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Posts tagged ‘Enterprise Ireland’

AIB top staff share €40m in bonuses just before Christmas.

Executives at AIB — the bank taxpayers have bailed out to the tune of €3.5bn so far — will share €40m in bonuses just before Christmas.

In a move certain to spark fury, the bank has decided about 2,400 staff must be paid the bonuses for legal reasons after several of them took court action.

Cheques for an average of €16,700 are likely to be sent out to executives on December 17. Staff last year received €54.9m in bonuses.

Paying the bonuses — for work at the height of the financial crisis — comes as taxpayers are smarting from having their incomes slashed in the Budget.

Shareholders are also likely to be furious after their AIB shares tumbled from €23.95 to just 50c over the last two years.

Ironically, the bonuses are for work done in 2008 when the bank came close to collapse before the Government stepped in with a taxpayer guarantee.

AIB’s shares have fallen by almost 60pc this year alone.

It is understood a large number of AIB staff have now taken legal action seeking their bonuses, agreed under contracts signed before the economic crash. A few weeks ago analysts put the total cost of the bonuses at no more than €10m, but this has now quadrupled. AIB declined to comment last night.

The €40m bonus is a significant chunk of the bank’s market value these days. The stock exchange values the entire bank, which was once the largest Irish bank until it was eclipsed by Bank of Ireland, at just €540m.

While the bank and the Government have halted so-called “discretionary” bonuses, it appears they have no legal power to stop bonuses included in the contracts of individual staff members.

Only yesterday, Finance Minister Brian Lenihan said he thought it was unlikely bonuses would be paid out for some time at the banks. He said until the banks were profitable again and made a “return” to the taxpayer, he didn’t think any bonuses would be sanctioned.

Despite this, the €250,000 semi-state pay cap announced in Tuesday’s Budget will not apply to bankers in state-owned institutions. This means those in charge of failed state-owned banks will still be able to earn twice as much as those in charge of successful state-owned companies.

The Department of Finance last night confirmed in a statement that it was “not intended that the (€250,000) cap apply to state-supported banks”.

It’s not the first time the bank has paid its own employees extra while the rest of the country was tightening its belt. In October last year the lender hiked salaries for 5,000 Irish employees by 3pc.

Targets

The taxpayer has already spent €3.5bn propping up AIB but the eventual size of the bailout is likely to be much larger. The bank said last week that it will need to raise €5.3bn of additional capital by the end of February to reach targets set by the Central Bank.

Most analysts expect the bank won’t be able to raise this amount, which will force the Government to effectively nationalise it.

The Government has also helped the bank by creating the National Asset Management Agency (NAMA) to buy distressed property loans — a plan by which NAMA “invests” billions to buy AIB loans after years of reckless lending. That money, like the bailout money, may or may not be recovered in future.

The revelations came as it emerged that the UK’s rescue loan to Ireland could increase if the economy here runs into trouble. Chancellor George Osborne conceded this yesterday as he refused to rule out similar action to help other troubled European states.

Mr Osborne said emergency legislation would be published today capping Britain’s loan at £3.25bn (€3.87bn). However, the bill will include a clause allowing the ceiling to be increased, subject to a vote in the Commons.

– Emmet Oliver and Thomas Molloy

Irish Independent

Comment:here is another example of another cronie working with the banks

Bruton’s attempts to ‘sell’ Ireland slammed in Dubai Eamon Quinn

 
 

IFSC chairman and former taoiseach John Bruton: trying to attract more international banks to Ireland

Senior bankers in Dubai have criticised the timing of a presentation tomorrow by Irish government officials called ‘Ireland, the Financial Services Gateway to Europe’ because television in the United Arab Emirates has for weeks blamed Irish banks for helping to bring the euro to the edge of destruction.
The presentation by former taoiseach and EU ambassador to the US, John Bruton, who is also chairman of IFSC Ireland, in the Godolphin Ballroom in the Emirates Towers Hotel, one of the most expensive venues in the region, is part of the newly-created task force to attract more international banks to Ireland. But a senior banker complained that the timing could not have been worse.
“People in the financial services industry here are looking at Ireland as an economic disaster that was extremely badly managed by the government,” he told the Sunday Tribune.
“Remember that many industry professionals and investors got badly burned during the Dubai property crisis, which pales into insignificance compared to the Irish banking system. People are not going to be swayed by attempts to sell Ireland right now,” he said.
The banker said the idea of promoting Irish expertise and its position within the eurozone was a good idea “but not at this time”.
The conference, which had attracted 60 visitors, was important as a way to dispel negative headlines about Ireland, a spokesman for Enterprise Ireland said.

Comment:

Coming one day after the most draconian budget in the history of the state again we see that Lenihan and Cowen are looking after their pals .The Labour party does not come out of this smelling of roses either as Sticky Dick Spring along with Declan Collier

is supposed to be the government appointed watchdog director’s for the taxpayers but as I have pointed out in earlier postings these cronies have gone native on us, just like Allen Dukes over at Anglo Irish Bank.A distinct flavour of I’m all right jack and thanks for the gig lads.

Then we have former taoiseach John Bruton

(This is the Gob**** that only a few weeks ago announced to the world that Ireland would payback every penny that our banks owed, this was the time Cowen and Lenihan were telling the Irish people that there was no need for us to go to the IMF or the EU ).We now know that the Irish banks have already borrowed 165 billion from the EU so far this year .Is this guy working for Goldman Sacks? It does tell you something when we have a former taoiseach in a position of chairman of one of the world’s largest front for hot money .The IFSC has 2.8 Trillion sitting on deposit and the government of Ireland gets a big fat zero .I wonder why? a charge of 1% would bring in 28 Billion into the government’s coffers overnight with Bruton loud mouthing the bankers cause it’s no wonder the government are afraid to tackle this obvious source of revenue .

X politicians working for the big banks says it all ! 

Don’t believe Cowen’s lies!


The economy has reached a “turning point” with the worst now over, The Unelected  Taoiseach Brian Cowen said.

How many turning points have we now turned ? anymore and we will all get dizzy!

Get real ,things are getting worse! talk to the 556,000 now on the dole scrapheap!

Talk to the social welfare recipients, expected to live on a fraction of the money you and your band of gangsters in the Dial are creaming on expenses!

Tell that to the unfortunate sick citizens lying on trolleys and are been denied basic services in the hospitals of the country that you and the criminal Harney are still advocating more cuts for!

In an address to a Fianna Fail meeting in Athlone,Cowen said the challenge is to now move with confidence and ambition into a new phase of recovery and renewal. (This is just political tripe)

The Unelected Taoiseach said Ireland was returning to growth and seeing an upturn in confidence.

“While we face another difficult budget ahead,(Code for more social welfair cuts,an easy target) for the Irish economy the worst is now over,” he said.

Mr Cowen said creating jobs was the backbone of the Government’s economic strategy.

He said Enterprise Ireland was working to create 40,000 jobs over the next five years, (8,000 each year) which would lead to an additional 28,000 jobs elsewhere in the economy.

Don’t believe the tripe coming from this gangster; I cannot believe the figures coming from the so called poll either!

This gangster and his cronies in the Dail have plundered this country and he and the other economic traitors deserve to be hanged for what they done

People of Ireland do not believe the vested interests who own the national news papers

They are afraid of a people’s government one that will bring real hope for the futures of all of us now consigned to the scrap heap by Cowen and his band of gangsters

Don’t be fooled by cowen’s pals in the news rooms

Help get these, the real leaches off our backs!

Support the demonstrators outside the Dail next Tuesday at 19.00 hrs and let your voice be heard

we want a General election Now!

 

Exposing the golden circle

 

A network of 39 individuals held powerful positions in 33 of 40 top public organisations and

Private Irish businesses in three of the critical Celtic Tiger years (2005-2007), and held more

Than 93 directorships between them in these companies during this period; as well as an

Average of ten directorships each in other companies.

Focused on the years 2005-2007, the research shows that each of the 39 members of this

‘Director Network’ held multiple directorships on at least two boards across 33 of the 40

companies concerned.


More than a quarter (eleven) of the 39 members of the Director Network were particularly

well-connected. They had ten or more links, via these multiple directorships, to other

members of this Network and/or sat on three, four or even five boards of the top 40 companies

simultaneously.

In addition to holding multiple directorships, a significant proportion of the Director Network

held very senior full-time positions, either as CEOs or executive directors or equivalent

positions.

Over half of the members of the Director Network held board positions in at least one of

Ireland’s four largest financial institutions: Anglo Irish Bank, AIB, Bank of Ireland and Irish

Life and Permanent. The three most tightly-interwoven of all 40 boards were all financial

Institutions.

Full PFD report a must read! Map of Golden Circle

 by 

Paula Clancy, Nat O’Connor & Kevin Dillon

 

 

http://www.tascnet.ie

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