What is truth?

Posts tagged ‘Cyprus’

Stealth Bail-ins and a Weak Market Confirmed by Dow Theory

By Christopher Quigley

You might think following Angela Merkel’s electoral success last month all was stable in Euroland; unfortunately, nothing could be further from the truth. I have it from reliable sources that Euros continue to flood out of Europe, so much so that Mario Draghi, the president of the European Central Bank, stated publically immediately after the German Elections that “unlimited” amounts of “money” will be available to support the Euro.

However, more worryingly, the specter of being “Cyprused” continues to haunt Euro citizens. Every month the “bail-in” model, placed into law during the Irish presidency, becomes the option of choice to save troubled banks. This phenomenon is not being widely reported yet its use is utterly destroying the faith ordinary Europeans have in their banks. General banking liquidity levels have become so low in England that the policy has now seeped into the sterling area. As reported by The Telegraph last week:

“Bail-in of Sterling Banking System Officially Begins As UK’s Co-Operative Bank to Bail-in £1.5bn With 100% Losses!”

“In the wake of the Cyprus Popular Bank’s depositor bail-in, we alerted Telegraph readers on April 2nd to the fact that bail-ins were coming to the US and UK, as The Fed and BOE had quietly created a resolution authority for unlimited bail-ins for TBTF banks.

Less than 3 months later, the bail-in of the western banking system has officially begun, as the UK’s Co-Operative Bank is seeking a £1.5bn bail-in recapitalization with junior bond holders and investors (including pension funds) facing a complete-100% wipe-out on £370m of permanent interest bearing shares (PIBS) issued by the Co-op.

Co-operative Bank faces nationalization if junior bondholders reject ‘haircut”.

Co-operative Bank’s rescue recapitalization needs the support of £1.05bn – or around 80pc – of the holders of £1.3bn of its junior debt or the lender could end up being nationalized.

Evan Sutherland, the chief executive of the Co-operative Group, called the rescue plan “good news for The Cooperative Group, The Cooperative Bank, its customers and our members.”

He said it meant both investors and the group would make “a joint contribution” to the bank’s recapitalization, without any help from taxpayers.

However, a group of pensioners and other retail investors in the Cooperative Bank are facing massive losses under the rescue.

Astonishingly, the banksters are taking the theft to an extreme not even seen in the Cyprus bail-in: 100% losses!:

Holders of £370m of permanent interest bearing shares (PIBS) issued by the Co-op and Britannia Building Society before its takeover are expected to have their coupons cancelled, making them effectively worthless. Roughly 7,000 retail investors will be affected and the bank said that, on average, they held less than £1,000 in these bonds.

As Diesel BOOM let out of the bag a touch early, the Cyprus bail-in was indeed a template, as bond holders will be bought out with devalued or possibly worthless equity shares:

The Co-operative Group will issue a new £500m bond, paying about 6.5pc annually, to buy out the junior creditors. They will also be given equity in the group as the bank prepares to float up to 50pc of its shares on the stock market later this year. It is the first time that bondholders have been asked to take a haircut to keep a British bank afloat.

While some bond holders suffer 100% losses on the PIBS, Co-Operative Bank won’t have to sell any assets to raise capital

full article at source :http://www.financialsense.com/contributors/christopher-quigley/stealth-bail-ins-weak-market-confirmed-by-dow-theory

Who ran up a €1,600 bill ringing a single mobile number in Pakistan from the Oireachtas?

This story is by Ken Foxe and based on a recent story in the Mail on Sunday: Documents obtained under FOI are below.

A politican is suspected to have run up a bill of more than €1,600 calling a single mobile phone number in Pakistan, an unpublished Oireachtas memo has claimed.

Officials in Leinster House’s telecoms unit estimated that calls to a ‘very small number’ of foreign numbers were costing the taxpayer at least €14,000 per year.

Other costs included an estimated €1,249 bill for calling a mobile in Australia, €581 to a mobile in Lithuania, €381 to a Maltese mobile, €370 to a UK mobile, €366 to a South African landline and €331 to a landline in Cyprus. The officials admitted they were powerless to establish whether the expensive calls – made in 2010 – were legitimate as they don’t track who TDs and Senators call on their taxpayer-funded phones.

But the memo stated it was ‘difficult to imagine’ how they could be genuine. ‘It is difficult to imagine what Oireachtas business would give rise to calls costing €1,621 to a single Pakistani mobile phone number, and it would be irresponsible to consider the possibility that such calls might have been an unintended/improper use of the service provided. Without availabe data it is not possible to make any judgement on the matter……………

full article at source:  http://thestory.ie/2013/01/23/who-ran-up-a-e1600-bill-ringing-a-single-mobile-number-in-pakistan-from-the-oireachtas/

Ireland the next “Bailout “A LA Cyprus on the way !

By Thomás O Cléirigh

275

As I write this I am hearing on the Irish radio that the finance minster is in Talks to formalise the “Cyprus Bank bail in” system for a European wide execution .If you are an Irish depositor get your money out now as these crooks will be taking a hefty slice of you hard earned money to contribute to the next phase of the Irish Bank bailout madness!

The public are been kept in the dark as to the real ramifications of this so called new fiscal measures, now been formalized to secure the European banking system from total collapse. Make no mistake we the citizens are been set up once again for a massive fall and we will have to foot the bill that is sure to come by the autumn. Allied Irish Bank is Bankrupt and the only way for this toxic corrupt zombie bank to survive will be the wholesale robbery of its customers A LA Cyprus!  I just checked again on the RTE website to hear once again the news podcast but the item is no longer to be found!

The public are been kept in the dark!

See also: http://thepressnet.com/2013/05/13/if-i-provide-proof-that-the-entire-irish-banking-system-is-a-sham/

http://youtu.be/7gwCdgmTttU

AIB And ‘Fraud Of The Highest Order’

scam

This bank [AIB], which is still trading in the US/Ireland and is still accepting deposits and making loans, appears to have some pretty fishy underpinnings.

So begins a an alarming if somewhat baffling blog post by Trading analyst Reggie Middleton posted on Monday night.

In which he claims AIB is falsifying it’s true value through the misuse of one word.

And may be the next bank to be “Cyprus’d”.

Vincent Lebraun explains:

The trouble with this high-level fraud is that it’s so “out-there” that people won’t be able to understand how serious this is.

In the charge document registered with the Irish Company Registration Office, it says that it is in respect of “all present and future liabilities whatsoever” of AIB.

And the charge itself is over “eligible securities”.

However, in AIB’s 2008 annual accounts and the files to the U.S. Securities & Exchange Commission, document 20F (page 223 – 2), it states that the charge was placed in favour of the Central Bank and Financial Services Authority of Ireland over all of AIB’s ‘right, title, interest and benefit present and future in and to certain segregated securities.’

Using the description ‘certain segregated securities’ is completely different to the description all ‘eligible securities.’ This is fraud of the highest order, and it’s so simple (yet so complicated) that they were hoping no-one would notice.

And we don’t have to take this guy’s word for it: he has both documents posted on his site (although he initially posted an Anglo document but has since rectified it and posted the AIB one)…

Anyone?

article source: http://www.broadsheet.ie/2013/04/03/aib-and-fraud-of-the-highest-order/

Comment:

You have been warned get you money out to-day!

Olli Rehn Departs Reality Once Again

by

If one needs an example of out-of-touch, reality-denying and self-satisfied EU Commissioner, travel no further than Olli Rehn. Here’s the latest instalment from Court’s Favourite Entertainer of Things Surreal:
http://europa.eu/rapid/press-release_SPEECH-13-394_en.htm

The speech focuses on what went wrong in Cyprus.

In the speech, Mr Rehn commits gross omissions and conjures gross over-exaggerations.

Nowhere in his speech does Mr Rehn acknowledge that Cypriot banks were made insolvent overnight by the EU (including EU Commission, where Mr Rehn is in charge of Economic and Monetary affairs) mishandling of PSI in Greek government bonds.

Nowhere in his speech does Mr Rehn acknowledge that Cypriot banks were massively over-invested in ‘core tier 1 capital’ in the form of zero risk-weighted sovereign bonds (Greek bonds…………………….

full article at source: http://trueeconomics.blogspot.ie/2013/05/852013-olli-rehn-departs-reality-once.html

Tag Cloud