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Posts tagged ‘EBS building society’

State owns 99.8pc of AIB

AIB Bank Centre, Dublin 4, Ireland

Image via Wikipedia

By Laura Noonan and Donal O’Donovan

Saturday July 02 2011

THE State’s stake in AIB is set to rise to 99.8pc
by the end of the month, it emerged last night, as the financial markets
absorbed an unprecedented number of announcements about Ireland‘s radical
bank restructuring.

The revelations about AIB’s shareholding were revealed in a document
describing the Government’s plans to spend €5bn on new shares at 1c a piece and
pony up any extra money through a “capital contribution”.

The extra money will be the difference between AIB’s €14.8bn capital demand,
less a €1.6bn government loan and whatever money AIB is able to make from doing
deals with bondholders.

The capital contribution won’t dilute down existing shareholders, who would
have seen their collective stake fall to less than 0.01pc if the Government had
put in all the cash via new sales.

AIB also completed its merger with EBS yesterday, and revealed that the
building society’s chief executive Fergus Murphy will be joining the bank’s
newly revamped executive team while four senior AIB directors will join EBS’s

AIB and EBS will remain as separate brands and businesses, but some EBS
departments will have reporting lines into AIB, a statement confirmed. Customers
will be unaffected by the merger.

Yesterday also saw AIB get the green-light to proceed with attempts to buy
back debt from bondholders after a legal challenge by an investor was

Aurelius Capital had blocked two of AIB’s 18 debt buybacks last month, but
yesterday agreed to abandon its protest after reaching an undisclosed settlement
with the Department of Finance.

A source at AIB said it now expects to move ahead with an offer to buy back
the bonds at a steep discount using a so-called subordinated liabilities order
(SLO) sanctioned by the High Court.

The SLO gives the government sweeping powers to change the terms of AIB’s
subordinated bonds, making buyback offers at any price difficult to resist.

Yesterday’s also saw Anglo Irish
and Irish Nationwide officially merged into a new entity dubbed IBRC,
or Irish Bank Resolution Corporation, so the duo’s assets can be wound down over
the next decade.

Meanwhile, Irish Life & Permanent yesterday announced that most of its
junior bondholders have taken up an offer to sell back their debt at a discount.
The buyback of one €54m bond was not approved and remains outstanding.

– Laura Noonan and Donal O’Donovan

Irish Independent

source : http://www.independent.ie/business/irish/state-owns-998pc-of-aib-as-banks-revamped-2811522.html


All we have here is an attempt to sell the notion that we have completely new banks and all the rot has been taken care of but this is so far from the truth. What about the banks hopeless loss making derivative positions that are still been hidden. These losses run into the billions and are perhaps been kept in “off shore branch’s” in the IFSC the mother of all hot money clearing houses in the world .If you’re a despot dictator of thieving politician this is where you are most likely to be hiding your ill-gotten gains and if you’re are a drug king pin your sure to be hiding your loot here .The Mexican drug lords are sure to be hiding their drug money here as well! The upstanding Irish citizens working in the financial services in the IFSC in the “Funds management business” are
helping drug lords and despot politician from around the world hide their stolen funds and drug money.

Back to AIB .This is still a toxic pig in new clothing
nothing has changed the same gangsters are in charge and are still doing business.
Almost 3 years on not one of them is in front of a judge .But as an ordinary
citizen if you don’t pay your TV licence you will end up in an Irish Jail.

Bring these crooks to justice or else, we the people will
get justice for ourselves!


New Central Bank of Ireland figures show no slow-down in deposit flight

April 29, 2011

 by namawinelake

Figures released by the Central Bank of Ireland (CBI) this morning for the month of March 2011 show that the flight of deposits from Irish banks shows no sign of slowing down. From an Irish perspective, possibly the most significant figure to watch is the total of private sector deposits in the six State-guaranteed financial institutions (AIB, Anglo, Bank of Ireland, EBS, Irish Life and Permanent and INBS). The total which represents businesses and households fell to €106.3bn in March 2011 from €108.6bn in February 2011 and is now down €23bn from a year ago, €11bn since the IMF/EU bailout in November 2010 and €2.3bn down over the course of just one month. The CBI and ECB continue to provide substitute funding for Irish banks which replaces this flight of deposits and Irish banks continue to provide extensive State-backed guarantees on deposits. It remains to be seen if the pace of decline in deposits slowed after the bank restructuring announcements made after close of business on 31st March, 2011 – Minister Noonan indicated the early signs were encouraging but since then our sovereign bond yields have sky-rocketed again.

So, looking at the deposit figures produced by the CBI. First up is the consolidated picture for all banks operating in Ireland including those based in the IFSC which do not service the domestic economy.

Next up are the 20 banks which do service the domestic economy and include local subsidiaries of foreign banks like Danske, KBC and Rabobank. There is a list of all banks operating in Ireland here together with a note of the 20 that service the domestic economy.

And lastly the six State-guaranteed financial institutions (AIB, Anglo, Bank of Ireland, EBS, Irish Life and Permanent and INBS)

(1) Monetary Financial Institutions (MFIs) refers to credit institutions, as defined in Community Law, money market funds, and other resident financial institutions whose business is to receive deposits and/or close substitutes for deposits from entities other than MFIs, and, for their own account (at least in economic terms), to grant credits and/or to make investments in securities. Since January 2009, credit institutions include Credit Unions as regulated by the Registrar of Credit Unions. Under ESA 95, the Eurosystem (including the Central Bank ofIreland) and other non-euro area national central banks are included in the MFI institutional sector. In the tables presented here, however, central banks are not included in the loans and deposits series with respect to MFI counterparties.

(2) NR Euro are Non-Resident European depositors

(3) NR Row are Non-Resident Rest of World depositors (ie outsideEurope)



Just a few weeks ago Mr. Noonan reassured the public that “The total amount of deposits withdrawn from the pillar banks has been very significantly reduced”. And “the net deposit position of the Pillar Banks has improved significantly” So what’s new he was lying and I expect he will continue to lie to us over the next few years. This is what you get when you try to build so called Pillar Bank on the rotten foundations of corrupt and toxic banks in the first place!

Shut these toxic black holes down now!

A message to our own politicians

 “We will have our rights one way or the other “was the message of the Egyptian people:

 Now I have a message for our own politicians listen to the people “We want real change” We are sick of cronyism, elitism, and political incompetence, one law for the rich and austerity for the poor. We want those who destroyed our country to pay and be seen to be paying and not hide behind convenient laws that protect the rich whilst they head off into the sunset with multimillion euro handshakes. As I write this note I see the Finance Minister Michael Noonan warned “a number of top bankers are sitting on fat-cat contracts signed off by his predecessor and are due massive lump sums on retirement”. He confirmed Colm Doherty, the former managing director of Allied Irish Banks (AIB), secured a €3m plus package when he stepped down last November. “The previous government shouldn’t have allowed this situation to develop,” said Mr Noonan. “But Mr Doherty is contractually legally entitled to what he got because of the decisions made by the previous government according to Mr.Noonan. Firstly the same public interest directors are still sitting in their high paid jobs in these same banks. These people allowed this to happen and they must resign now. As for you Mr. Noonan , this is certainly a change of tone coming from you since you  left the opposition  benches in the Dail . I don’t care Mr. Noonan, change the law, have a referendum, this is wrong and you don’t need to honor what the last shower of gangsters in government allowed.  If you don’t listen to us we will take to the streets and there will be real change. The people have had enough! While you are at it you should sack all of the public interest directors on the various bank boards and replace them with ordinary unemployed citizens. We did not vote you in to become a mouth piece, supporting the past crimes of the last corrupt government! Get your finger our and start delivering on you promises.  

Listen to live line today: link:http://www.rte.ie/radio1/liveline/ 19th april

Reggie middleton

Reggie:  Here in Ireland , the new government have  broken their promise to the voters  not to put one cent more into the toxic banks. We are now been bombarded with a PR action basically saying that Bank of Ireland is now the only Irish bank that can stay private and we are be sold the notion that it is relatively unscaved and it can recover by getting new capital investment  what crap!

more on Reggies article here :http://boombustblog.com/reggie-in-the-news/2011/04/05/the-pressure-on-portugal-increases-as-ratings-agencies-finally-arrive-to-the-fire-before-the-house-burns-down/

Live press conference: Publication of Capital and Liquidity Results by the Central Bank of Ireland 31/03/2011 16:30

The press conference will be available to view live online from 4.30pm.

 video here link

Irish Life and Permanent engaged in activities that can only be described as fraudulent

This is an e-mail I sent to the central Bank and regulator this morning.

Dear Sir or Madam
Following the revelations that Irish Life and Permanent engaged in activities that can only be described as fraudulent and detrimental to the welfare of the shareholders in the year 2008 (the movement of 7 billion to Anglo-Irish Bank) in an attempt to defraud the shareholders of that institution I now call upon you to state if any investigation in ongoing and who if any persons involved have been charged with insider trading and what criminal action s have been considered ?
If it turns out to be the case that no action is been taken I then hereby state that it is my contention that persons within this institution engaged in insider trading and I demand charges be brought against them immediately a full investigation should be carried out and all persons involved be removed from positions within the Irish life and permanent until such investigations are finished and the guilty prosecuted 
Thomas Clarke
Independent Candidate for Wicklow


Thomas Clarke

I just rang the financial regulators in the central Bank and they tell me that I am not entitled to know if any investigations are ongoing in any of the financial institutions so any of the banks could be engaged in fraud, taking funds from their customers and we will only find out about after any investigations are complete?
Nothing has changed! We the customers are again been fleeced by the same gangsters as we are now forced to pay subprime interest rates .

Have we reneged on the IMF/EU bailout deal?

By namawinelake

(Memorandum of Understanding)

The decision by Minister for Finance, Brian Lenihan this week to postpone the next round of bank recapitalisations to after the general election was momentous and I don’t think the shock waves have been accurately captured yet. And the reaction of what are assumed to be the government-in-waiting must surely be a matter of deep concern for our lenders, as it would seem that there has been unilateral repudiation of a key term of our agreement with the EU/IMF (either a one-month-plus delay or a conditional repudiation). Let’s examine the sequence of events

1. 16th December, 2010 – Agreement with IMF/EU of bailout terms following Irish parliamentary debate and vote and IMF board meeting

2. January Exchequer Statement confirms that we have so far received €10.873bn from the EU/IMF facility (€4,979m from the European Financial Stabilisation Fund and €5,803m from the IMF Extended Fund facility) in Jan 2011. The December 2010 Exchequer Statement shows that there was no drawdown from the facilities last year.

3. 1st February, 2011- Dail is dissolved and it is claimed by Minister Lenihan that he discussed the possibility of postponing the recapitalisations with his colleagues.

4. Wednesday afternoon, 2pm, 9th February, 2011 – IMF produces broadly upbeat staff report on Ireland

5. Wednesday afternoon, 9th February, 2011 – Minister Lenihan issues statement cancelling his intention to recapitalise the banks before the general election – “the Minister has informed the European Commission, the IMF and the ECB” The Central Bank of Ireland responds in detached terms (“notes” cf “welcomes”)

6. Thursday afternoon, 10th February, 2011 – Minister Lenihan issues informal invitation to two main Opposition party finance spokespeople to write to him if they wanted the recapitalisation to take place before the general election.

7. FG finance spokesperson, Michael Noonan issues statement in which he says “if Fine Gael is in government will await the results of the solvency and liquidity review before we recapitalise the banks”. These reviews are due to be completed by Barclays Capital, the Boston Consulting Group and Blackshore by 31st March 2011. Work has been ongoing since January so there is the possibility that the results may be published earlier than 31st March.

 8. Labour party leader, Eamon Gilmore said, according to the Irish Times, “his party would not put any further capital into Bank of Ireland, AIB and EBS building society before renegotiating the bailout with the International Monetary Fund (IMF) and the EU”. I cannot find a statement on the Labour website on this subject.

9. General election on 25th February, 2011 with constitutional statement by An Taoiseach that the next Dail will meet on 9th March, 2011. The likelihood is that the next government will be a coalition and the usual post-election horsetrading may delay the formation of a government. For what it is worth, Paddy Power are offering 1/10 odds-on that the next government will be FG/Labour. I recall Paddy Power not being on the money with the outcome of the British general election in May 2010 but the only fly in the ointment I can see in our election is the uncertain role to be played by independents and small parties as my own sense is there is a palpable hostility/apathy towards FF (mostly)/FG/Labour. The reason for mentioning the likely outcome of the election is that above are the positions of the two main opposition parties likely to be in government, on the recapitalisation. So where does this all leave the agreement with the IMF/EU. We’re taking their money but not honouring commitments on the use of that money. The hope on the IMF/EU’s part must be that this is a temporary hiccup and this agreement term will be honoured in April 2011. I can’t find written statements from the ECB or the IMF or EU reacting to Minister Lenihan’s decision but press reporting suggests muted concern. I can’t help but notice that we have €11bn of the bailout funds plus €126bn from the ECB in our banks and yet we seem to be unashamedly delaying (or something more serious in Labour’s case) a key term of the deal.

Comment :

What about to notion that we haven’t seen the real extent of the problem? Perhaps we are only seeing the tip of the iceberg what if the hole in the banks is three times bigger or even four times bigger can we really believe a word any of the players to date .Brian Lenihan, Patrick Honohan Allen Dukes Brian Cowen and even the ECB with their Bank stress tests, none of their figures have been proven right on the on the contrary they all have been wrong.

For my money I bet the hole is so much bigger and we will have no choice but to default. By the time we have the full figures on the Banks derivative positions in CDS, s ,and OTC,s  we will be in for a nasty shock and Lenihan knows it!

The use of derivatives can result in large losses because of the use of leverage , or borrowing. Derivatives allow investors  to earn large returns from small movements in the underlying asset’s price. However, investors could lose large amounts if the price of the underlying moves against them significantly and boy has the underlying assets prices moved and it is down down down so its not going to be good news comming from the banks .

NAMA report and accounts for Q3, 2010 – is there a political reason for the delay in their publication?

By namawinelake

Money and Banking Statistics: December 2010
Well one thing is for sure, the period between NAMA delivering its quarterly report and accounts to the Department of Finance and the DoF publishing said documents is growing larger with the passage of each quarter as illustrated below:
QuarterCovering period toDelivered to DoFPublished
131st March, 201030th June, 201013th July, 2010
230th June, 201030th Sept, 20102nd November, 2010
330th Sept, 201031st Dec, 2010Still waiting………

There was a detailed entry on here at the start of January, 2011 examining the likely features of the Q3, 2010 report and accounts. From an incumbent party political viewpoint, the sensitive issue with these accounts will be the fact that NAMA has lost some €2bn+ since its incorporation. How? NAMA purchased loans by reference to a valuation date of 30th November, 2009 and although some markets have improved since then, the home market where the assets underpinning two thirds of NAMA’s loans are located has tanked. Also NAMA paid a Long Term Economic Value of an average of 10% above the value of the asset. Now it is true that 5% of NAMA consideration for loans is in the form of subordinated debt which will only be honoured if NAMA breaks even and it is also true that the NAMA Act provides for a levy on the banks proportionate to the value of loans absorbed (so Anglo and INBS will need cough up more than 50% of any ultimate loss which is of course ridiculous but practically speaking it is also ridiculous for AIB and EBS which are effectively State-owned, Bank of Ireland faces a challenging future). Taking all of this into account
So it may be the case that the Department of Finance (prop: Brian Lenihan, minister) may try to delay the publication of the accounts which remember are already four months out of date as they relate to the quarter ending 30th September, 2010. And remember also, the role of the DoF is not to change the accounts so arguably they should be generally published simultaneously with their delivery to the DoF. And even if the accounts are published, they are unlikely to show a loss because NAMA is unlikely to revalue tens of billions of euros of loans each quarter. But I think it will be perfectly reasonable to ask NAMA for a ballpark of the loss in value of the loans compared with their acquisition value (the answer should be €2bn +).


Fine Gael and property developers “Change what change”?

Fine Gael has secretly raised hundreds of thousands of euro from business donors including property developers, bankers and the racing industry, the Irish Mail on Sunday can reveal.

An investigation by this paper has established that the party has been able to bring in up to €150,000 a time by hosting businessmen to lavish golf days at luxurious British and Irish courses.

Fine Gael this weekend refused to disclose how much it has received from such gifts, or to identify the companies that have helped it build up a €3m election war chest. 

Swing: Enda Kenny who proposed to clean up politics scrapped a corporate donations banSwing: Enda Kenny who proposed to clean up politics scrapped a corporate donations ban

And thanks to our antiquated funding laws, the corporate donations do not have to be declared publicly as long as each payment is less than €5,000.

Personal donors can each give up to €630 each without ever having to be identified or their donation being made public.

However, the MoS has discovered that the donors have in the past included controversial tycoon Johnny Ronan’s Treasury Holdings, which is now in Nama, and construction industry giant CRH, which was one of the biggest beneficiaries of the housing boom.

Other businesses which have fielded teams at the fundraising golf days include the EBS Building Society and Martinstown Stud, owned by wealthy financier JP McManus.

Ironically, Fine Gael’s finance spokesman Michael Noonan banned such corporate donations when he was party leader in 2001, telling his members that such ‘gifts’ always came with an expectation of something in return.

However his party has since reversed that position and this weekend defended both the practice of taking cash from businesses – and refusing to say who is helping Enda Kenny and his party in their attempts to take power.

The golf classics – which raise just as much as the controversial Fianna Fáil Galway Races tent – are the brainchild of Fine Gael’s fundraising supremo, Anne Strain who has made millions for the party.

A former charity fundraiser, Miss Strain was headhunted by Mr Kenny eight years ago when he threw out Mr Noonan’s ban on corporate funding.

Teams of four pay up to €2,000 each – or €500 per man – to play while companies sponsor individual holes for sums of €5,000.

Each golf event can raise up to €60,000 in donations which under current political donation laws do not have to be declared at all. 

Leader board: Johnny Ronan's Treasury Holdings won a 2005 classicLeader board: Johnny Ronan’s Treasury Holdings won a 2005 classic

Other events such as sponsored dinners and lunches also raise up to €20,000 an outing in under-the-limit donations from corporate and other sponsors. In addition, a members’ draw raises more than €1m annually for Fine Gael.

‘Fine Gael say they want change and that the Irish people want change, but all they are offering is to replace one party backed by a tight cabal of wealthy corporate donors with another one,’ said Green Party candidate Oisín Ó hAlmhain, who challenged Fine Gael to publish its list of corporate donors.

The practice of accepting secret donations has also been criticised by the Standards in Public Office Commission (SIPO).

Aside from Fine Gael’s Eastern Regional Golf Classic at the K Club and its Southern Classic in Adare, the party also hosts a London tournament at Moor Park Golf Club.

Yet Fine Gael keeps the identity of these donors secret as it is entitled to do since donation laws allow individuals to secretly contribute up to €634 and companies to secretly give up to €5,078.

The last tranche of SIPO declaration statements by political parties – for 2009 – confirm this, with both Fianna Fáil and Fine Gael declaring no donations whatsoever despite the fact that 2009 was a local and by-election election year.

Issuing its most recent report, SIPO said that laws which were meant to increase transparency in politics were not working and that a new approach was needed.

‘The provisions aimed at ensuring transparency and openness in relation to disclosure of donations remain ineffective. It should be possible for each citizen to have a clear picture of election spending by each candidate and party and also a clear indication of the sources for such funding,’ the report reads.

‘If the intention of the legislation is to provide for transparency and openness in relation to party funding and expenditure, then it is not achieving this aim.

How golf made FG a secret fortune

Enda Kenny says he will clean up our politics: so why won’t he come clean over all the donations his party has taken from construction firms, racing yards and developers? 

On February 10, 2001 then-Fine Gael leader Michael Noonan made a bold and brave political move – one his own party has refused to accept ever since. 

In his first action as Fine Gael’s new leader he instructed all party employees and trustees to accept no more corporate donations.

‘All over the world, it is recognised that financial support from business to politicians is perceived by the public to have one purpose – the securing of commercial advantage,’ he said.

‘Claims that such donations are made from disinterested motives are simply not believed… As the lurid tribunal scandals play out before our eyes, one thing is clear. We cannot restore politics until the perceived link between political contributions and public policy is broken.’

Winner: JP McManus's Martinstown Stud came fifth at one FG golf classicWinner: JP McManus’s Martinstown Stud came fifth at one FG golf classic

Mr Noonan had good reason to be wary of the perceptions created by corporate donations. In a six-year period up to 2000, his party was gifted £112,680 by businessman Denis O’Brien – much of it through golf classics.

The donations have now become legendary and will feature as part of the subject matter of the long-awaited Moriarty Tribunal report.

But by May 2002 – when Fine Gael was thrashed in the general election of that year – the next leader had no qualms about corporate donations.

As soon as he took over, Enda Kenny scrapped the corporate donations ban and once again opened the doors to business funding. An internal report by party strategist Frank Flannery urged a far more targeted and professional approach to fundraising if Fine Gael was to have any chance of matching the funding raised by Fianna Fáil’s infamous Galway tent and other events primarily supported by developers and construction companies.

Mr Kenny agreed and Anne Strain, a renowned Dublin-based fundraiser was headhunted from the Alzheimer Society of Ireland where she had raised millions for charity.

An extremely energetic and enthusiastic individual, she was in place in Fine Gael HQ before the end of 2002.

Since then, a reinvigorated national members’ draw has raised €9.3m in ticket sales. Last year, the party sold 15,395 tickets at €80 a go, channelling €1.2m into its election fund.

Ostensibly the draw is aimed at Fine Gael party members but it has in the past been deliberately targeted at corporate donors – even when Mr ­Noonan’s ban was in place.

In 2001, general secretary Tom ­Curran wrote on party-headed notepaper to company executives who were known to have donated to the party in the past. ‘I am writing to you on a personal level to offer you the opportunity of helping to fund democracy,’ he wrote, asking each donor to purchase books of tickets for €250.

The draw aside, Miss Strain also opened up other avenues of fundraising.

The single most important development in that regard was the introduction of professionally run golf classics at which companies and wealthy individuals were encouraged to provide sponsorship in return for teeing off with Enda Kenny and members of his front bench.

Legally, any company donation made at these events does not have to be disclosed anywhere as long as it is less than €5,078.95. Similarly, donations from individuals which are less than €634.87 also remain secret.

Now each year the party’s golf classics take place at the opulent K Club in Co. Kildare, at the salubrious Adare Golf Club in Limerick, and the luxurious Moor Park Golf Club in London – one of the most exclusive clubs in Britain.

Although no details of those present at these events are made public, an MoS investigation was able to establish the names of the winners of some of these golf classics.

Developers Treasury Holdings topped the winners’ list at Fine Gael’s 2005 Eastern Regional Golf Classic in the K Club, with construction giants CRH Plc coming in third place.

It is not known – and Fine Gael is not prepared to say – who represented these firms, how much they donated or whether they are routinely present at FG golf classics.

‘I’ll have to get back to you on that,’ said CRH finance director and board member Maeve Carton when contacted by the MoS this weekend.

Treasury Holdings MD John Bruder did not respond to a message left on his home phone. Other winners’ lists – this time from the 2009 Southern Region Golf Classic in the Adare Golf Club – reveal that Martinstown Stud, the home stud farm of JP McManus, recorded a fifth-place finish. Prominent Cork construction firm McCarthy Developments finished in third place.

A request for comment about the value of the donations made by Martinstown Stud and McCarthy Developments went unanswered by both companies this weekend.

This weekend, Fine Gael once again declined to make public its corporate donation lists, or how much each attendee pays.

In theory, the same company could have donated €5,000 annually for a decade – a total of 50,000 – without ever being identified publicly. Furthermore company executives and associates can make additional secret donations as individuals.

Evidence which emerged last year suggests that companies routinely pay several thousand euro to sponsor individual holes at such events, while each individual team member can often be expected to fork out €500. 

Michael O’Flynn, a Nama developer, was named as a corporate sponsor. Mr O’Flynn sponsored a €1,500 fourball and was joined by a number of others, including estate agent Arthur French.

The O’Flynn Group also paid an undisclosed sum to sponsor the 18th hole at the K Club event. Also taking part in last year’s K Club Classic was accountancy firm Price­­waterhouseCoopers and EBS CEO Fergus Murphy.

When it made its 2006 financial accounts available to an academic, Fine Gael had listed total earnings from golf classics of €100,905.

With the prospect of FG taking power, last year’s outings are estimated to have earned much closer to €150,000 – about the same amount that Fianna Fáil used to raise from its Galway tent.

Fine Gael also runs scores of local classics for candidates, which Enda Kenny will often attend. The same is true of business lunches and dinners. These kind of events typically raise about €20,000 for the candidate.

In 2008, the party also ventured abroad raising €30,000 through a New York dinner packed with corporate and private donors – all making donations that are below the declaration limit in Ireland.

For years Fine Gael – and Fianna Fáil – have declared no donations whatsoever in official donation statements to the Standards in Public Office Commission (SIPO) because all of the money taken in from each donor was below the declarable limit.

The practice has alarmed many, including SIPO, since there is no way of knowing what political influence donors may be buying.

Or, as Michael Noonan said 10 years ago: ‘We cannot restore politics until the perceived link between political contributions and public policy is broken.’

The question now is, with the office of finance minister within his reach, does he still believe what he said then?

Comment :

Current Wicklow Fine Gael TD’s

  Andrew Doyle               Billy Timmins

When they come to your door asking for a Job ask them to account for their expenses and for full web access so we can all see them, also ask why we should pay them up to 10 times what  they expect someone on job seekers allowance live on  and you can tell them you will post their response here on this website  for all of Wicklow to see.

The only change we are going to get with Fine Gael is personalities their policies are the same as Fianna Fail’s  but different shade.

I am calling on these upstanding public representatives to present all their clamed expenses for each year for the last 2 years so we the citizens of Wicklow see where all this money went and I am calling on them also to explain to the voters of Wicklow why we should continue to pay them enormous salaries and pensions perks when the rest of us are struggling to hold on to our homes, jobs and dignity.

I believe a more fitting salary would be the average industrial wage.!

Thomas Clarke Independent Candidate for Wicklow.

Read more: http://www.dailymail.co.uk/news/article-1354159/FG-s-secret-cash-developers-Hundreds-thousands-euro-handed-lavish-golf-events.html#ixzz1DC0y6S46


The IMF/EU bailout estimates

 The IMF/EU bailout :



Two months ago as speculation grew about an IMF bailout, there were calculations on here which suggested that any eventual bailout would need be in the €200bn range. And there was no little surprise therefore when on 28th November, 2010 the bailout was announced with a quantum of €85bn. Just seven weeks later it is becoming obvious that not only is a €200bn bailout needed but the mechanics of that enlarged bailout are taking shape with the Central Bank of Ireland apparently providing funding to support promissory notes used to fund the bailout banks and both the CBI and ECB continuing to provide exceptional funding to replace fleeing deposits. This entry examines the true quantum and funding of the bailout.
At the end of November, 2010 the question on everyone’s lips was how much of a bailout did the State need and Minister for Finance Brian Lenihan was telling us to work it out for ourselves. And on here the stab was €207bn composed of the following:
(1) NAMA development funding of €5bn
(2) Deficit funding for 2011-2014 of €43.25bn
(3) Funding of the promissory notes used to bailout the banks – €31bn
(4) Repayment of national debt (maturing of existing bonds and treasury bills) in 2011-2014 – €38bn
(5) Replacement of ECB Emergency Liquidity Assistance – €90bn +
So imagine the surprise when on 28th November, 2010 the announced bailout was only €85bn with €50bn earmarked for deficit funding and up to €35bn set aside for the banks. The deficit funding of up to €50bn was in the same ballpark as the deficit funding identified by the government for 2011-2014. Add in an extra year’s deficit funding for 2015 and you’re pretty much up to €50bn so that component of the bailout made sense.
But what about the other components of the estimate on here? They haven’t gone away you know. It seems likely that one of the main reasons for the ballooning “Other Assets” (€51bn at the end of December 2010) being recorded by the Central Bank of Ireland (CBI) might be that the CBI is exchanging promissory notes from Anglo, Irish Nationwide Building Society and the Educational Building Society with brand spanking new funding. These promissory notes of course are the product of essentially Minister Lenihan writing IOUs up to the amount approved by the EU for bailing out the banks. And the CBI is also apparently helping to shore up fleeing deposits.
But what about the other three components? How exactly will Ireland repay maturing bonds and treasury bills this year and beyond? We are still close to historic highs on the bond market so presumably that avenue is still practically closed to us. So either we reallocate some of that €50bn-earmarked deficit funding or we return to draw from the seeming bottomless well that is the CBI’s  “Other Assets”. Of course the government might issue more directions to the NTMA and NPRF to invest in the rollover of maturing debt and pressure might also be brought to bear on the banks, particularly the State-guaranteed banks to substitute existing investments with Irish state debt. Ditto with pension fund operations in the State. It would be helpful to know though what the government’s plans are in this area.
The ECB’s “non-standard” liquidity measures, y’know the ones it has been “non-standardly” using since September 2008 when Emergency Liquidity Assistance (ELA)  first exceeded €50bn. And ELA funding has not once been below that level since and according to news sources the ELA balance to Irish banks at the end of December 2010 stood at €132bn though that would represent the first month-on-month fall since July 2010. The ECB or CBI apparently didn’t release figures for ELA funding of the 20-odd domestic Irish banks and of course they never release funding figures for just the six State-guaranteed banks. If deposit flight had halted however I would have expected high-profile announcements by the CBI and ECB – after all our banks are crying out for confidence at present and you might expect officials to dispense with formal reporting schedules if we had some good news. So how much longer is the ECB going to make available 24.1% of its total support to Eurosystem banks to Irish banks? Deleveraging options for Irish banks seem confused (NAMA 2 but who would fund it? Selling loan books but providing insurance against losses? Attracting foreign capital into a toxic Pandora’s box of a banking system?). At what point can we economically convert the perception of ELA funding from an overdraft to what it has practically become – a term loan, AKA a bailout?
NAMA’s €5bn development funding of a maximum of €5bn allowed by the NAMA Act is small beer compared to the totals under the other headings but as NAMA is a key theme on here the question needs to be asked – where is NAMA getting its much vaunted development funding? According to NAMA’s website : “Programme details [of the €2.5bn medium term note funding] will be published in Q4 2010” which plainly hasn’t happened and as far as I can tell NAMA’s €2.5bn short term euro paper programme has been effectively scrapped though the Q3, 2010 NAMA Report and Accounts (which are nearly three weeks overdue) might shed further light on the subject. NAMA may end up using loan repayments to help fund future developments but that is not how NAMA was intended to operate. So for the time being the source of that €5bn funding is unclear.
And what is the significance of the bailout being €200bn+ rather than €85bn? Firstly there is the risk that the additional funding might not continue – step forward Mr Trichet and the ECB, and it is unclear how the CBI can continue to quantitatively ease itself towards €100bn+ of “Other Assets”. Secondly there is the risk that even if funds are forthcoming they may be tied to the Irish sovereign and to assets which might eventually fall in value – step forward further bank losses. And thirdly there is potential debt servicing which might more than double the annual €10bn-odd presently being contemplated.
So at this point the bailout is looking more like €300bn composed of the following sources – IMF (€22.5bn), EFSF (€22.5bn), EFSM/bilaterals (€22.5bn), NTMA/NPRF (€17.5bn), ECB (€100bn), CBI (€95bn). The €90bn from the CBI is composed of €50bn of existing “Other Assers” plus €40bn of redemption of debt plus €5bn of NAMA funding. The €100bn of ECB funding is the estimated ELA being provided to the domestic Irish banking system (as opposed to the €132bn which is provided to all Irish-located banks including those in the IFSC which don’t service the Irish economy). Plainly much of the bailout is for shoring up fleeing deposits and is apparently underpinned by assets held by banks.

source :http://wp.me/pNlCf-Wi

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