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Posts tagged ‘Anglo Irish Bank hidden loans controversy’

The Psychology of an Irish Meltdown

By TANA FRENCH
July 2013

Friso Gentsch/dpa, via Corbis

DUBLIN — FOR the past month, Ireland has been outraged by tapes of Anglo Irish Bank officials, back in 2008, discussing lying to the government about how big a loan they needed, and how they knew there was no chance that the loan would ever be repaid. That loan was the first domino in a sequence that ended with the whole Irish economy flat on its face.

It’s not the bankers’ actions that have outraged people — pretty much everyone had a fair idea that this was what had gone down. It’s the overpowering sense of amorality revealed on the recordings, which were released by the Irish Independent newspaper. The bankers have a great laugh about the situation. It genuinely never seems to mean anything to them that the taxpayer is going to be forced to pay their bills, to the tune of tens of billions. More than that: it never seems to occur to them that their actions might harm people.

I write psychological crime, so I spend a fair amount of time thinking about morality and amorality and what underlies them. And it seems to me that this amorality could be a symptom of something deeper: a total disconnect between action and consequence.

Ireland’s population is just over half that of New York City’s. Our ruling class — including many of the politicians, bankers and property developers who wrecked the economy — is a tiny community, interwoven by friendship, marriages, education, sports and financial transactions to a degree that would be unimaginable in a bigger country. That interweaving has created a safety net that won’t let any of the ruling elite fall. If you’re a banker and your golf buddy’s kid wants to be a banker, then it doesn’t matter if the kid is an idiot, or if he kills cats for kicks: you’ll take him on, and you’ll keep him on…….

full article at source: http://www.nytimes.com/2013/07/28/opinion/sunday/the-psychology-of-an-irish-meltdown.html?smid=tw-share&_r=2&

‘I’ll never pay taxes in Ireland again’

The 55% rate for self-employed contractors with few benefits has led many of my engineering friends to emigrate, and knowing it is all going to pay for the banks’ mistakes means I won’t be back, writes Jack B

There has been a lot of talk in the last few weeks, in Ireland and abroad, regarding the “Anglo Tapes” which have become infamous around Europe. Currently I am gainfully employed in Germany, and I’ve seen the mounting animosity towards Ireland recently first-hand in my new country of residence.

People who are aware I’m Irish have been questioning “how much did I know was going on?” It’s becoming increasingly difficult to put the palms out and admit I was aware were being carried out in a haphazard way. All it does is engender to my fellow Europeans how much of a bunch of blackguards the Irish truly are……………….

full article at source: http://www.irishtimes.com/blogs/generationemigration/2013/07/15/ill-never-pay-taxes-in-ireland-again/

 

Comment:

By Thomás O Cléirigh

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I was self-employed and I am now registered as unemployed for the past 5 years. I have not received any assistance from the state , No Dole and no financial assistance whatsoever : I paid all my taxes over the years and at one stage had over 6 full time employees working for me .I was in the hotel and catering business not the building industry  and I am discussed with the revelations of Anglo and also with the payment our self-serving political lackeys who infest in the Dial. The self-employed of this country are an easy scape goat and an easy touch I agree with the body of the above article and the gombeens in the Dail will learn soon enough that you cannot suck the people dry and expect them to continue to lie-down and take it forever, push the people so far and you will end up with open revolt! Roll on the Irish revolution !

The Anglo Tapes

By The Story

Myself and Tom Lyons wrote yesterday in the Sunday Independent about new revelations from The Anglo Tapes, new audio of which is available over on Independent.ie.

This follows on from the trojan work of Paul Williams, Fionnan Sheahan, Dearbhail McDonald and Donal O’Donovan in the Irish Independent last week.

full article at source:http://thestory.ie/2013/07/01/the-anglo-tapes/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+thestory%2FQSEJ+%28The+Story%29

Comment :

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It is indeed to the thanks of the likes of Paul Williams and others that we the people even get to hear the likes of these tapes .Thank you to all who made this possible!

With regards to the X Directors and some serving directors (including the so called “public” placed leaches by the government) of the various toxic Banks, I believe all of these should be banned immediately from holding any public office and criminal charges should be brought against all of them. The charges would be of gross misconduct, negligence, and conspiracy to defraud the citizens of Ireland. All expenses should be investigated by an outside source such as Scotland Yard and some other police force but definitely not the Irish police as I believe they are too close to the various suspects!

Where are the tapes of Allied Irish Bank? This bank is worse than Anglo Irish and they got just as much money from the taxpayers so why are the X Directors not been brought before the courts?

The Bank of Ireland and the other credit institutions have criminal charges to answer for too, five years on not one of the responsible have been brought before the courts, indeed they have been rewarded with fat pensions and in some cases  some have received new employment on the boards of public companies, why??   Why was nothing done about these tapes 5 years ago why are they now suddenly brought out to the media, what are the loans outstanding of Mr. Kenny, Noonan, and Gilmore? For that matter what about all of the TD,s and the private pal advisors of the minsters ?? let’s have all the top civil servants in the department of Finance have their  bank loans investigated as well! There is dirt and muck everywhere and we are been fed these tapes ( a few crums)  because they are hiding a much bigger scandal.Heads must roll now!

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Thomás O Cléirigh

On the Anglo Irish Tapes

“Distracted from distraction by distraction”

T. S. Eliot

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Think about it what are they hiding?

Machholz Blog

Bank of Ireland thought AIB was also lending recklessly before financial collapse

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Photo: by Machholz

Allied Irish Bank was also seen as a reckless lender by its main rival, Bank of Ireland, according to the latest batch of the Anglo Tapes.

Conversations heard between Anglo execs before the banking collapse heard them say BoI thought AIB was lending to “every cowboy in town”.

Since the banking collapse AIB and Anglo have both cost struggling taxpayers €50billion to rescue.

In the latest recordings, Anglo executive John Bowe is heard telling former CEO David Drumm: “They (Bank of Ireland) think that Allied have played fast and loose with lending money to every cowboy in town – apart from ourselves also lending money to every cowboy in town.”

For the first time the tapes bring other banks under scrutiny and give an insight into the banking system and what each bank thought of the other’s banking practices.

The tapes also hear Bowe remark on Bank of Ireland’s confusion that its share price was falling faster than AIB’s.

He said: “They think.. they’ve been the sensible bankers and the market just doesn’t get it.”

And he tells Drumm: “What is exercising Bank (Bank of Ireland) more than anything else is why they’re being beaten up more than Allied (Allied Irish Banks).”

full article at source: http://www.irishmirror.ie/news/irish-news/anglo-tapes-bank-ireland-thought-2015012

Anglo Irish Bank David Drumm has ruled out any return to Ireland

The former chief executive of Anglo Irish Bank David Drumm has ruled out any return to Ireland and repeated his claim that the Central Bank, the Financial Regulator and the Department of Finance all knew the details of the controversial Maple 10 share deal wich saw the bank lend  €450m to 10 customers so they could buy Anglo shares.

In an interview with the Sunday Business Post  which is published this morning he said that when he had told the authorities he was going to lend the money to the 10 so they could buy shares and reduce the stake held by Sean Quinn “they were thrilled, chirpy”.

He said the Central Bank and the Financial Regulator said “’let’s get this done’ because the fear factor was just huge”.

Mr Drumm also insisted that Anglo had not misled the Government about the extent of its loan book on the night of the bank guarantee in 2008 and said that Sean Fitzpatrick’s practice of warehousing loans was also known to the regulator in 2007.

full article at source:http://www.irishtimes.com/newspaper/breaking/2011/1127/breaking11.html

Comment

What can one say except that this ganster  and all the rest should be in Jail

Biggest losses in Irish corporate history!

By Cormac Murphy

Thursday March 31 2011

ANGLO Irish Bank unveiled the biggest losses in Irish corporate history at €17.7bn on what was another Black Thursday for the banking sector.

Anglo made the announcement on the day the results of the Central Bank‘s stress tests are being announced.

The bank has broken its own record for incurring the worst ever losses in Irish corporate history, saying 2010 was another exceptionally difficult period.

The loss figure includes impairment charges of €7.8bn and a loss of €11.5bn on disposal of assets to the National Asset Management Agency.

Anglo said the impairment charges included €2.6bn relating to NAMA loans.

The scandal-hit lender, which was run into the ground by former chairman Sean FitzPatrick, has cost taxpayers €29.3bn in recapitalisation costs.

CEO Mike Annesley said the bank believes 2010 was the last year of these types of extraordinary losses.

In a significant statement, he said: “We don’t expect that the taxpayer is going to need to put any more funds into the bank.”

However, if the property market continued to fall that would have an impact on the future value of the loans, he added.

Anglo is winding down and it is tasked with managing the repayment of some €35bn of loans still on its books.

In the past few weeks, its deposit book has been transferred to AIB.

Mr Annesley said that the bank had gone from 1,800 staff when the bank was nationalised to 800 and back to 1,300.

He told RTE’s Morning Ireland that the bank expects to be somewhere around the 1,000 mark by the end of 2011.

Anglo said its net interest income came to €0.7bn for the year.

Total expenses amounted to €353m, compared to €309m in 2009.

During the year, customers’ deposits declined from €27.2bn to €11.1bn by the end of December 2010.

Borrowings from banks increased to €46.6bn and included €45bn from central banks compared with €23.7bn in 2009.

Anglo said its total assets by the end of the year were €72.2bn, down from €85.2bn in 2009.

Its impaired loans totalled €17.6bn.

The bank said conditions in wholesale funding markets remain extremely difficult and it continues to rely on Government and monetary authority support mechanisms.

Anglo, nationalised in January 2009, has so far received promises of State assistance totalling €29.3bn.

It has also appointed consultants to value its US loan book and is continuing to pursue former chairman Sean FitzPatrick through bankruptcy proceedings.

The bank gave an update in an annual report of what former directors of the bank continue to owe the lender, including Lar Bradshaw, David Drumm and William McAteer.

comurphy@herald.ie

– Cormac Murphy

then we have this from Dan White from the Herald.ie

Having already committed €46bn of taxpayers’ money, the indications are that Michael Noonan would be coughing up at least another €23bn. This will bring the total up to at least €70bn, the equivalent of almost €40,000 for every person still working here.

The latest black hole in the banks’ balance sheets has been caused by the rapidly worsening state of their mortgage loan books.

The banks have been clobbered by a double whammy of soaring arrears and the fact that most of their mortgages are loss-making trackers.

This is going to force all of the major banks, particularly AIB and Permanent TSB, the mortgage banking subsidiary of Irish Life & Permanent, to make major writedowns on home loans.

It means BoI and IL&P, the two banks which had avoided State ownership, are now set to follow AIB, Anglo, EBS and Irish Nationwide into State control.

Two-and-a-half years after Brian Lenihan’s disastrous decision to unconditionally guarantee their deposits and bonds, all of the Irish-owned banks have now been effectively nationalised.

source:http://www.herald.ie/national-news/left-with-euro40000-bill-for-every-irish-worker-2602341.html

Comment:

Isn’t it a bit strange that Anglo would come out to-day with these catastrophic losses the same day we are getting the results of the latest stress tests for the Irish banking system?

I believe this has been carefully planned by the Central bank and the department of Finance. The news is as bad as it could be. The Irish taxpayer is again forced into a position of having to swallow this private toxic debt. Why won’t the new Minster of Finance shut this black hole down? May I remind him he is supposed to be working for the Irish people and not the international bondholders?   

 We have now have witnessed five attempts to stabilize the Banking system and 3 stress tests and as far as I am concerned we still haven’t got to the real figures yet! Not unless we hear the big D word Derivatives.

Where are the Derivative losses from the banks???  

Since September 2008 Government guarantee of 400 billion

2009 then we had 10.875 billion injected into the banks

Early 2010 we had another 22billion injected the banks again

Late 2010 we had 13.5 billion into the main banks

And now today, we are told that the banks will need another 24 billion injection

What makes anyone believe we have now got all the figures on the table we were lied to before and we are now been lied to again? This is not what the Irish electorate wanted Mr. Kenny you said not one cent more. How can you justify hospital closures and the slashing of essential public services just to bailout private gamblers?

Gardai will say ‘no law was broken’ by Anglo 10

Irish Independent
By MAEVE SHEEHAN

GARDAI are to recommend that the “golden circle” of 10 businessmen who were loaned money by Anglo Irish Bank to buy shares in the stricken financial institution should not face charges.

Investigators were unable to find evidence that the ‘golden circle’ committed a crime in accepting loans from Anglo Irish Bank to buy a 10 per cent stake during a critical financial period, according to an informed source.

The fraud squad will report their findings in a file to be sent to the Director of Public Prosecutions within weeks, at the end of an 18-month investigation. The criminal investigation into executives at Anglo Irish Bank who organised the “loans-for-shares” deal continues, however. The Office for the Director of Corporate Enforcement is still investigating the transaction.

The garda file on the “Anglo 10″ is the first to be sent to the DPP in relation to the biggest financial investigation in the history of the State. At least 15 other criminal matters remain under investigation.

The identities of the 10 have never been formally disclosed, despite pressure from opposition parties. They include some of the country’s top developers and business people who were long-term clients of the banks. Some of the 10 were interviewed by gardai, while others engaged through legal advisors, according to the source.

The “golden circle” of investors was assembled by Anglo in 2008, after insurance tycoon Sean Quinn bought a 25 per cent indirect stake in the bank but sought to reduce it to 15 per cent. The remaining 10 per cent stake would have flooded the market, driving the share price down and further destabilising the bank.

Anglo hand-picked 10 of its long-standing clients, approaching each individually and offering them loans totalling €451m to buy up the 10 per cent share overhang. The loans were secured against the shares, with 25 per cent secured against the assets of the “golden circle”.

Anglo has since admitted it will have to write off €300m of the loans, a loss that will be carried by the taxpayer.

The identities of the 10 were referred to in internal documents as the Maple 10.

The Financial Regulator referred the transaction to the garda fraud squad last year on suspicion that Anglo had mis-represented the transaction to the regulator because it did not disclose to the regulator that it was financing the share deal.

In relation to the Maple 10 transaction, their inquiries have focused on whether the bank concealed the fact that it financed the loans to the Maple 10 to buy the stake.

While the 10 individuals are expected to escape charges, the investigation into the role of Anglo executives in structuring the transaction is still under investigation.

Ulick McEvaddy, a well-known business figure, famously described the “Anglo 10″ as “heroes” who were prepared to put themselves at risk to support the bank. Taoiseach Brian Cowen has refused requests to name the 10 on the advice of the Attorney General.

Investigations are continuing into potential market abuse and market manipulation in a series of share deals and loan transactions that propped up the troubled bank in the months before its collapse. The offence carries a 10-year prison sentence and up to €10m in fines.

The principal criminal investigation surrounds the transfer of €7bn from Irish Life and Permanent to Anglo to bolster its accounts as the bank came to the end of its financial year.

Sean FitzPatrick, the bank’s former chairman, has been arrested and questioned about the transaction. Mr FitzPatrick is also being investigated over €87m in personal loans over eight years which did not appear in annual reports. Another Anglo executive, Wille McAteer, was also arrested. Its former chief executive, David Drumm, has arranged to be interviewed by gardai.

source: http://www.wiseupjournal.com//?p=1636

Comment:

If this is going to be the result of the Gardai investigation then there is no law in Ireland except for the poor !These golden circle lads were privy to insider information and were guilty of insider trading this is of course illegal and there must be prosecutions .Attempting to manipulate the shares of an institution you know to be bankrupt is obviously fraud and the fact that these people were able to take advantage of the insider information by hedging themselves shows that they were able to benefit financially when the ordinary shareholders were about to lose all of their invested funds. This stinks of corruption !

Drumm (of Anglo Irish Bank)suffers setback in court

The Chatham home of disgraced Irish banker David Drumm is on the market for $5.5 million. Cape Cod Times/Christine Hochkeppel By Sarah Shemkus sshemkus@capecodonline.com March 05, 2011 BOSTON — Disgraced Irish bank chief and sometime Chatham resident David Drumm won’t be allowed to bill his former employer and largest creditor — Anglo Irish Bank — for his time and legal fees as his bankruptcy proceedings continue. Judge Frank Bailey denied a request by Drumm’s attorney, Heather Zelevinsky, that Anglo Irish compensate her client for the legal fees and lost wages he would incur from further participation in what she called the “almost neverending discovery process.” In February, Drumm gave a six-hour deposition to Anglo Irish attorneys. “It is burdensome on the debtor to appear before Anglo Irish for this prolonged discovery,” Zelevinsky argued Friday in U.S. Bankruptcy Court. Bailey disagreed. “He selected this forum and he’s going to submit himself to examination at his own cost,” the judge said. A request of this kind is “highly unusual,” said Alex Rodolakis, a Hyannis-based attorney with expertise in bankruptcy procedure. “I am not aware of any circumstance in which an individual debtor has been compensated for their time related to their own bankruptcy case,” he said. Drumm’s case continues to unfold. Bailey ruled Drumm will have to submit to further questioning by lawyers for Anglo Irish and turn over documents relating to an investigation by Irish regulators into his actions as CEO of the bank. The hearing, which Drumm did not attend, was part of ongoing proceedings related to his bankruptcy filing. “We’re here to offer a fresh start for debtors, but part of that is disclosure,” Bailey said during his ruling. Drumm was chief executive of Anglo Irish when scandals first broke concerning the bank’s lending and accounting practices. Drumm resigned his position in December 2008, one month before the Irish government took control of the bank. Shortly thereafter, Drumm and his family moved to a home they own on Stage Neck Road in Chatham. They have since moved to Wellesley but still own the Chatham home, which is on the market for $5.5 million. Drumm has steadfastly refused to return to Ireland to participate in legal proceedings and investigations regarding his role in the collapse of Anglo Irish. The bank has sued him for 8 million euros — $11.2 million — though that case was automatically suspended when Drumm filed for bankrupcty protection in U.S. courts in October. In December, Ireland’s Chartered Accountants Regulatory Board declared that its investigations had found reason to believe a case exists against Drumm regarding questionable loan transactions made during his tenure as CEO. It is the report of this investigation and the written information Drumm provided as part of that process that Anglo Irish attorney’s were granted access to in Friday’s ruling. “It is certainly the bank’s position that these documents are highly relevant,” said the bank’s attorney, Kenneth Leonetti. The documents, he said, would contain information about the possibility that Drumm had knowledge of 10 million euros ($14 million) in loans made to key customers for the purpose of buying shares in Anglo Irish. The documents might also shed light on whether Drumm was involved in changing the terms of some of these loans and whether he was involved in moving some loans off the books to make the bank’s financial condition look stronger than it actually was, Leonetti said. “Frankly, we’re skeptical of some of the things the debtor said at his deposition on these topics,” Leonetti said, labelling some of the comments Drumm has made as “fantastical stories.” Zevelinksy claimed concerns have been raised over whether the report is accurate, saying that some observers believe its contents to be “strictly political” and riddled with factual errors. “It didn’t seem relevant for us to produce it,” she said. “We’re on a wild goose chase here.” Drumm’s creditors have until March 18 to object to the banker being declared bankrupt. Anglo Irish is still deciding whether to file a challenge, Leonetti told the court. Zelevinsky said she considers it very likely that the bank will object.

source: http://www.capecodonline.com/apps/pbcs.dll/article?AID=/20110305/BIZ/103050303/-1/NEWS

Comment:

This is just showing the Irish people how arrogant this gob****  is ,he and the rest of the gangsters from the banks should be in jail!

Cowen’s meetings and Anglo problems

Cowen’s meetings and Anglo problems

By Gavin Sheridan – January 17, 2011

Right at the end of Leader’s questions last week, and with reference to his meetings in 2008, Mr Cowen said:

That would have been organised by Fintan Drury who organised the golf outing. It was about being able to sit down with people at the end of the day and having a chat about the economy. The Deputy will recall we had a mini-budget and saw recession on the horizon and a big slowdown in our economy. As Taoiseach, I was there chatting to see if there were ideas and to find out other people’s views of things and to see if things could be done which might be helpful. As the Deputy will know, those people would have some views on that. That was basically the total sum of it.

Except the ‘mini-budget’ was not held until April the following year, almost 10 months after the golf outing. I also don’t recall much in the way of pre-recession planning in the works by FF in the summer of 2008. As I recall the party was still getting over the euphoria of a new party leader and new Taoiseach. The way the Taoiseach talks about it here, one would be left with the impression that the mini-budget had happened, the economy was spiraling out of control, and he was seeking the views of some businessmen/bankers on what to do.

But the meeting took place before Lehman, before FF realised the extent of the crisis and before the recession took hold. This means that either Brian Cowen doesn’t remember the meeting, or else when it took place. Or he is just spoofing.

In relation to the NTMA, Vincent Browne also raises some interesting questions in relation to Michael Somers’ interview last week:

So now we know the following:

In 2007 the NTMA came under considerable pressure from the Department of Finance to deposit more funds with the banks;

So severe was the pressure that the then head of the NTMA, Michael Somers, sought legal advice on what he should do;

The NTMA did not buckle under the pressure;

The bank, perhaps the only bank that needed funds urgently in 2007, was Anglo Irish Bank;

David Drumm, then CEO of Anglo Irish Bank says Brian Cowen had been asked to help with the NTMA and had expressed annoyance about the obduracy of the NTMA;

Brian Cowen denies he made any representations on behalf of Anglo.

Interesting.

However this document has also been doing the rounds lately, as released to the Public Accounts Committee (worth a detailed look):

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Document

Toggle Description Description

Public Accounts Committee

Contents

Original Document (PDF)

Related Article »

To print the document, click the “Original Document” link to open the original PDF. At this time it is not possible to print the document with annotations.

And just one more thing. If as early as 2007 Anglo Irish Bank was having liquidity problems, as now seems clear, and if the NTMA refused to increase deposits at the bank, who then, provided liquidity? (most likely around the time of the Northern Rock crisis, a bank with similar issues to Anglo).

Perhaps a clue lies with our own Central Bank. For around that time, the ‘Other Assets; of the Central Bank increased dramatically for a period of three months. Here’s a graph of the those assets from September 2006 (around the property peak) to late 2008 (pre Anglo nationalisation but post guarantee)

In July 2007 the other assets stood at €3.8bn. By late September they had almost quadrupled to €12.3bn. Just what was this for? At the time this was a record for the Central Bank, a record that in recent months has long since passed (other assets in December stood at €51bn).

Northern Rock was forced to go to the Bank of England for funding on September 14, 2007. Was Anglo also receiving funding, and was a quiet bank run underway? How aware was the Department of Finance and the government of problems at Anglo in September 2007 and the months that followed?

source: http://thestory.ie/

Comment:

 

Cowen seems to have a natural ability to lie and the public are not buying anything he says anymore. He is as toxic now as Anglo Irish Bank

Time to clear house and bring in a new political system that forces accountability and honesty back into the people that we entrust to run the country

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