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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?

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