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Posts tagged ‘Anglo Irish Bank hidden loans controversy’

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):

document29

Document

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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

We must reinvest the State with men and women who speak the truth and act exclusively in the interests of the people

Brian Cowen‘s troubles are deepening by the hour. The consultation process is little more than theatre. His survival is on a thread [“hangs on a thread” or “is on a knife-edge”] as more and more of the facts emerge. The greatest step forward in this process of slow revelation of the truth I will shortly examine [we never find out “the greatest step forward” in the article]. First, however, there is [are?] Mr Cowen’s statements about himself.
He concealed more than he conceded in his lengthy statements to the Dail on Thursday [you mean Wednesday 12th, 2011 during Leaders Questions, no?]. He failed to answer crucial questions [any hints about what “crucial question”]. He concealed details of significant conversations about Anglo Irish Bank held with senior bank staff, board members and other politicians [what “details of significant conversations”?]. He denied exchanges that have been clearly claimed by others [what exchanges?]. He has since continued to prevaricate. This is what mr [Mr] Cowen has been doing, with little respect for the truth, over the last three years in respect of the banks, and notably, Anglo Irish Bank.
‘The Fitzpatrick Tapes’, the book which gives Sean FitzPatrick’s version of events and which led to this week’s confrontation in the Dail by opposition party leaders, had all the appearances of a tailor-made script for the Taoiseach, giving him three events that he could easily answer [just what does that mean, how could he “easily answer” revelations of hitherto undisclosed meetings/conversations] (though nothing was easy about the answers he gave): the St Patrick’s Day phonecall; the game of golf; and the Anglo Irish Bank board dinner [which dinner? the one at Heritage House in April 2008?]. Whatever one may think about the truthfulness or otherwise of the Taoiseach’s account, it cannot be challenged further without forensic investigation and testimony under oath. [really so posing what many might consider common sense questions at the next Leader’s Questions wouldn’t challenge it further?]
Many people in Ireland today would like to see that kind of investigation replacing the shambles in the Dail as Mr Cowen, more or less successfully, indulged in political rhetoric, insults, jibes and managed to put over the claim that, on all occasions summarised above, nothing was said about the crisis facing Anglo Irish Bank [“all occasions” – well this is just plain wrong, the Taoiseach has admitted that the St Patrick’s Day phonecall concerned the Anglo share price and Sean Quinn’s shareholding – surely that was about the “crisis facing Anglo”?]
 last November and before, Mr Cowen’s claim was that he first heard of the problems in Anglo Irish prior to March 2008 [this sentence doesn’t even make sense – does the writer mean that Mr Cowen claimed that he only first heard of problems in Anglo in March 2008?]. He sought to rubbish the story on grounds of the anonymity of the source. t[T]oday, the source is known to be David Drumm, and his words ring as true as they did then, with the added advantage of his name being behind them.
In that November 6 [should the Independent not have a house style for representing dates and if so shouldn’t the style be “November 6th”?] article, I said that Mr Cowen was at an Anglo Irish board dinner in April of that year [2008 presumably?] where the discussion was exclusively about the problems faced by the bank.
I outlined the role played by Sean Quinn, of Quinn Insurance. Quite openly and deliberately, in Mr Cowen’s presence, the discussion [at the dinner in April 2008?] was focused on these financial difficulties. These were seriously aggravated by heavy gambling at the time with “Contracts For Difference”, which ultimately came to represent a quarter of Anglo Irish Bank shares.
On that occasion, according to Mr Drumm, Mr Cowen promised intervention with the National Treasury Management Agency (NTMA) in order to get them to put deposits with Anglo. However, the then head of the NTMA, Michael Somers, has said [yesterday?] that no such request was made [by Brian Cowen, what about by others?]. The NTMA did not intervene [is this true, isn’t it the case that the NTMA did in fact recommence placing deposits with Anglo – Brendan McDonagh at the Cantillon School in September 2010]. There would have been even greater [even greater than what?] impropriety for the Finance Minister — knowing what he knew then of the perilous state Anglo Irish Bank faced — in taking the unprecedented step (which is now denied) of applying [what do you mean by “apply”?] to the NTMA. The full truth on this [aah, so we don’t have the “full truth” – what are we missing? Isn’t all we have at this stage suspicion?] would clarify the hopelessly compromised way in which we do business in this country.
I made clear in that article, based on Mr Drumm’s testimony, that the Financial Regulator, who has been generally, if inaccurately, characterised in the media as having been asleep at the wheel, was in fact in close contact with the bank. His hand was stayed, however, by sustained protection of Mr Quinn. Fianna Fail, including Mr Cowen [this is an amazing revelation, where’s the evidence?], were lobbying for Mr Quinn. The Financial Regulator knew that Mr Quinn was taking money from his insurance company and that this was illegal on two counts [again this is amazing, why has Sean Quinn not been arrested or charged with something which is being stated without qualification to be “illegal”?]. However, Mr Quinn was “untouchable”. Yet what he was doing represented death for Anglo Irish Bank.
The Financial Regulator should have come down heavily with regulatory decisions but failed to do so [what decisions?]. Mr Quinn was allowed to take money from his insurance company and gamble it through the bank. Anglo Irish Bank facilitated the placing of the Quinn stake and then part-funded it [part-funded? it seemed from Paddy McKillen’s testimony at the High Court last October 2010 that Anglo had not only fully- funded the purchase of shares but the funding was on a full non-recourse basis to boot].
To demonstrate how up to their necks the Financial Regulator’s office were before the placing, at one meeting Pat Neary told a member of the bank’s board that Sean Fitzpatrick was talking too openly about the Quinn stake [how credible is this? Sean Fitzpatrick was the chairman of the board and was presumably at the banks’ board meetings. Why did Pat Neary not say this directly to Sean Fitzpatrick’s face? Are there minutes to these board meetings which would evidence this?] . This member was told to tell him to “shut his mouth”. It was alleged that if it got out “there could be run on the system”.
Mr Cowen refused to answer these and other significant points at the time [last November 2010 presumably] on the dubious basis that they were ‘anonymous’. This anonymity was required at the time by my source. However, it is quite ludicrous to suppose that Mr Cowen did not know the source.
Even changing the Government will leave us with a huge burden of reparation. [true but it might change the culture that “bred the carbuncle”]
We must reinvest  the State with men and women who speak the truth and act exclusively in the interests of the people.

full article source: http://wp.me/pNlCf-Wb

Comment :

This is why we have all over the country now new independent movements like our Residents Movement for Political Change .We are convinced that changing the personal in government with more of the same established gombeen politicians will achieve nothing whilst they will all clam to want to change politics the truth is they have a vested interest to keep things as they are because of their collection of entitlements the current system allows them to collect!

You cannot have real change using the same old corrupt political parties the corrupt system has established! You must have new independent community movements that have no connections to the current corrupt political system ad that have at their core values that will route out cronyism and gombeenism. For real change we must put new men and women who speak the truth and act exclusively in the interests of the people and not is the interests of out dated, clapped out political parties that have only looked after their own office holders by placing them in plumb jobs here in Ireland and elsewhere in the world. Every time they come on to the radio to discuss policies the end up blaming each other for the problems of the country .Just listen to them blaming each other for past and present failures that have left the taxpayers paying for their incompetence.

Voting for people from each of these political parties will only keep the twiddle dumb and twiddle Dee political system in place and the same old codgers will feather their own nests with still more perks and pensions .Stop this gravy train from taken off again in the next Dail for God sake!

Max keiser on David Drumm of Anglo Irish Bank

What’s David Drumm former Anglo Irish ” top jock”  up to now in the USA? Why up to his old tricks!

Sean Dunne in Belle Haven

sean dunne

Image: Herald/Library Images

Irish property tycoon Sean Dunne moved his family to Belle Haven, the uber-exclusive Greenwich, Connecticut, neighborhood that is home to Paul Tudor Jones, earlier this year.

And now, Sean Dunne has been dubbed “a pariah” by local paper Greenwich Time, and residents say he should absolutely not be allowed to join the elite Belle Haven Yacht Club, the Journal reports.

For background, developer Dunne is one of several Irish speculators fleeing the country in the wake of what is now a fully-fledged bust (the former Anglo Irish CEO David Drumm has moved to Boston and financier Derek Quinlan decamped to Switzerland).

Ever the Irishman, he also likes to drink.

NYT profile on him begins:

It’s 3 a.m. at Doheny & Nesbitt, a favorite watering hole of Dublin’s political and business elite, and the property tycoon Sean Dunne stoops to retrieve a penny from the pub’s grimy floor.

One would think that Mr. Dunne, Ireland’s best-known building developer, would be in bed at this hour. It’s a weeknight, after all, and he has meetings that begin before first light.

He is on perhaps his fifth pint of Guinness, capping a rollicking night of Champagne cocktails, followed by a wine-soaked dinner — yet his thick brogue is clear of even the faintest slurring.

Elaine Buss, who is a member of the Belle Haven club, obviously read the article. So when she found out Dunne had asked a neighbor to invite him to the Belle Haven club for a commissioning, she was outraged by the possibility.

Buss said she would not support any bid by Mr Dunne or his wife to become members of the club. “We would not write a letter for them. He’s just so out of character with Belle Haven,” said Ms Buss, who added: “Of course we’ve all read about him.”

According to her, someone who jokes, drunkenly (he had about 10 drinks during the course of the interview, apparently), about being “technically insolvent,” has no place in Greenwich.

But unfortunately, he does.

Dunne is renting a $7 million Mediterranean-style mansion in Greenwich while he waits for his new home on Bush Avenue, inside the gated Belle Haven enclave, to be built.

That house is ostensibly what got him into trouble in the first place; he only got a renovation licence for the property but when residents saw that the majority of the old Victorian home had been demolished, they complained to the local council.

Buss, of course, was one of the protestors. Though if Dunne threatened to sue her – as she claims – for speaking up about the property, she does have reason to try and have Dunne thrown out of the nabe.

Ok, so maybe he drinks a lot. And maybe he has a cash-flow issue at the moment, but its not like Greenwich has never harbored businesspeople that have fallen, even temporarily, from grace (Dick Fuld; David Ganek are just two).

For the full story, go to the Journal >

Read more: http://www.businessinsider.com/developer-dunne-a-pariah-in-us-as-house-plan-angers-locals-2010-12#ixzz186iVjmst

Cowen as guilty as Sean Fitzpatrick

  Top Bankers and the Minister of Finance were told of the impending dangers and the outright reckles lending that was been done  by the Banks and their  institutions, the regulator ignored all warnings

Cowen is as guilty as Sean Fitzpatrick

 limerick accountant John Allen tells his story

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