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Archive for the ‘accounting gimmickry’ Category

Developers score €200,000 salaries from NAMA

Developers score €200,000 salaries from NAMA

 Some of the country’s most indebted developers – some of whom now owe the state billions after their debts were taken on by the National Asset Management Agency – have agreed new deals with NAMA which will see the agency invest in their new dealings – and pay them wages of up to €200,000 a year.

The deals, reported in today’s Sunday Times, mean that the developers – who owe between €1bn and €3bn – have been told they can pay themselves the bumper salaries as part of an arrangement which will see the agency split the profits on the sale or trading-out of some assets, once the developers’ performances exceed certain targets.

The creditors are also to be allowed to keep their homes if the targets are met – but if such targets are not met, NAMA reserves the right to repossess their family homes and sell them off.

The developers involved have also been told to cash in their pensions plans, which contain millions stockpiled in retirement funds, to be used as working capital for their businesses.

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Developers involved include Treasury Holdings owners Johnny Ronan and Richard Barrett, Liam Carroll, Seán Mulryan of Ballymore, Bernard McNamara and Joe O’Reilly.

A NAMA spokesman told the Sunday Times that the business plans submitted by the developers which required agency approval had run into thousands of pages in some cases, and that all had substantially reduced their office overhead expenses.

While the spokesman would not speculate on the individual salaries being paid to developers, he said they had seen their wages drop by between 50% and 75%.

Bank of Ireland and accounting gimmickry

Bank of Ireland announced that €2.1bn of formerly NAMA-bound loans would not be going to NAMA. Where are they going, if anywhere? Why are they not going to NAMA? Is this a further contraction in NAMA’s performing loan portfolio (BoI have had the best performing loans thus far evidenced by their top of class 36% average weighted haircuts on Tranches 1 and 2). It is interesting that the EU Decision on BoI’s future which was made in July 2010 has not yet been made public more than two months later. BoI emerged from yesterday’s statements as the only healthy NAMA Participating Institution in the sense that it doesn’t need additional capital. Has some jiggery pokery gone on with the €2.1bn of formerly NAMA-bound loans to enable BoI to meet its PCAR requirements?

Full article here http://namawinelake.wordpress.com/author/namawinelake/

German war reparations

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It took Germany 90 years to pay off 25 billion in war reparations for the First World War.
The US gulf will need 20$ Billion to clean it up .

Ireland is now been saddled with debts of 36.5 billion and that’s just Anglo Irish Bank plus the other banks another 14 billion a nice round 50,000,000,000:00
How long will it take for this little country to pay off this private debt?
Cowen and Lenihan will go down in history as the most incompetent politicians in Irish History and the leaders of the opposition parties coming in close behind.
This country needs competent men and woman in the dail and not selfish leaches sucking our country dry.

Anglo Irish Bank is dragging us all down!

 
Wednesday, September 29 · 12:30pm – 2:30pm

Location St Stephen’s Green


Created By

More Info The Right To Work Campaign will be joining the Irish Trade Union Congress protest at the Dail on Wed September 29th- we will be marching from Anglo Irish Bank at 12 noon and then joining the Congress protest at the Dail at 12.30pm.Sept 29th is the 1st day back for the Dail and is also the 2nd anniversary of the banking guarantee.The 23 Billion we gave Anglo Irish Bank is enough to employ everyone on the Live Register for 3 years on 33,000 a year!Get this government out!
No more Anglo Irish Bailouts!
We want jobs and services!
Stop the Cuts!For leaflets and posters contact 0872604143Let’s make this a real focus for all the anger out there against this incompetent government!

 

Comment:

 As a non-aligned and  advocate for the middle ground and free enterprise I strongly believe that the support the government is giving this corrupt and clearly bankrupt private Bank in not the responsibility of the Irish Taxpayers and I also firmly believe that the Irish government has created a fatal disaster for the country by bailing out their friends .One has to now ask questions why this disastrous course was ever taken .This stinks to high heaven and fraud is written all over this action by lenihan and Cowen  .

This must stop now and criminal charges must be brought against the architects of this national disaster.

The Full story has still to come out from the Allied Irish Banks and Bank of Ireland again I call on them to come clean on their derivatives positions.

I intend to go to this demonstration to-morrow as

 I believe we in the middle ground should be seen and on the ground and we need to become vocal otherwise we will be left behind nobody else will fight our cause and our cause is the peoples cause.

Now more than ever we need to stand united against this blatant attack on our democracy by the political elite and their cronies.

PS 

Anybody in Wicklow looking for a lift contact me at e-mail provided before 10.30  29.09.2010

 

 

 

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Hangover for Irish Banks

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MONDAY’S jump in banking stocks was followed by a hangover yesterday as the country’s lenders pared most of the gains posted in the session.

Bank of Ireland fell 4pc to 69c after Standard & Poor’s (S&P) cut its outlook to “negative” from “stable” and warned that the lender faces “considerable challenges” restoring its credit profile as the Irish economy recovers slowly.

“Our view is that the Irish economy is likely to recover only quite slowly, with household finances remaining stretched, asset prices unlikely to start appreciating materially for a couple of years and credit demand remaining muted for many years,” S&P said in a gloomy forecast.

Allied Irish Banks, fresh from celebrating the sale of its stake in Bank Zachodni, tumbled 4.6pc to 75c as ING Group said the bank “is not out of the woods yet”, following the sale and is still “likely” to end up in majority state ownership.

Another stock feeling groggy yesterday was Norkom which tumbled 15.8pc to 80c, extending the previous session’s 24 decline following a profit warning.

CRH was another loser, slipping 1.9pc to €13.20 after the building materials company was downgraded to “neutral” from “outperform” at Credit Suisse by equity analyst Harry Goad. His target price is €14 per share.

The ISEQ ended the session down 20.44 points, or 0.7pc, to 2795.04 points. Elsewhere in Europe, stocks were little changed with the Stoxx Europe 600 Index close to a four-month high, as better-than-estimated US retail sales offset a selloff in utilities and a slump in German investor confidence.

Stocks initially rallied after a government report showed sales at US retailers climbed in August for a second consecutive month. Separate figures from the ZEW Centre for European Economic Research showed German investor confidence fell more than economists forecast to a 19-month low in September.

In the UK inflation unexpectedly exceeded the government’s 3pc limit for a sixth month in August; while a UK housing-market gauge fell more than economists expected in August to the lowest since May 2009, according to the Royal Institution of Chartered Surveyors.

Electricity companies RWE and E.ON dropped after brokers downgraded Germany’s largest utilities. Philips lost 3.9pc after the world’s biggest lighting company set new financial targets for the next five years. Gamesa Corporacion Tecnologica paced advancing shares amid takeover speculation.

ARM Holdings retreated 4pc after the company said a number of executives sold shares in the UK designer of semiconductors that power Apple’s iPhone.

Ladbrokes dropped 1.2pc after Goldman Sachs downgraded its recommendation on the bookie to “sell” from “neutral.”

– Thomas Molloy

Irish Independent

 

Comment:

This comes as no surprise to me as I have pointed out in previous posts the two main banks are from any normal booking keeping standards, they are both bankrupt

They are engaged in hiding enormous losses behind dioubious financial instruments called derivates as they are not going to disclose these losses

I believe they are trying to drip feed the markets over the next 3-5 years if they can get the time from the government or they will try to pass them off to NAMA

There is some credence to this method as NAMA is the ideal vehicle to do so through the Toxic toilet that is Anglo Irish Bank

Stay away from Irish  bank shares as I expect the State will eventually end up owing a majority holding of Allied Irish Bank and possibly a 49% stake holding of Bank of Ireland at best!

The FINANCE DUBLIN Irish Government Debt Clock

See the Republic of Ireland’s national debt mount up, a measure of the legacy the Irish Government is in the process of bequeathing to the children of Ireland:

                        

                          € 87,669,547,647

 

The FINANCE DUBLIN Irish Government Debt Clock was set at midnight on June 30th 2009, when it was €65.278 billion.

(25 August): S&P downgrade disputed by NTMA, but, the main problem – non banking bailout costs – remain

The most negative aspect of the S&P re-rating on August 24th 2010 is the ‘outlook negative’ aspect, rather than the actual rating, the aspect the NTMA focusses on in disputing the validity of the downgrade. Here’s what S&P say on this aspect: “The negative outlook reflects our view that the rating could be lowered again if–as a result of its support for the financial sector or due to a more sluggish economic recovery (emphasis added)–the government’s fiscal performance improves more slowly than we currently assume.”

“Conversely, the outlook could be revised to stable if the Irish government looks more likely to achieve its fiscal target for the underlying general government deficit of less than 3% of GDP by 2014, or if the banking sector stabilizes more quickly and at a lower fiscal cost to the government than we now think likely.”

As argued many times in this page, since the Finance Dublin Debt Clock was set up in July 2009, while the cost of the banking bailout is admittedly very serious, the much more serious issue is the excessive cost of the state in the economy, which currently sees the national debt as rising by some €18 billion a year. This compares with a estimated total net (once-off) cost of the banking bailout of €25 billion to €30 billion.

Continued emphasis on the (admittedly serious) cost of the banking bailout, Anglo-Irish bank etc., at the expense of focus on Ireland’s unsupportable current and capital spending Budget (now costing 5.35 per cent p.a. in the bond markets to fund) will continue to put Ireland’s credit rating unfavourably under the microscope.

As a close reading and assessment of S&P’s statement shows, a positive result could be achieved by a decision from the Irish Government that it will address the issue of Ireland’s deteriorating credit ratings head-on in the forthcoming Budget by going further than previously announced in cutting down the spending programmes for 2011, 2012, on capital and current account than the (now clearly inadequate) €3 billion it has previously signalled for the 2010 Budget – i.e. bringing forward its fiscal consolidation plan.

Such would be consistent with the principles enunciated by the Minister for Finance in his Beal na mBlath speech on August 22nd. Lenihan’s statement that “We know from the 1980s that unless businesses are confident about the Exchequer’s long term position, they will not create new jobs” shows that this awareness is there – and that policy framed to underpin business and household confidence is key to (a) recovery in tax revenues, which springs from expanded employment primarily, and (b) a stabilisation in the property market, upon which the financial cost of the banking bailout will crucially depend.

Comment

At the above rate we will be well over the  100,000,000,000 Billion  by Christmas so go and get your Christmas shopping now you might not be able to afford it at Christmas !

Any coming budget savings in the 2011 budget will go directly into the Anglo Irish Bank Black Hole and we will need another emergency budget sometime next year when we finally get this shower of gangsters out of government, but I fear the damage will be complete by then! They will by then have helped their pals get everything worth taking of shore and we the people will be left saddled with the bad debts  and all the bills  

Any announcements coming from Brian Clown or Brian Lenihan must be taken with a pinch of salt! the Twiddle Dum and Twiddle Dee politicians are the last people we should rely on for leadership, after nearly two years since the bank crises these two jokers are only now coming to the realization that a bailout of the toxic toilet Anglo Irish Bank wasn’t a great idea after all and the billions powered down that toxic toilet was better spent in retraining the enormous dole queues

Almost two years and 22.5 billions, Clown and Lenihan still cannot  tell the Irish people where this enormous amount of money went, specifically who got this money and why?

Why is it taking this long to say exactly how much has this Toxic toilet has  in bad debts? How many staff has been recruited to this toxic toilet since the financial crises started and why??

Since the announcement of a split of Anglo Irish are we now going to have double staff levels, a second management level, at double the costs, for the same totally discredited bankrupt bank?

Since the work lode will now presumably be less in one or the other good bank, bad bank can we the taxpayers expect a reduction a claw back of the pay rises given to this surplus staff now???

When are we going to see prosecutions of the directors of the banks who have effectively stolen from every citizen of this country? And when can we expect Clown and lenihan resign for the gross mishandling and incompetence of the economy? Since they have effectively destroyed our countries financial independence and with it our soverne independence, they are guilty of economic terrorism

Neither they, nor their cronies should be allowed to benefit in any shape or form from these crimes that includes running off into the sunset with enormous pensions.

it’s time for a change in Irish politics and we must start with a system change this means a constitutional change to make these people personally accountable for their actions whilst in the service of the citizens

Machholz

We don’t have an economic policy, it’s all just a big bluff

 

David Mc Williams is like a lonely voice of logic in the wilderness

The powers that be want shut of him and wish he up sticks and goes away!

The hard hitting questions and the overwhelming logic to his solutions speak for themselves

Every concerned citizen should read this latest article which exposes our present political elite and their lies

This country is in such need of a jolt of reality and Mr. David McWilliams should be congratulated on his dedication and persistence in bringing the real truth to the people of Ireland and I only hope he is not too late! Is the message getting true??

Machholz

 

When we get real, we will see that Anglo’s debts are likely to be in the region of €36bn — or roughly 50pc of its loan book of €72bn. As the bond market indicated yesterday, we are clearly running out of time, and contrary to the minister’s assurances, no one thinks the €25bn bailout of Anglo is “manageable”. This cavalier attitude to finance is frightening away proper investors. This is exactly how the Greek crisis started and we know how that ended.

The Government is bluffing with our future, and by extending the guarantee yesterday it is simply showing all the signs of panic, rather than firm financial management

By David Mc Williams

full article http://www.davidmcwilliams.ie/2010/09/08/we-dont-have-an-economic-policy-its-all-just-a-big-bluff

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