What is truth?

Archive for the ‘Banking’ Category

Drip ,Drip Lies and more lies from Cowen and lenihan

Even by the standards of the global banking collapse, Anglo Irish Bank stands out. From a loan book of about 75 billion Euros when the government took over in 2009, Anglo Irish says that it has only about 12 billion Euros in loans that it classifies as performing. The bank is expected to transfer 36 billion Euros in troubled loans to the asset management agency — about half its existing loans.
source http://www.nytimes.com/2010/09/01/business/global/01anglo.html?pagewanted=2&_r=1&partner=rss&emc=rssSo the question is if you have at least 75 billion of loans and only 12 billion are “performing” that leaves 63 billion not “performing” so you have a loss of 63 billion
And that is just from the figures that have leaked out from Anglo Irish Bank and what about the other banks Allied Irish and Bank of Ireland add another 25 to 30 billion that is just the beginning because as the recession bites we will have mortgage defaults all over the place causing more drops in asset values, get my drift?
Lenihan and Cowen are lying and their cronies are spinning a web of deceit with every press statement they come out with.
something must be done and done fast, if we are to save what is left of our sovereignty

Mr. Aynsley and the greens playing to the cameras


Mr. Aynsley of Anglo Irish Bank last night hit out at the Green Party’s call for a wind-down of the nationalized lender.
He would wouldn’t he! Nobody likes to have to leave a party in full swing! And he is having a ball at the expense of the Irish taxpayers sitting on a nice fat salary and pension with no pressure to deliver profits.
Disastrous results is the new norm that is expected from his boss the Minister of Finance Brian Lenihan who is an expert at getting his figures wrong .
Any other CEO would be fired on the spot
I would like to know why the greens have now decided to jump ship as it were. with Anglo chief executive Mike Aynsley coming out yesterday warning of “horrendous” results on the way do they know something else that is hidden from the rest of us?
Mr. Aynsley was scathing in his response to the Greens’ comments, saying it was “difficult to understand” “While some of the information is commercially sensitive,(another way of saying we won’t tell you everything least of all the real truth) we are more than willing to sit down with interested parties and take them through it,” he said. “If the Green Party’s Finance spokesman is interested in getting an informed perspective he is more than welcome to meet us,”
Well Mr. Aynsley I’m an interested party along with the rest of the Irish public.
Does your invitation extend to the citizens that have to pay your salary?
No is the answer here again here is some more code
Sources in the bank stressed that it would be “no surprise” if the European Commission imposed some limitations on Anglo’s so-called ‘good bank’
In other words the EU has major doubts about this half-baked idea to Split the bank up
I believe it is an attempt by the boys to dump all the toxic crap onto to the taxpayers of the country and keep themselves in good jobs and run with the choice assets.
In other words good old “asset stripping “to the tune of 10,000,000,000:00 Billion euro
We the public have been lied to from the outset by Brian Lenihan who claimed that the whole Anglo bailout would cost 4.5 billion but so far we are looking at a minimum of 36,000,000,000:00 billion that we know of, but it could be a lot more maybe up to 50,000,000,000:00
The rising cost of rescuing Anglo was partly responsible for a surge in Irish bond yields last week with interest rates reaching highs of 5.9pc.
Another interesting point made yesterday by Minster Ahern was his statement that
“There was no political difficulty with the Greens and indeed Fine Gael as he claimed they were all on board in accepting the governments stated objective for Anglo Irish Bank
So voting for Fine Gael would be a vote to continue the same bailout madness to the top developers and bank fraudsters still sitting on the boards of the corrupt banks.
Now I see why Edna Kenny was so at home, as he crewed around the fairways of the K-club.
Why he is amongst friends and you always look after your friends in the political world .

Cutting Ireland’s Rating

by Reggie Middleton
So, S&P finally gets around to Cutting Ireland’s Rating on the Cost of Bank Support, as reported by CNBC:
Ireland’s financial headache worsened on Wednesday after Standard & Poor’s cut its credit rating in a move criticized by the country’s debt management agency.
The premium investors demand to hold Ireland’s 10-year bonds over German bunds has been steadily widening in the past few weeks and remained elevated at 327 basis points on Wednesday.
The spread finished at 330 bps on Tuesday, its highest level since the Greek financial crisis broke in May.
Brenda Kelly, an analyst at CMC Markets, said she expected Irish borrowing costs to climb on the back of S&P’s move.
“I think we are going to have to an awful lot more in interest payments,” she said.
Although Ireland has raised virtually all of the 20 billion euros of long-term debt targeted for 2010, S&P’s move may make it more difficult for the country’s banks to extend the maturity of their funding later this year and eventually wean themselves off a state guarantee on their debt.
S&P cut Ireland’s long-term rating by one notch to ‘AA-’, the fourth highest investment grade, and assigned the country a negative outlook late on Tuesday saying the cost to the government of supporting the financial sector had increased significantly.
Rating agencies have been steadily hacking away at Ireland’s credit rating and S&P’s is now on a par with Fitch and one notch below Moody’s, which cut its rating to Aa2 last month.
S&P said it expects Ireland will need to spend 90 billion euros to support its banking system, up from its prior estimate of 80 billion euros including capital used to improve the solvency of financial institutions and losses taken from loans the government acquired from banks.
Ireland’s budget deficit ballooned to 14 percent of gross domestic product, the highest in Europe, last year due to the cost of propping up nationalized lender Anglo Irish ANGIB.UL and it could climb higher if Dublin injects an additional 10.05 billion euros into the bank…
I’m not going to say I told you so, but I did throw some pretty strong hints…
On April 29th, I was quite blatant in stating “Beware of the Potential Irish Ponzi Scheme!”, urging my susbscribers to review the Irish Bank Strategy Note and the Ireland public finances projections that I made available earlier that month. You see, unlike many of the pundits in Europe who state that Ireland has moved beyond the worst of its problems and is an example of how austerity should work, I believe that Ireland is in very, very big trouble and I outlined the reasoning behind such in my very first posts on the Pan-European Sovereign Debt Crisis.

At the very beginning of the year, I visually illustrated how bad off Ireland was, with considerably more that 6% of its GDP being mired in bank NPAs (non-performing assets). This number is quite conservative, for my research team only canvassed the larger banks in Ireland – you can rest assured that the smaller ones contain a similar (if not greater) proportion of NPAs to total assets. Add to this the fact that these banks are probably overstating assets and understating liabilities and you can probably throw another 150 basis points on top of the figures above and still be a tad bit conservative.
As a matter of fact, I went further into the topic in mid-April with Many Institutions Believe Ireland To Be A Model of Austerity Implementation But the Facts Beg to Differ! where I showed that Ireland is heavily leveraged into the problems of the PIIGS group faced. A picture (and/or graph is worth a thousand words! From the afore-linked post…
So if Ireland is really that bad off, what’s up with that tall stalk next to it in the bank NPA chart at the beginning of the post? Oh, those are the guys (and gals) who lent Ireland all of that money, and Ireland’s issues are probably a significant portion of those NPAs you see towering over that of Ireland. I am not picking on Ireland and the UK, for much of Europe suffers from similar anathema,.
It is not as if no one could see the Euro-bank issues coming. In January of 2009, I explained to readers that the real estate bust in Spain could not be avoided by the banks and there will be a time when the piper comes a callin’ This, of course, will be subsidized by the Spanish state,. This didn’t just start with Greece,
So what does it all mean?
Well, from my point of view, things rarely happen in a vacuum. Many European nations are over leveraged, overbanked, highly indebted, social powder kegs literally and economically sitting right next to each other. Lord forbid someone inadvertently lights a match! Whether that match is of financial or economic origin a very unpleasant domino effect will ensure.

Reggie’s analyzes is spot on and a must read for all serious citizens who want to get the real facts on our countries financial situation and not the spin coming from an increasingly out of touch government

Michael Collins would take out his revolver……………..


The German economy is poised to grow by about 3% this year, after growing at its fastest rate for more than 20 years during the April-to-June quarter.
That spurt has led the Bundesbank central bank to raise its growth estimate from its original 1.9%.
The bank said conditions for Europe’s biggest economy remained favourable and “the economic upward movement should continue in the second half”.
But it said risks from “developments on international financial markets” exist.

These risks are of course that the other PIGS countries might stop helping to bail out German banks that have after all lent billions into their risky banks
These PIGS might just say enough is enough and we will not put up with any more dictates on austerity measures coming from the German Bundesbank
We the Irish might wake up and tell them to take a running jump, after all the Irish taxpayers were not responsible for private banks and their bad boardroom gambling investments
In the USA this year the FED has allowed 103 banks to go bankrupt whilst here in Ireland the economic terrorists Cowen and Lenihan have decided to bail their pals and the golden circle in Anglo Irish Bank out by socializing the private debts of Developers and German bondholders (Deutsche Bank)
So of course Germany is doing great we have just given them 22.5 billion back of the bad gambling debts they made on Anglo Irish Bank and we are also going to give them back another 10 billion
I suspect we will end up giving them back 70 odd billion
We are the dummies that were conned into paying their bad debts by Cowen and lenihan
Who told the Irish people we had engaged in irrational exuberance when in fact the Germans
Gave vast amounts of money (2.5 trillion) to corrupt bankers and with the help of incompetent government ministers (Cowen, Minster of Finance) here in Ireland
The Germans did not carry out any real due diligence and would have been expected to suffer their own losses were it not for the fact that they control the ECB Bank and thus can dictate to us
With the gutless Cowen and his swatter cabinet colleagues we are no longer in control of our own destiny as they have keeled over and sold us out ,they have betrayed the trust of the voters and for the next 2 generations I am afraid we are going to have to pay the German piper
Ironically today the anniversary of the death of Michael Collins we have Lenihan poring political garble to the chosen few that still believe a word he says
I think if Michael Collins was still alive today he would take out his revolver and shoot this Gobs***
and call for a new republic

These stooges obviously don’t read the papers

More proof that the Banks are in fact calling to tune with regards to the running of our country
Cowen and Lenihan have swallowed hook line and sinker the notion from the other Bank Lords that no Irish Bank must be allowed to fail because of the damage that will be done to the financial viability of our nation state
Wake up lads nobody would touch us with a mile long barge pole!
These stooges obviously don’t read the papers and they sure don’t take sensible advice even when the pay through the nose for it.
Look at this article U.S. Bank Failures In 2010 Surpass 100
If the US the center of capitalism in the world can close down 103 Banks this year alone we in Ireland can let a corrupt private Bank go down the Toxic Toilet it has made for itself!
It’s like telling the Captain of the Titanic there is an Iceberg dead ahead and there response is
The Titanic is unsinkable according to the instruction manual and so we should stay the course

Why is NAMA calming that it was not a public authority?

EU Commissioner’s preliminary decision on NAMA
Who is controlling NAMA?
Why is NAMA calming that it was not a public authority?
Is it in order to be able to escape having to supply information on its activities to the public via Freedom of information act?
see what the EU Commissioner’s preliminary decision is 35189551-NAMA-Preliminary-Decision-Reply
to recap this is what NAMA is suposed to be according to the finance Minster
10. NAMA is established as a separate corporate body with a board appointed by the
Minister for Finance under the control of the NTMA. NAMA as a corporate entity will
arrange and supervise the identification of property-backed loans on the books of the
qualifying financial institutions in the State but will delegate under its control the
purchase and management of those loans to a separately created special purpose
vehicle (the “SPV”)2. 95% of the consideration for the purchase of the loans will be
financed by securities guaranteed by the government and the remainder with non-
State guaranteed debt.

11. The SPV will be a separate legal entity with a subscribed capital of !100 million
with private investors owning 51% of the equity and the remainder owned by NAMA.
Given that the SPV is 95% funded by the State however, NAMA representatives on
the board of the SPV have a veto over all decisions of the SPV board that could
affect NAMA or the Government.

12. The SPV will seek to make a profit through the management of the acquired
assets during the lifetime of NAMA, however given that the SPV debt will be
guaranteed by the Government the distribution of the SPV profits to the private
shareholders will be capped and the remainder will accrue to the State.3 The details
of the distribution of the SPV profits are not publicly available.

Now who is in control of this SPC?
Why the investment arms of the three major Irish financial institutions (IL&P, BOI, AIB) thats who! The very vehicle that is there to rescue their own corrupt companies.link here

This is outrageous! Lenihian and his cronies has pulled a con on us all,
The same gangsters that have caused this whole financial collapse are now running NAMA.(The Bankrupt Banks ,have effectively taken control of 80 billion worth of assets for 100 million investment )the barging of the millennium
And it should come as no surprise to see the NAMA board try now to extract themselves from having to answer the hard questions from the probing general public through the Freedom of information act
When will the Irish people rise up and stop this fraud?

Central Bank report for Quarter 2

Just more lies?
Central Bank report for Quarter 2, NAMA’s resident and non-resident borrowers
namawinelake :
source http://namawinelake.wordpress.com/2010/07/31/central-bank-report-for-quarter-2-nama%e2%80%99s-resident-and-non-resident-borrowers/

The wide-ranging quarterly Central Bank report and forecast published yesterday contains some interesting nuggets on NAMA and Irish property in general. On NAMA, it publishes information on the first tranche which hasn’t been publicly seen before, namely a split of the first tranche loans between resident and non-resident borrowers and also gives the provision the banks held for the loans transferred. The information is on page 39 of the report and is summarised here.

Of note is that the writedown by NAMA on the loans (49.6% in total) comprises a writedown by the banks themselves (23.7%) and NAMA’s additional write-down (26.9%) – given that Anglo’s accounts were published on 31st March, 2010 and INBS’s accounts were published on 9th April, 2010 and they each contained the government’s recapitalisations announced on 30th March, 2010, it is indeed amazing that they were showing their provisions at such a low level – was it a case that the accounts were produced many months earlier and only amended for the government’s injections of capital – wasn’t there any attempt to show the imminent NAMA haircuts? As to the split between resident and non-resident, I’m not sure how much can be deduced. For information the following were reported by the media (not confirmed by NAMA and indeed Paddy McKillen’s spokeswoman has denied that Paddy was in tranche 1) as being the Top 10 developers in the first tranche – spot the non-residents!
Liam Carroll
Bernard McNamara
Sean Mulryan
Derek Quinlan
Paddy McKillen
Treasury Holdings
Michael O’Flynn
Joe O’Reilly
Gerry Gannon
Gerry Barrett
As to what the Central Bank say in their report on page 39 about the write-downs with respect to residents and non-residents they are talking rubbish – the figures show that the resident loans had greater write-downs at both the banks and at NAMA.

Tag Cloud