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Posts tagged ‘Alan Dukes’

What is going on in NAMA and Anglo. It is truly shocking!

Sent in to us to-day

When an Irish company is placed in liquidation, Irish com-pany law requires the directors of the company to produce a so-called ―statement of affairs‖ of the company within 21 days. This SoA sets out the financial position of the company at the date of liquidation and is in-tended to assist creditors in understanding their prospects for recovering any debt.

 

All standard so far, and this type of arrangement appears to exist in most advanced econo-mies, and Ireland certainly claims to be such an ―advanced economy‖

Yet , six months (that‘s 180 days) after the IBRC liquidation, and there was no sign of any SoA. A litigant in a case against IBRC, who would potentially become a creditor, sought the SoA without success. The liti-gant is hotelier Johnny Moran who is locked in a bitter dispute with IBRC on foot of the ap-pointment of receivers to his assets. With no sign of the SoA, Johnny went to the courts to force the directors – techni-cally, the members of the board which includes the chairman – to produce the SoA. The case was scheduled to be heard on 22nd July 2013, a Monday.

 

On the preceding Friday 19th July, 2013, Johnny served the former IBRC board members with summonses. There was what should be a memorable incident outside the Institute of International and European Affairs on North Great Geor-ges Street, when Johnny per-sonally placed the summons in the hands of Alan Dukes, for-mer chairman of Anglo/IBRC and former finance minister who should be more than famil-iar with requirements under company law. This personal service took place at 3pm.

Less than two hours after Alan Dukes was served with the summons, Minister for Finance Michael Noonan rushed out a letter in which he granted the former IBRC board members a waiver on their obligations to produce a SoA. Remember this was 180 days after the SoA was in fact due, and it was the first waiver provided by the Minis-ter. You can view the letter here, the list of recipients and their addresses is here though we have redacted some of the address details, the publication of which might give rise to Data Protection issues.

 

At the court hearing on the following Monday morning 22nd July 2013, Ms Justice Mary Laf-foy was presiding in the High Court where she heard Johnny‘s motions to compel the production of the SoA. She adjourned the matter ‗til after lunch when she decided that the Minister‘s letter prevented her taking any action. There is no written judgment in the matter, but those who attended the hearing report her saying she ―could not get involved because the Minister was in-volved‖, which didn‘t seem a satisfactory state of affairs in an ―advanced economy‖ where there is separation between the executive (the Government) and the judiciary. A coinciden-tal footnote to this matter was the appointment/promotion of Judge Laffoy to the Supreme Court three days later on 25th July 2013.

It was only a fortnight after the court hearing that Minister Noonan signed into law an Order pursuant to the IBRC Act 2013 which waived the obligations of the former IBRC board members, and gave them until 30th September 2013 to produce the SoA. That Order, dated 6th August 2013, is avail-able here, but it goes further than just granting an extension, it allows the SoA to conceal the names of the creditors………………………

Full article in PDF doc here: NAMA

Banks will need another €25bn

Banks will need another €25bn

Stress tests on crippled lenders reveal black hole even bigger than expected !

By DANIEL McCONNELL Chief Reporter Exclusive

Sunday March 13 2011

Ireland‘s financial future has been dealt a massive blow as a further black hole of up to €25bn in the Irish banks has emerged as part of the Government’s stress testing.

Senior government sources have confirmed to this newspaper that the stress-testing process will show that the state of the banks’ balance sheets is “considerably worse” than previously thought.

It has emerged that on top of the €10bn capitalisation deferred by former Finance Minister Brian Lenihan last month, losses at the banks mean that a further injection of between €15bn and €25bn could now be needed.

The results of the rigorous stress-testing process, designed to restore confidence in the banking system, are to be presented to new Finance Minister Michael Noonan next week.

News that Ireland will need substantially more money from the IMF/EU to address the crisis in the banks is a blow to Taoiseach Enda Kenny‘s hopes to get a better deal at the EU summit later this month.

Before entering government, both Fine Gael and Labour committed to putting the deferred €10bn into the banks, but it is now clear the amount needed will be at least double that.

“The additional amount is certainly higher than €10bn but is lower than the huge figures being spoken about in Europe. But inevitably it does mean further pain for the taxpayer,” a senior government source told this newspaper.

The position is so serious that at least one of the main banks cannot source funding on the international capital markets and is relying on the Central Bank of Ireland and the European Central Bank for funding.

Under the terms of last November’s €85bn IMF/EU deal, €35bn of that was allocated for capitalisation of the banks. The initial €10bn was due to go in last month but was deferred because Mr Lenihan said he “had no mandate” to carry out that transfer. The remaining €25bn was kept as a contingency fund to be used only as a last resort.

However, given the deeper level of losses on the balance sheets of the banks as revealed by the stress testing, it now seems the entirety of that contingency fund could be used up to fill the ever-increasing hole in the Irish banks.

Writing today in the Sunday Independent, UCD economist Colm McCarthy said the plan under the IMF/EU deal to recapitalise the banks could not be financed within the resources available.

“The programme (for government) does mention the need to cap the exchequer cost of the bank rescue, which is a roundabout way of acknowledging that additional financing in some form will be needed,” he said.

Given the €150bn-plus line of funding given by the ECB to Ireland to date, any need for further capital will severely damage Taoiseach Enda Kenny’s position to obtain more favourable terms in terms of the bailout at the EU summit in two weeks’ time.

By drawing down on the additional funds, Ireland’s debt burden will also increase to above 120 per cent of GDP, which is incredibly high.

Senior government sources said this weekend that while the stress testing was not complete, early estimates were that the state of the banks was once again worse than feared.

“The hope was that this stress-testing process would not show any further losses. Unfortunately, that is not the case, there is worse still to come,” the source said.

The gravity of the news means there are growing fears that Anglo Irish Bank chairman Alan Dukes‘s prediction that a further €40bn — on top of the €10bn set aside — could be needed to meet the banks’ needs may not be far off.

Two weeks ago, Central Bank governor Patrick Honohan said he would be “very disappointed” if the entire contingency fund would be needed, as it now appears.

Mr Lenihan said the figures being talked about appear speculative but his deferral of the capitalisation at the end of February would enable the new Government to boost the banks’ balance sheets in one go, once stress testing was complete.

– DANIEL McCONNELL Chief Reporter Exclusive

 

Comment:
So after our third stress test the Government now finds out what?No surprises here as Allen Dukes said on the Vincent Browne a few weeks ago we will be needing at least 40 odd billion just for the unrealized losses from the banks that was still to be announced in the coming months (see video clip )
http://www.tv3.ie/videos.php?video=32269&locID=1.65.169
The Banks are still hiding their derivative losses of approx 100 billion in the IFSC ,when are we going to get the whole picture? after stress test 6 ??????? I suspect that Allied Irish Bank is now finished and Bank of Ireland will more than likely now be fully nationalized if not shut down
there is a case now for a new National commercial bank and let the rest just go  the Taxpayers of this country just cannot keep powering billions into these Toxic Banks. They are finished !

Impending crisis in Irish banking sector with arrival of IMF/ECB/EU teams?

by

namawinelake

Whenever I hear the words “routine” and “IMF” in the same sentence, my attention is pricked because I remember Minister for Finance, Brian Lenihan’s denials last October, that his first trip to the IMF in Washington since he was appointed to the finance ministry in May 2008, was anything other than “routine”.
 
Remember his dark warnings to journalists back then – “I really do not want to see a headline in Ireland saying ‘Minister meets IMF’ at present”. No more can be read into it than that [routine meeting]. I think that’s very important, and I’d like that stated on the record and part of the story.” Set against the context of what transpired the following month with the actual IMF bailout, who wouldn’t be suspicious when they hear claims of matters being “routine” when the IMF is concerned.
 
The reason this is relevant now is that we hear from the Irish Times today that the IMF is due in Ireland “this week” for what is described by a Central Bank spokesperson as a “routine” meeting. However only last week at the weekly IMF press briefing, it was said that “well, the elections are later this month on the 25th, and we will have the formal review mission for Ireland. I think the first and second reviews might be combined and take place just after that”. What has accelerated and brought forward this present meeting? Why, it’s the banks of course.
 
So what’s the latest crisis? Deposits are still flying out the door and it is likely that between the ECB and the Central Bank of Ireland there is close to €190bn of emergency liquidity assistance in Irish banks at the end of January 2011 (we’ll find out this Friday morning when the CBI releases data). The PCAR and PLAR (PCAR IV by my counting) reviews have been ongoing for some weeks with Barclays Capital, the Boston Consulting Group and Blackrock doing the digging this time around, being overseen by Central Bank governor Patrick Honohan who gave us an interim glimpse into progress a couple of weeks ago when he said that the loan losses would be a “little larger” than expected. Yesterday government appointee to the role of Anglo Irish Bank chairman, Alan Dukes claimed that the banks would need €50bn of funds on top of the €46bn so far injected. This €50bn is understood to include the €35bn banking element of the IMF/EU/ECB/bilateral bailout. Alan Dukes’ assessment of funding needs is at odds with our Central Bank governor who thinks that only €10bn of the €35bn fund available from the bailout will in fact be needed. Bank of Ireland has been flouncing around in what increasingly look like desperate attempts to avoid majority state control at the end of February, 2011 and is faced with a €214m preference share dividend payment in 11 days. The sale of EBS seems to be stalling. AIB is cutting it fine with finalizing the sale of Bank Zachodni WBK, only after which will the State convert the Convertible Non Voting shares into equity shares (and there seems to be a deadline for that of 28th February). NAMA has stalled on the sub-€20m AIB/BoI loan acquisitions with the NAMA Bill (which would give effect to an accelerated valuation methodology) shelved until after the general election, and even then it may require EC approval. And of course NAMA itself might find itself in jeopardy if the Supreme Court judges aspects of its operation unconstitutional today. Yes there is quite a lot going on at the moment in the banking sector.
 
But the two-headed monster hasn’t gone away – our banks are still starved of liquidity and the outlook for solvency is uncertain. So I am not really surprised at the arrival of an EU/ECB/IMF delegation to review matters, and I think we might see some major new initiatives flowing from events this week. These might include an extension to the deadline for banks fulfilling capital requirements, changes to the capital requirements (injections needn’t be in “equity shares” for example), attempts to put brakes on the ECB/CBI emergency liquidity measures and who know, perhaps even initiatives on bondholders, including senior bondholders. “Routine”? I don’t think so.

source :http://wp.me/pNlCf-11U

Unbelievable, mindboggling depressing !

Ireland needs a second state-owned ‘bad bank’, the chairman of Anglo Irish Bank said today.

Ireland needs a second state-owned bad bank, the chairman of Anglo Irish Bank said today.

Alan Dukes was speaking to the Chartered Accountants Leinster Society this afternoon.

Mr Dukes said even after NAMA had finished its work, the banks would still be left with distressed assets. He conceded it was possible that Anglo Irish Bank could be used to deal with some of these loans.

Last month the Government increased the threshold for loans going to NAMA from €5m to above €20m. This meant that loans of €7 billion originally destined for NAMA will now remain within the two big banks.

Files being prepared for DPP – Lenihan

Meanwhile, Finance Minister Brian Lenihan has told the Dáil that files are being prepared by the gardaí for submission to the Director of Public Prosecutions, arising from their investigation into reckless lending by the banks. He said reckless lending was the core problem in the banks.

The Minister said he had previously stated that there had been serious issues of corporate governance in the banks and that both the gardaí and the Office of the Director of Corporate Enforcement had been investigating these.

Second day of the Dáil economy debate

Earlier Fine Gael‘s Communications and Energy Spokesman, Leo Varadkar, told the Dáil that the top bankers in the country must be arrested and prosecuted, as they had done more damage to the economy than the IRA.

He said the bond markets would respond positively if they saw that Ireland did not protect white collar criminals.

source http://www.rte.ie/news/2010/1028/banks-business.html

Comment:

Dukes, should be the first to go to Jail along with the gangsters in the Dail and then the bank directors

This is getting to be more and more like a Monty Python Episode every day

Unbelievable, mindboggling depressing !

Irish Govt Appoints Alan Dukes as Anglo Irish Bank Chairman

 


ALAN DUKES (63)
who joined the Board in December 2008, is a Director and Public Affairs Consultant of Wilson Hartnell Public Relations Limited. He has served as Minister for various portfolios including Finance and Justice and is a former leader of Fine Gael.  He was Director General of the Institute of European Affairs from 2003 to 2007.

link http://online.wsj.com/article/BT-CO-20100312-703533.html?mod=WSJ_World_MIDDLEHeadlinesEurope
His qualifications are what exactly?

This political dinosaur has been around for a long time and he has been feeding off the lush planes of Taxpayers land

This guy is an old and I mean very old party apparatchik and is well versed in the game of self preservation and self promotion. Mr. Dukes is no more qualified to run this Toxic Toilet than the janitor in our local public toilets.

Already in receipt of various payments from the public purses he will now enjoy financial security for the rest of his life and all thanks to us the taxpayers who have carried his sorry ass for most of his life

How is placing this ancient “public servant” (Leach) at the top of the Board of the Anglo Irish Bank toxic toilet helping the Irish people ?

Listening to the 1 o clock news I heard this man try to justify his new position and also try to tell the Irish public that he could rescue this corrupt and damaged Bank

This is a complete waste of Taxpayers’ money and is going to become a pasture for X politicians waiting to drop dead!

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