What is truth?

Archive for September, 2010

Brian Lenihan’s statement this morning.

New NAMA adjustments

1. Loans of less than €20m not being transferred now .

2. NAMA debtors to drop from 1500 to 850

3. NAMA to abandon tranches, replaced with one remaining tranche per Participating Institution (PI – AIB, Anglo, BoI, EBS, INBS) Irish Nationwide Building Society

4. Anglo tranche to be transferred by end of October 2010

5. Loan-by-loan due diligence to continue

6. EU consulted and advised – (But it got EU  approval ?)

7. Loss of sub-€20m loans to reduce NAMA portfolio from €80bn at par value to €73.4bn

8. A 67% haircut expected on remaining Anglo tranche of €19bn (remaining Anglo tranche of €19bn plus T1+2 = €35bn and Anglo was supposed to be selling loans and sub €20m loans are now excluded – is €19bn right?)

9. Large increases in estimates of haircuts remaining tranches – Anglo 67%, AIB 60%, BoI 42%, EBS 60%, INBS – not shown (why?)

source http://namawinelake.wordpress.com/author/namawinelake/

Press Statement 30 September 2010

Central Bank of Ireland

Image via Wikipedia

Press Statement 30 September 2010

The Central Bank today (Thursday 30 September) published its assessment of the capital requirements resulting from the recently announced restructuring of Anglo Irish Bank.

In addition, the Central Bank has published the outcome of its review of the capital requirements of those Irish banks subject to the Prudential Capital Assessment Review (PCAR) exercise, in light of the estimated remaining haircuts to be applied by NAMA.

Anglo Irish Bank Restructuring

The Central Bank has assessed the injection of capital needed to meet minimum regulatory requirements under both a base, or central, scenario, taking account of expected losses, and under a severe hypothetical stress scenario.

This assessment has been applied to both the proposed Funding Bank and the Asset Recovery Bank that will be created. The total capital required for both institutions under the base, or expected loss, scenario is €29.3billion.

Under the stress scenario, in the event that unexpected additional losses are incurred, the Central Bank estimates that an additional €5 billion of capital could potentially be required.

A detailed description of the capital requirements and the methodology used are set out in the attached statement.

Implementation of PCAR Requirements for Irish Banks

The Central Bank has advised the Irish banks subject to the Prudential Capital Assessment Review (PCAR) that the year-end deadline for meeting the standards remains in place. The Central Bank has reviewed the requirements based on the higher NAMA haircuts announced today and which were not available when the original calculations were conducted on 30 March.

The outcome of the review is as follows:


In light of the higher NAMA haircuts, the Central Bank has advised AIB that it will be required to raise an additional €3 billion by 31 December.

Bank of Ireland

Bank of Ireland already has sufficient capital to meet the PCAR standard in the light of the higher NAMA haircuts.


NAMA has not indicated haircut estimates for EBS at this point. Given the small size of the portfolio of loans, the impact of higher haircuts is unlikely to be significant. However, the Central Bank has informed EBS that it will need to take account of higher haircut levels of up to 60% in its capital planning and it should advise acquirers accordingly.


IL&P does not have loans in NAMA and its PCAR is unaffected.


A PCAR exercise has not yet been conducted for INBS in light of the continuing discussion on its restructuring plans.

A more detailed description of the PCAR review is in the attached statement.

Speaking today, Central Bank Governor, Patrick Honohan, said: “Taking account of NAMA’s estimates of future haircuts has implications for required capital injections which need to be acted on now.  The new calculations give clarity and as much certainty as can reasonably be expected to the budgetary cost of the bank restructuring.  The additional budgetary costs – and in particular the higher debt-to-GDP ratio that is implied – confirm the need for a reprogramming of the budgetary profile, though it is important to recognise that the bulk of this reprogramming need arises from other sources.  Today’s announcements take the Irish banking system closer to a final resolution of its restructuring, which is a prerequisite for sustained economic recovery.”

The Head of Financial Regulation at the Central Bank, Matthew Elderfield, said: “The assessment we have published today of the costs of Anglo’s restructuring reflect careful analysis of information from a range of sources.  It also includes a projection based on a prudent hypothetical stress scenario which gives guidance as to the likely upper bound of those costs.  At the same time, we have today confirmed that we are pressing ahead with our plans to require the Irish banks to meet more rigorous capital requirements which are closely aligned with the new international standards set by the Basel Committee and to do so by the year end.  As part of this process, we have advised the banks that they need to take account of developments in the NAMA haircuts which have occurred during the course of the year.  This ensures that the banks’ year end capital position fully meets the objectives of our Prudential Capital Assessment Review process.”

A day of Action

 I went to Dublin to-day to protest at the continuing government support for the toxic Anglo Irish Bank .It is quite unbelievable that nearly two years have passed and no one has gone to Jail, no one has been found guilty of fraud or corruption and 25 billion has just evaporated into thin air and billions more are going to be squandered supporting it along with making the 4500 staff civil servants and that just Anglo Irish 1.

Now we have an Anglo Irish 2 and how many staff will that take?

It would appear that the government is just plodding along from one crisis to the next

Here are some of the pictures I took, just to give you a flavor of what the day was like

Did it change anything? No but I du feel I am doing something!

More Snouts in the Trough

Photo Machholz

 The €21,500 hotel bill & Mary McAleese’s €3,198 room

A SINGLE night’s accommodation for President Mary McAleese at a suite in an upmarket Italian hotel cost more than €3,100.

Fine Gael leader Enda Kenny was also put up in a luxury room in the Rome hotel at a cost of €1,200 per night, documents obtained for my new book Snouts in the Trough have revealed.

The bills were part of more than €21,000 spent on just a single night of accommodation at the five-star Grand Hotel De La Minerve for the Pope’s funeral back in 2005.

Also part of the entourage was Minister Mary Harney and the former Taoiseach Bertie Ahern, who each ran up their own bumper bills.

The final tally for the night’s accommodation, newspapers, a meeting room and a hairdresser came to a grand total of €21,525.64

The original bill had been released to me in a heavily redacted form as part of a Freedom of Information request concerning Mary Harney. It showed first off that a deluxe room for Ms Harney had cost €1,200 and another €765 was spent on a room for her private secretary.

All of the other names had been blacked out. Not surprisingly, I was keen to find out just who was deemed sufficiently important for a room costing €3,198.

Listed under the name Martin McAleese, it was – as I suspected – booked on behalf of the President, whose overseas spending details are all exempt from Freedom of Information legislation (something that has to be looked at).

The president’s office will not discuss anything in relation to overseas travel by McAleese and her spokesman Wally Young simply said: “No comment.”

Mr Young was also part of the delegation that travelled to Rome and his room is listed as having cost €740.

Another guest that night was Fine Gael leader Enda Kenny, who was a special guest of the government, and for whom a deluxe room was booked.

He was incorrectly listed on the bill as Mrs Enda Kenny.

His spokesman said: “Enda Kenny, as leader of the opposition, was invited by the President of Ireland to be part of a state delegation visiting Rome … he accepted the invitation. He had no involvement in any of the arrangements in relation to the visit.”

(Perhaps this is one of the reasons Fine Gael were so unwilling to criticise overseas travel arrangements last year at the height of the O’Donoghue controversy)

A junior suite for the then-Taoiseach Bertie Ahern was also booked and cost €1,650.

The delegation travelled by government jet from Dublin on 7 April 2005 and returned to Ireland the following day, logbooks from the Department of Defence show.

source http://www.kenfoxe.com/2010/09/the-e21500-hotel-bill-mary-mcaleeses-e3198-room/

Comment :

There is a book by Ken Foxe, (Public Affairs Correspondent of The Sunday Tribune) about political expenses called Snouts in the Trough which is published by Gill & Macmillan and it well worth the read, since it was published February 2009
A good many more chapters could be added I’m afraid

As I said in previous postings it’s all about living it up at the taxpayer’s expense

Every one of these leaches needs to get a reality check and be brought back down to the planet Ba-NAMA land the financial wasteland we the ordinary citizens now have to live in. There is definitely a case of preach austerity to the masses and live it up with the political élite .Now a certain CJH comes to mind !

Remember This?

Gold going Parabolic

We Still Buy Gold

Image by moriza via Flickr

Yesterday I was in Bray and I came across a tiny shop with a man outside and he was buying gold yes any old gold “We buy you old gold jewelry” I asked if he would buy old gold teeth and he assured me he would .This got me thinking about gold and I now have an article I would like to share with you all and a warning.

The old Wall Street saying when everybody else is buying you should be selling!

But one thing is for sure never follow a Parabolic curve.

I say again Never! So what is a parabolic curve

So pay heed to this next article I found here

Link  http://www.financialsense.com/contributors/ned-schmidt/gold-thoughts-09-28-2010


Parabolic curves Defy financial gravity, for a short time. Ultimately, financial gravity regains control, causing speculators to crash. Margin calls can be stronger than any widely accepted fundamentals.

Parabolic curves work just the opposite of the way nature intended. When we toss a ball into the air, the momentum of that ball slows until gravity becomes the dominant force. The ball then falls to the earth. In a parabolic move, the “ball” actually rises faster as it rises. The slope of the curve becomes steeper. It does so until the speculators are exhausted, and then it falls to earth.

The penalty phase of a parabolic curve is not enjoyable. When the end arrives, and they all do end, the discomfort can be down to 40-60% of the high achieved. Some may actually exceed that depending on the nature of the speculation. Gold, with much of it held in strong hands, may only decline 30-50% from the high.



A  whistle  stop tour in Co. Wicklow was organised by Labour TD Liz McManus
for  her  colleague  Mary Upton TD, Labour’s Spokesperson for Arts, Sport &
Tourism,  to  ensure  that the arts in Wicklow are fully supported into the

“We  can be all proud of the achievements of the Tinahely Courthouse Centre
and  the  Mermaid  Theatre  in  Bray and I was very keen that Mary Upton TD
would  see  for  herself  the  huge provision of arts in Co. Wicklow”, said
Deputy Liz McManus.

“I  have  also  received  many  emails from local constituents who are very
concerned  that  funding  for  the  Arts will be cut in the next Budget and
recently  had recent meetings with both the Mermaid Arts Centre in Bray and
the  Courthouse  Arts  Centre  in  Tinahely  in  relation  to  this  issue.
Unfortunately  Arts and Culture is often seen as an easy target for cuts in
straitened economic times.

“I  was  delighted that the Labour Spokesperson for the Arts, Mary Upton TD
agreed  to  come  to  Co.  Wicklow to visit both centres.  We met with Nora
Hickey  and  Fergus  Hannigan in the Mermaid Arts Centre and they expressed
their  views  and concerns to us.  We then travelled down to Tinahely where
we met Frank Gallagher and Shelley Hayes in the Courthouse Arts Centre.

“We also had an opportunity to drop into Avondale House in Rathdrum as part
of  the  tour as this is a major tourist attraction in Co. Wicklow and Mary
was  very  interested  in  Avondale  House  as  she is also Spokesperson on

“I  was  very happy that I had the opportunity to visit both Art Centres in
Bray and Tinahely and I promise that I will continue to pursue the Minister
for  Arts,  Sport  &  Tourism  to ensure that existing levels of funding is
maintained  and to push for additional new funding for the Arts in the next
Budget”, said Deputy Mary Upton.

… ends …
Liz McManus

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