70 billion net, and excludes the €77 billion Total of Anglo Irish Bank

And with half of all the mortgages sold to first time buyers in the two years to early 2008 accounted for by 100 per cent loans, this is a group that is at the greatest risk of losing their homes. Now after the last budget, ironically brought in by the Government that is responsible for this mess the impact on incomes for a considerable number of the 95,000 people who lost their jobs could result in a surge in arrears and mortgage defaults. This is another disaster on its way to most households.

Allowing Brian Cowen and Brian Lenihian to(This Government) to continue to force this NAMA fraud on us is like asking Seanie to go back into Anglo and run it again!

Wake up Ireland we’re Fu**** with this shower in Power!

Get them out !

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