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Posts tagged ‘Gavin Sheridan’

Judge Kelly on Anglo and the ODCE

By Gavin Sheridan

 I couldn’t let this pass without putting it in full here (emphasis mine):
JUDGMENT of Mr. Justice Kelly delivered on the 10th day of May, 2011
Introduction
The collapse of Anglo Irish Bank Corporation Limited (Anglo) has had profound and serious consequences for the economic wellbeing of this State and its’ citizens. It has caused much hardship to many small shareholders who invested in it in good faith. It played no small part in seriously damaging Ireland’s business reputation throughout the world.
In such circumstances, one could reasonably expect that the relevant authorities in the State would carry out a comprehensive investigation so as to ascertain whether any breach or breaches of the criminal law might have occurred in respect of the activities of Anglo and those who were responsible for it.
The applicant (the Director) has indeed been carrying out an investigation together with the Garda Bureau of Fraud Investigation and it is that investigation which gives rise to the current application.
The application concerns the treatment of material which was obtained on foot of warrants granted by the District Court to the Director in February, March and September 2009. This involved the use of what is statutorily described as an “extended power of seizure”.
In this application, the Director seeks orders pursuant to s. 20(2G)(a) of the Companies Act 1990 as inserted by s. 5 of the Companies (Amendment) Act 2009 to extend the period specified under s. 20(2I)(a)(i) to deal with such material for a further period of six months from the date specified in a similar order which I made on 9th November, 2010. A second order is sought in the same terms in respect of potentially legally privileged material.
This is the sixth time on which the Director has applied for orders of this type. The first occasion was in October 2009.
The Application
The statutory provision relied upon by the Director provides that an application may be made to the court by the Director or any person affected by the exercise of an extended power of seizure. An extended power of seizure was exercised in the present case and that is not in contest. In such circumstances, the Act provides that the court “may, if it thinks fit and having had regard, in particular, to any submissions made on behalf of the Director with regard to the progress of any investigation being carried on by the Director for the purpose of which the powers under this section had been exercised, give one or more” directions (my emphasis). The direction which is sought here is a further extension for a period of six months within which to deal with the material which has been the subject of the extended power of seizure.
At earlier hearings, I directed that if further extensions of time were to be sought, the court would have to be apprised of the progress being made in the various investigations which are being carried on.
The Investigation
Five issues have been identified which are the subject of investigation by the Director and the Garda Bureau of Fraud Investigation.
They concern:-
(i) the provision of financial assistance by Anglo to a number of persons in 2008 to enable the purchase of Anglo’s shares in circumstances which may have contravened s. 60 of the Companies Act 1963;
(ii) the provision of loans by Anglo to its former directors and the regular “warehousing” in Irish Nationwide Building Society of certain loans made available by Anglo to some former directors at the end of Anglo’s financial year thereby misleading the auditors in circumstances which may be contrary to provisions of the Companies Acts 1963 – 1990;
(iii) a “back-to-back” deposit arrangement undertaken with Irish Life and Permanent Group for the benefit of Anglo at the end of Anglo’s financial year in September 2008;
(iv) the provision of a loan to a director of Anglo in circumstances which may be contrary to common law and s. 297 of the Companies Act 1963; and
(v) the communication of possible false or misleading information in certain Anglo public statements in 2008 which may constitute breaches of the Transparency (Directive 2004/109/EC) Regulations 2007 and the European Communities (Admission to Listing and Miscellaneous Provisions) Regulations 2007.
I will consider each of these issues in turn.
Issue (i)
In sworn testimony which was put before me in November 2010, I was informed that insofar as this issue was concerned “substantial progress has been made, and the Director expects that the investigation of this item will be substantially completed at the end of the year”. That was the Directors own time estimate and not one in any way imposed by the court.
In an affidavit dated 19th April, 2011, in support of this application, I was told that a report relating to certain aspects of this issue was forwarded to the D.P.P. on 24th December, 2010 and that a file was sent to the same officer on 14th March, 2011, following what was described as “the substantial completion of this investigation”. The file was seventeen volumes in size and consisted of some eight thousand pages.
I am informed that the investigation file with the D.P.P. is about 90% complete. Despite the “substantial completion” of the investigation, there are a number of important interviews which have yet to be concluded and some other unspecified work which remains outstanding. Only when this is done will the Director be submitting this additional evidence to the D.P.P.
In December 2010, the Garda Bureau of Fraud Investigation furnished an investigation file in respect of market abuse matters in relation to this issue to the D.P.P. It is under consideration by that officer. I am not given any information as to what has happened to this since December 2010.
However, I am informed that further documentation is required to complete this investigation and this involves documents in respect of which the provisions of the Bankers’ Books Evidence Acts will have to called in aid. In addition, the investigation continues to involve the use of mutual assistance procedures in the United Kingdom in order to obtain evidence and statements from a number of persons.
I confess that when the affidavit evidence of last November was put before me and I was told that this investigation would be “substantially completed” by the end of 2010, I took that to mean that papers in final form would be placed before the Director of Public Prosecutions for his decisions at that juncture. That clearly is not the case.
Issue (ii)
In November 2010, I was told under oath concerning this issue that “substantial progress has been made and the Director envisages that the investigation of this item will be substantially completed by the end of March 2011”.
In an affidavit dated 19th April, 2011, I am told that the position concerning this issue is that:-
“Further analysis of documents will be required and a significant number of witnesses (approximately fifty) remain to be interviewed. The ODCE investigation is progressing well and every effort is being made for its completion by the end of 2011”.
This is remarkably different to what I was told last November. Instead of the investigation being “substantially completed by the end of March 2011” there is now no more than an assertion that every effort will be made for its completion by the end of 2011.
I am at a loss to know how the original time estimate could have been given, as even now, in May 2011, fifty witnesses have yet to be interviewed.
Issue (iii)
In November of last year, I was told that it was anticipated that this investigation would be substantially completed at the end of that year. A file was indeed furnished to the D.P.P. on this topic in December 2010. However, I have been given no information as to what has occurred since then. I do not know whether the D.P.P. is still considering the matter, whether he has issued directions or has made any decision at all on the topic.
Issue (iv)
In this case a file was also sent to the D.P.P. at Christmas 2010. No further information has been furnished as to what has been happening since then.
Issue (v)
I am told that a report was furnished to the D.P.P. on this matter in December 2010. However, as the investigation is largely interconnected with the events which are the subject of the issues at (i) – (iv) above, this investigation apparently cannot be completed until those investigations are at an end.
Discussion
I accept, as I have done before, that the task of conducting these investigations is a difficult one. It involves consideration of large numbers of documents both in hardcopy and electronic form. The electronic documentation has to be processed and that is complicated and time consuming. Some people have been uncooperative in making statements. Others have made commitments to give statements but have not yet done so. Other individuals have simply refused to cooperate at all. I also accept matters may arise during an investigation which put time estimates out of kilter.
Very considerable resources have been made available with a view to making progress on these inquiries.
Notwithstanding all of this, however, it has to be borne in mind that the genesis for this application was the execution of search warrants issued by the District Court as far back as 23rd February, 2009.
Now, more than two years after that event, the investigation is still continuing and I have been unable to obtain anything like a firm estimate as to when it is going to be brought to an end.
The self-selected estimates of time which were the subject of the testimony given to me in November of last year have proven to be inaccurate to a substantial degree. For example, I simply do not understand how in relation to Issue (ii), I was told that the investigation would be substantially completed by the end of March 2011 when now in May 2011, fifty witnesses remain to be interviewed. The best that I can be told by way of estimate is that every effort is being made for the completion of the investigation of this issue by the end of 2011.
This case may be unique as to its complexity and the volume of material that has to be assimilated but it is certainly not unique in its speed, or rather lack of it. Over the last few years, I have sent papers for consideration by the relevant investigation and prosecution authorities in a number of Commercial Court cases where judgments for many millions and indeed tens of millions of euros were given against individuals where there was prima facie evidence of criminal wrongdoing on their part. In some such cases admissions of wrongdoing were made. Despite the fact that years have passed since the papers were referred to the authorities, no prosecutions have ensued and little appears to have been done. I am not alone in my sense of disquiet in this regard. In his judgment of 13th April, 2011, in Kelly v. Byrne, Clarke J. said in respect of the defendant in that case:-
“It is of some relevance to note that Mr. Byrne made full and frank admissions in the witness box as to the practices in which he was engaged and his acceptance that those practices were unlawful under many headings. I do have to comment that, in the light of those admissions, it is very surprising indeed that no further action against Mr. Byrne seems, as yet, to have been taken.”
This is not a desirable state of affairs. An apparent failure to investigate thoroughly yet efficiently and expeditiously possible criminal wrongdoing in the commercial/ corporate sector does nothing to instil confidence in the criminal justice system as applicable to that sector.
Conclusion
I acknowledge again the huge volume of material that has to be considered in the present case and I do not underestimate the complexities involved. Despite that, in excess of two years investigation without any appreciable result is not at all satisfactory.
I am prepared to exercise the discretion which is vested in me under the statutory provisions in favour of the Director on this occasion. I am not, however, prepared to grant an extension of six further months as sought. I will grant an extension until Thursday, 28th July, 2011. On that occasion, I expect much progress to have been achieved. If a further extension is to be sought, I expect to be furnished with much more detailed information as to the progress of the investigation of these various issues. In particular, I will require to know what progress has been made in respect of the material sent to the D.P.P. in December 2010. I will also expect more accurate estimates of time as to the completion of these investigations than have been furnished to date.

source:http://thestory.ie/

Comment:

Almost 3 years have passed and we still haven’t even begun criminal proceedings against the Directors of Anglo, All of the Culprits that were conspiring to defraud their own shareholders by their fraudulent support of the Anglo Irish Bank Stock. Insider trading that resulted is wholesale fraud and the collapse of the confidence and good name of Irish Life and permanent whose Directors were responsible in the dubious attempts to support Anglo Irish Banks stock.  All of the Directors of the Various Banks have questions to answer s but as this is Ireland none of them will ever see the inside of a court room except if they bring a libel case brought against me because of this comment .This state of affairs clearly shows that the well connected in this Ba-NAMA- Republic are been protected from prosecution and the means is to slowly drag out this process for as long as possible and eventually have all investigations dropped! Why? Because the rot goes all the way to the top

Brian Lenihan , Brian Clown and Berti Ahern are ultimately responsible for this disaster and they should all 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

Toggle Description Description

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

The Story.ie & NAMA

received to0day

Here at machholz we believe we are duty bound to help fellow bloggers in their attempt to expose anti democratic behaviour or the attempt by public bodies to hide information that is supposed to be available to public scrutiny. This latest posting is a perfect example of such a case  and Gavin deserves all possible support and if you haven’t done so already please donate to this cause  

Posts by: Gavin Sheridan

Readers may recall that at the start of this year we submitted two  Environmental Information Regulations requests (EIRs, not FOIs). One was sent to the National Asset Management Agency and the other was sent to Anglo Irish Bank Corporation Limited – the nationalised bank. Both organisations replied by saying that they did not consider themselves to be public authorities for the purposes of the Regulations.

I have already blogged extensively about our argument with NAMA, that we believe it is clearly a public authority for the purposes of the Regulations. For a chronological look through that argument try these links

NAMA denies status as a public authority April 21, 2010
NAMA submission April 22, 2010
NAMA status June 30, 2010
Is NAMA a public authority July 27, 2010
NAMA reply August 1, 2010
The NAMA saga continues September 27, 2010

We are now awaiting a binding decision by the Office of the Commissioner for Environmental Information in relation to NAMA’s status as a public authority for the purposes of the Regulations.

Events have also now moved forward in relation to Anglo Irish Bank. In February this year I started the process by seeking information from Anglo in relation to its loan book, and to the travel expenses of its executives. Anglo denied it was a public authority and I appealed the decision to the OCEI. I have now received a copy of Anglo Irish Bank’s submission to the OCEI giving its legal argument as to why it believes it is not a public authority.

However, Anglo has sought to exert confidentiality over its 16-page legal submission (a copy of which I and the OCEI have), stating that the submission contains:

details of the management of the bank, its relationship with the Minister for Finance and the relationship framework established under the Anglo Irish Bank Corporation Act 2009 constitute confidential management information which should not be disclosed further than is necessary for the purposes of dealing with the appeal to the Commissioner

The OCEI have stated that they have not formed a view on the status of the information contained in the submission. However with the help of a very dedicated individual we have now drafted and completed our reply to Anglo’s submission. We will be publishing our submission shortly. We are unsure as to the status of Anglo’s submission in legal terms – but will seek advice from OCEI about whether we have a legitimate right to publish their submission.

The crisis comes to pass

Posted: By Gavin Sheridan

of  www.thestory.ie 

We have warned time and time again that Ireland was facing a massive fiscal crisis, both on here and on Twitter. We took a look back through the archives to see what we might have called right over the last number of months:
September 11, 2009: ‘A floor in the market’
We questioned just how much nonsense Finance Minister Brian Lenihan spoke in September 2009, where he argued that Ireland had neared the floor in the housing market. Of course, NAMA set its floor in November 2009, and prices have fallen ever since – leading to yet more losses for the taxpayer. We quoted him:
“If a flood of property is dumped on the market, it will be utterly unsustainable. That is one of the reasons we must establish NAMA and try to establish a floor in the market. We are very near it on the basis of the figures and data we have about the yield from property. The yield is at an all time high relative to the assets, which is a clear objective economic indicator that we are approaching the trough. We must banish our devils, the suggestion that we have further to go. That is part of the problem and the reason for the illiquidity in the housing market.”
There is no doubt that everything said there was a fiction, and it was patently obvious at the time.
December 24, 2009: Morgan Kelly on how we got here
Morgan Kelly published a paper at Christmas 2009, in which he outlined the looming bank crisis and the coming massive mortgage crisis. It was universally ignored. We highlighted it at the time:
I can’t really add much to Mr Kelly’s excellent analysis. What it says to me is that the next 12 to 18 months are going to be among the most difficult, if not the most difficult, time this country has faced. I encourage everyone to read the entire document.
I will emphasise his conclusion:
Despite having pushed the Irish state close to, and quite possibly beyond, the limits ofits fiscal capacity with the NAMA scheme, the Irish banks remain as zombies whose only priority is to reduce their debt, and who face complete destruction from mortgage losses. The issue therefore is not whether the Irish bank bailout will restore the Irish banks sothat they can function as independent commercial entities: it cannot. Rather it is whether the Irish government’s commitments to bank bond holders when added to its existing spend-ing commitments, will overwhelm the fiscal capacity of the Irish state, forcing outside entities such as the IMF and EU to intervene and impose a resolution on the Irish banking system.
February 4, 2010: The Coming Crisis?
It might be news to some people, but the purchasing of Irish bonds by Irish banks was highlighted a long time ago. We highlighted along with many others that Irish banks were buying Irish sovereign bonds and using them as collateral at the ECB. We also emphasised that Ireland was in as worse, if not a worse state than Greece – just that the markets had yet to pay attention to Ireland:
If you thought all of the problems had been sorted, then think again. There are really big problems coming down the road, and very few people seem to be talking about them. So let’s look a little closer at the potential fiscal problems Ireland, and our banks, face.
Everyone is talking about Greece right now, but to me Ireland is no different. It is probably worse. So with these deadlines looming, what is happening? Over the past number of weeks you might have noticed various headlines to do with NAMA delays. Why is this important? Could it be that unless the banks can transfer these junk ‘assets’ from their books, they could face funding difficulties on non-ECB markets?
I could well be wrong, or even cynical, but my feeling is that banks are desperate to get this stuff off their books, in order to be better able to fund themselves after the ECB shuts the discount window. If they don’t get them off their books, and onto the backs of the taxpayer, the banks could simply end up going to the wall, or simply being nationalised.
If you’ve read Morgan Kelly’s excellent analysis of the Irish credit bubble you will be aware of the Irish banking system’s over reliance on international money markets for funding. When the financial crisis hit in September 2008, these money markets froze and Irish banks struggled to get day to day funding. This is what ultimately led to the bank guarantee, and to the opening of what’s called the ECB discount window.
Banks all over Europe were struggling with funding, so the ECB essentially enacted emergency measures to help fund the banks. Irish banks were one of the biggest beneficiaries of the discount (the interest rate charged by the ECB is sometimes called the discount or repo rate). Ireland’s banks have effectively been kept on life support by the ECB since 2008, as McWilliams also noted last year. Essentially Irish banks were buying NTMA-issued sovereign bonds with short-term lending, presenting that as collateral to the ECB and then borrowing cheaply from the ECB. Summed up here – 25% of our deficit in most of 2009 was indirectly funded by the ECB.
When you combine the shutting of the discount window, with the delays in NAMA transfers and ultimately our own State borrowing (indeed we have already borrowed €6.5bn so far this year – 33% of our bond issuance for this year was done in January) and with the likely writedowns of not 30% but 50% on the loanbooks, we are facing a serious crisis. And of course the other factor is the ECB raising interest rates at a time we need them to stay low.
My questions is this: how are we going to pay for all of this?
February 22, 2010: Delay and Pray
This actually sums up how the Irish banks, especially Anglo, have been dealing with our property developers. Rolling over interest, not writing down the loans, not crystalising the losses, doing repayment deals with developers – to drag it out – extending and pretending.
Here it is in a nutshell: NAMA is one massive “Delay and Pray”.
Given that our banks are insolvent, that they are facing massive liquidity issues with the imminent closure of the ECB discount window, they cannot keep the pretence of extending and pretending up forever – and NAMA is, or was supposed to be, the answer to their prayers. You could also argue that Bank of Ireland recently changing its fiscal year was part of this tactic.
The Government would take the crappy loans from the banks (rather a lot), and through some financial voodoo, the losses would still not be crystalised, and rather ingeniously – the debt would not appear as sovereign debt for Ireland, or as debt for the banks, but would instead be dumped into this NAMA bad bank.
And NAMA has one sole purpose – keep the pretence going that someday, somehow, the value of the underlying assets will return to peak prices. Delay and pray. Do not write down the loans. Do not accept the reality of the losses. Do not pass go.
Not only is it unlikely that this will happen, it is almost impossible. Morgan Kelly wrote in December that it could take 50 years for the underlying assets to return to 2006 prices. Last week, in the High Court, we saw development lands being written down by 60% to 98% (in terms of valuation, not borrowing). These figures are the reality of the lands that NAMA is taking charge of. And we are overpaying already. How long do you think it will take rezoned agricultural land bought for €13m at peak, revalued at €600,000 in 2010, to return to €13m? The answer is: it won’t. So much land was rezoned that there is no necessity for rezoning for a further 70 years in many counties. Add to that the 300,000 vacant properties. Add to that little demand. Add to that zombie banks unable or unwilling to lend.
This is the reality of NAMA. Delay and pray.
It logically follows that where the banks lent money with no obvious collateral to back the loan, and where the supposed value of derivative is now zero, the bank sustains a massive capital loss.
However the banks are simply delaying and praying until NAMA takes over the loans, and then NAMA continues the praying.
We are in for one hell of a fiscal mess.
If you hear spin that no one saw this coming, don’t listen. There were plenty of commentators and plenty of warning signs. Unfortunately many people chose not to listen.

Comment:

I too have been warning about this now for the last 20 months and it is  with great sadness that I now see come to pass, my worst fears although I believed we would have been past the worst by now the establishment of the greatest fraud in Irish history (NAMA) has in fact help postpone the worst effects of the now oncoming second phase of this financial disaster yet to be faced by Irish people.

The Current economic terrorists in the Department of Finance have successfully placed private debts of a Golden Circle on to the hard pressed shoulders of the Irish people and they have helped these same gangsters whisk away their ill-gotten gains all across the world .They have also compensated some of them by promising to pay them a salary of up to 200,000:00 Euros a year .This is sheer madness!

Why is nobody doing anything about this crazy stuff? Anywhere else in the world these gangsters would be in jail!

We the Irish people have seen out rights enshrined in the Constitution trampled all over because of political expediency, we have been lied to and robbed by people whose job was to protect the and uphold the constitutional rights of all the citizens of Ireland. Instead they have blatantly placed the financial welfare of a select few above the welfare of the nation and are in the truest sense traitors

They have betrayed the trust of people of Ireland and must be removed from office

A general election is desperately needed now and only candidates that promise to bring these traitors to justice should be voted into office.

Sadly the established political parties are remaining quite on this particular point and there are no calls coming from them to prosecute their colleagues in the Dail

Last night on Front line Pat Rabbet hinted that he would consider going into power with the Green Party

These are the same gutless gangsters that have sold out on every one of their own core values just to stay in power with the current government. Let this be a reminder why we need to have a complete change in the political system unfortunately none of the established political parties want to bring about this change, as it would be akin to asking Turkeys to vote for Christmas they are part of the dysfunctional political system we are saddled with and cant wait to get their hands on the lucrative perks and pensions heading there way by default  .

Accounting gimmickry at the Dept Finance ?

    

 Originally Posted:

By Gavin Sheridan 11 Nov 2010 02:42 AM

http://www.thestory.ie

Last month Anglo confirmed that it had repaid €7.9bn in bonds at the end of September. According to the Irish Independent:

Banking sources yesterday stressed that there was never any question of Anglo not repaying the debt that fell due in September, since the bank is legally obliged to pay government-guaranteed debt.

The Department of Finance categorically rejected suggestions that it had been involved in any deal to refinance Anglo’s balance sheet, stressing that funding matters are handled by the bank.

The exact details of the September refinancing are unclear but it is understood that the bulk of the money came from the ECB, with Anglo pledging various securities as collateral.

Market sources stress that this is the normal way for Irish banks to refinance bonds that fall due, given the state of the international markets.

A spokesman for the Central Bank said “all of the guaranteed bonds issued by Irish banks have been repaid by the Irish banks as they fell due”.

Here is a spreadsheet from the CB. Look close at the ‘other assets’ and notice the jump from August to September. In August the other assets of our Central Bank amounted to €14,378 million. By the end of September, the figure had jumped to €21,195 million, a jump of €6.8bn. Historically, this is the biggest jump in other assets, excluding the period around Anglo nationalisation (Feb 2009) and the period around the Northern Rock crisis (September 2007). But what better illustrates this is a graph. So here is a timeline of ‘other assets’ of our Central Bank from 2003 to September 2010:

So the question is: Where did Anglo Irish get €7.9bn to pay back bondholders, and did our Central Bank foot the bill? And how involved were the ECB in this transaction? If the CB did what it looks like they did, we essentially just transferred the ‘asset’ from one state agency to another.

source http://www.thestory.ie

Comment:

Lenihan is just shifting figures from one corrupt state institution to another.

Accounting gimmickry at the Dept Finance ?

Anglo and Lehman

Anglo and Lehman

By Gavin Sheridan

A common refrain heard from representatives of the Government is that Anglo Irish Bank had to be saved in September 2008; else it would have brought the entire banking system down with it. Government ministers consistently and still come on air to tell us that Anglo was systemically important and that we had to save it. Just look at Lehman Brothers, they say, look at the disaster Lehman caused.
Yes Lehman collapsed. Is the US better or worse off as a result, two years later?
Ben Bernanke, the Fed chairman, has said something rather interesting in the context of Lehman:
“I regret not being more straightforward there because clearly that has supported the mistaken impression that, in fact, we could have done something. We could not have done anything.”
Bernanke told the Financial Crisis Inquiry Commission that any loan the Fed could have provided Lehman would not have stopped a run on the bank by customers.
“If we lent the money to Lehman,” Bernanke said, “we would have saddled the taxpayers with tens of billions of dollars in losses.”
So if the US government had saved Lehman, it would have saddled taxpayers with tens of billions of dollars in losses.
Except in Ireland, we did save our Lehman, leading to tens of billions of euros in losses for the taxpayer.
And what have we got to show for it?

Comment:
Saving Anglo was in most Irish people’s minds was a total disaster and the only explanation why Lenihan and Clown nationalized was that they are completely incompetent or at worst they did it to save their Galway tent gombeen pals in the building industry
Either way they have destroyed our country and I believe they are guilty of treason!
At this stage at least a hundred people have taken their own lives as a direct result of the illegal actions they took .They have saddled me and the rest of the nations family’s with the debts of unscrupulous gamblers within the banks and the building industries
I refuse to lie down and just take it. We as a people must stand up and say no the corrupt bankers. The gambling and corrupt bankers and multi millionaire developers must bail themselves out and not expect the taxpayers of the nation to do so: The economic treachery of the current government must not be forgotten and in time the culprits and their cronies will have to pay the price for this treachery!
The ultimate result of the government’s bailout of their pals has been the socialization of private debts. In effect the plunder of the public purse for the benefit of a select few, a golden circle without any concern of the ability of the nation to service this extraordinary debt in the first place
No amount of media spin, with help from their lackeys in the pay of the government can fool all of the people all the time. More and more people are beginning to see through the lies we are been told on a constant bases by the clowns in Government and their supported agencies Like Anglo Irish Bank, and NAMA

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