What is truth?

Posts tagged ‘Irish Bank Resolution Corporation’


By Diarmuid O’Flynn


When Michael Noonan announced his Promissory Notes ‘deal’ in February of last year it was hailed by our media as a triumph. ‘Promissory Notes destroyed!’ screamed the headlines; ‘€20bn saved over the next ten years!’

Big news indeed, but what our media didn’t tell us was even bigger.

1) The Promissory Notes were indeed destroyed, the little bits of paper the ECB had accepted at their convenience to bail out the European big-bank creditors of two bust Irish banks, Anglo and Irish Nationwide; the Promissory Notes debt wasn’t, not a cent of it.

2) On the €20bn ‘saved’ over the next ten years – absolutely not true. If you buy an item that’s been reduced from €40 to €20, you have saved €20; if you alter a debt schedule so that you pay €20bn less in the next ten years but pay €60bn over the following 30 years, that is not ‘saving’ €20bn.


What Michael Noonan did was this; to take the pressure off his budget for the remaining years of this government from 2012 onwards (because had had actually pulled this same stunt for the 2012 Promissory Note – a practice run, if you like), he restructured the Promissory Notes payment schedule such that the burden of payment would be shifted from this generation to the next, and to the next. No more no less. 

It was betrayal, not just on a national level but on a human level – what parent, rather than challenging ‘totally’ illegal debt (Michael Noonan’s own description of the Promissory Notes), debt he had previously eloquently and forcefully rejected and simply to make life easier for themselves, passes the burden of payment to their own children and grandchildren? Under the terms of this deal, that is what Michael Noonan has done but not just on his own behalf – on behalf of us all. Thanks to Michael Noonan, that is the legacy of this generation of Irish people to the next.


There was something else we weren’t told, either by Michael Noonan or by our media, something of even greater import.

The money raised from the sale of the new Promissory Notes bonds, all €28bn of it (including the €3bn from the 2012 bond) is destroyed, every cent of it. Why? Why is a broke, massively-indebted small nation destroying the equivalent of the entire tax intake for 2010, the year the Promissory Notes were issued? Because the ECB, who facilitated the original issuance of those notes (feared contagion across Europe if any bank in the EuroZone was allowed fail), is insisting that the entire €31bn printed that year by the Central Bank of Ireland and given directly to the two bust banks to bail out their creditors, must now be taken back out of circulation. By us.

And it has started.

Buried in the back end of a report from RTE yesterday, Tuesday December 22nd, an early Christmas present for the nation. Again, as has become so typical for the official spinner of government half-truths, it wasn’t so much what was said, it was what was left unsaid.

‘Separately, the NTMA has announced the cancellation of €500m worth of bonds relating to the Irish Bank Resolution Corporation. The Irish Floating Rate Treasury Bond was issued as part of an arrangement that saw the Anglo Irish Bank promissory note replaced with new debt. Its issuance was part of the process that has ultimately led to IBRC’s liquidation. Today the NTMA purchased €500m worth of the bond – which was due to mature in mid-2038 – from the Central Bank. It said the cancellation of this amount will leave €1.5bn worth of the bond outstanding.’

Reading the above, would you have any idea that this country has just borrowed and destroyed €500m, dwarfing what’s going to be raised from the ill-fated (it will fall) Water Tax? But we have. ‘Cancellation’, that’s what the RTE report says; ‘destruction’, that’s what it means.


But there’s more – it’s a triple-whammy. As soon as that €500m was received by Patrick Honahan in the Central Bank on Tuesday:

  1. It was destroyed
  2. We start paying interest on it
  3. In 2038 the new bondholder (wouldn’t it be some irony if it’s one of the same bondholders we bailed out back in 2010???) will come looking for the entire €500m principal to be repaid.


The €500m borrowed/burned on Tue is just the start of the new Noonan P Note bond schedule.

  • 2014-18 (incl – five years): €500m/yr borrowed/burned
  • 2019- 23 (incl – five years): €1,000m/yr borrowed/burned
  • 2024- 31 (incl – eight years): €2,000m/yr borrowed/burned
  • 2032: €1,500m borrowed/burned
  • Meanwhile, €3bn bond from 2012 also sold, those billions also destroyed.
  • And all the while, as the bonds are sold the debt-clock ticks faster and faster, the interest increasing, the debt-burden piling up. Over the next 40 years, on the entire €31bn, we won’t have any change from €80bn. Some legacy.

No matter how you read it, it’s obscene.

In Ballyhea we’ve been protesting this for nearly four years, joined now every week in their own places in that protest by Charleville, Ratoath, Dublin. This coming Sunday, December 28th, is our 200th week. If this has angered you enough, if you have the time and the inclination, you’re welcome to join us in Ballyhea – 11.30am, at the church car-park.

What is going on in NAMA and Anglo. It is truly shocking!

Sent in to us to-day

When an Irish company is placed in liquidation, Irish com-pany law requires the directors of the company to produce a so-called ―statement of affairs‖ of the company within 21 days. This SoA sets out the financial position of the company at the date of liquidation and is in-tended to assist creditors in understanding their prospects for recovering any debt.


All standard so far, and this type of arrangement appears to exist in most advanced econo-mies, and Ireland certainly claims to be such an ―advanced economy‖

Yet , six months (that‘s 180 days) after the IBRC liquidation, and there was no sign of any SoA. A litigant in a case against IBRC, who would potentially become a creditor, sought the SoA without success. The liti-gant is hotelier Johnny Moran who is locked in a bitter dispute with IBRC on foot of the ap-pointment of receivers to his assets. With no sign of the SoA, Johnny went to the courts to force the directors – techni-cally, the members of the board which includes the chairman – to produce the SoA. The case was scheduled to be heard on 22nd July 2013, a Monday.


On the preceding Friday 19th July, 2013, Johnny served the former IBRC board members with summonses. There was what should be a memorable incident outside the Institute of International and European Affairs on North Great Geor-ges Street, when Johnny per-sonally placed the summons in the hands of Alan Dukes, for-mer chairman of Anglo/IBRC and former finance minister who should be more than famil-iar with requirements under company law. This personal service took place at 3pm.

Less than two hours after Alan Dukes was served with the summons, Minister for Finance Michael Noonan rushed out a letter in which he granted the former IBRC board members a waiver on their obligations to produce a SoA. Remember this was 180 days after the SoA was in fact due, and it was the first waiver provided by the Minis-ter. You can view the letter here, the list of recipients and their addresses is here though we have redacted some of the address details, the publication of which might give rise to Data Protection issues.


At the court hearing on the following Monday morning 22nd July 2013, Ms Justice Mary Laf-foy was presiding in the High Court where she heard Johnny‘s motions to compel the production of the SoA. She adjourned the matter ‗til after lunch when she decided that the Minister‘s letter prevented her taking any action. There is no written judgment in the matter, but those who attended the hearing report her saying she ―could not get involved because the Minister was in-volved‖, which didn‘t seem a satisfactory state of affairs in an ―advanced economy‖ where there is separation between the executive (the Government) and the judiciary. A coinciden-tal footnote to this matter was the appointment/promotion of Judge Laffoy to the Supreme Court three days later on 25th July 2013.

It was only a fortnight after the court hearing that Minister Noonan signed into law an Order pursuant to the IBRC Act 2013 which waived the obligations of the former IBRC board members, and gave them until 30th September 2013 to produce the SoA. That Order, dated 6th August 2013, is avail-able here, but it goes further than just granting an extension, it allows the SoA to conceal the names of the creditors………………………

Full article in PDF doc here: NAMA

A HIGH Court judge has cleared the way for aggrieved customers to initiate private criminal prosecutions against bank staff.


 In a landmark judgement, Mr Justice Gerard Hogan upheld the right of citizens to bring private prosecutions, after lawyers for Irish Bank Resolution Corporation (IBRC) claimed this right had been abolished 14  years ago.

His decision paves the way for a hotelier to bring a  private prosecution against two IBRC officials he claims behaved  dishonestly during discussions about a rescue plan for his business,  which has debts of €23m.

It is believed to be the first case of its kind since the banking collapse and could lead to a raft of similar actions.

“Employees of financial institutions never thought that they could be prosecuted  for their actions as bank officials,” one senior counsel told the Sunday Independent.

A summons has been issued to compel the bank officials to attend to answer allegations in a district court.

Once that hearing takes place, it will then be up to the Director of Public  Prosecutions to decide whether the case should proceed further.

“The underlying purpose of the private prosecution is . . . to draw the  public prosecutor’s attention to the case with the implicit request that the prosecution be taken over (by the DPP),” Mr Justice Hogan said in  his written judgement.

The ruling opens the way for disgruntled customers to take cases against officials at all levels of the banking sector.

However, legal experts warned there are dangers involved for people seeking  private prosecutions, as they could find themselves liable for  substantial legal costs if they fail.

The ruling came after one  current and one former member of IBRC staff sought a judicial review to  bring a halt to hotelier Pat Halpin’s private prosecution against them.

Mr Halpin, 62, has run hotels in Dublin and his native Clare for a quarter of a century, but got into difficulty in recent years over borrowings  with the former Anglo Irish Bank.

His businesses include the Aberdeen Lodge and Merrion Hall boutique hotels  in Ballsbridge, Dublin, and Halpin’s Townhouse in Kilkee, Co Clare.

IBRC last year appointed a receiver to two of his companies, Crossplan  Investments Ltd and Elektron Holdings Ltd, which look after his  interests in Dublin.

He claims he was invited to a  meeting with two IBRC officials in February last year – before the  receiver was appointed – to discuss the sale of Merrion Hall in a bid to pay down debt.

Mr Halpin says he and his accountant were left with the impression from the meeting that the matter would be  considered further “within the higher echelons” of the bank and that the bank would come back to them with proposals.

However, Mr Halpin claims he later learned it had already been decided by IBRC that a receiver be appointed to both companies.

He alleges a letter he subsequently received from the bank showed clearly  that both officials had known that a receiver was to be installed at the time of the meeting and had deliberately concealed this knowledge from  him.

Mr Halpin subsequently initiated a private  prosecution against the two officials in the district court – alleging  offences of dishonesty under the Criminal Justice (Theft and Fraud  Offences) Act 2001 – and succeeded in getting the court to issue a  summons against both. The charges have been denied by the two officials. Both went to the High Court seeking to halt the private prosecution,  claiming such prosecutions had been effectively abolished by the 1999  Criminal Justice Act.

They contended that there had to be a preliminary examination procedure for a private prosecution to take place.

The officials argued such prosecutions had been effectively abolished  because the Act did away with the traditional practice of holding a  preliminary investigation in the district court to determine if  sufficient grounds existed for sending a person forward for trial to a  higher court.

In his ruling last week, Mr Justice Hogan  disagreed and said the right to a private prosecution had not been  indirectly affected by the abolition of the preliminary examination.

The judge also said that, although he felt Mr Halpin’s case “seems slender  and tenuous”, he would not be justified in quashing the summonses.

Mr Justice Hogan cautioned it was also important to remember that the  charges had been denied in the most emphatic terms by the two officials  and they had yet to be heard on the merits of the complaints.

The judge said he would leave it to the DPP to decide whether the case should proceed or be dismissed.

He also awarded Mr Halpin 60 per cent of his costs. A stay has been placed on the private prosecution until January to allow the bank officials to appeal to the Supreme Court.

As yet, there has been no indication such an appeal will be lodged.

Law Library sources said the ruling was significant as it confirmed the  rarely used right of people to bring private prosecutions.

Any citizen with a reasonably credible complaint against somebody can walk  into the district court and convince a judge to grant permission for a  criminal summons, one senior legal expert said.

The  standard of proof for the issuing of a summons is low and those who were summonsed would, in all practical circumstances, have to challenge the  allegations made against them in court, the source added.

Mr Halpin told the Sunday Independent he was hopeful he would succeed in persuading the DPP to take up his case.

The businessman is also taking a separate action against IBRC for alleged overcharging to the tune of €2.6m.

source: Sunday Independent

IBRC executive to earn over €500,000

Bell Addresses Fine Gael Ard Fheis

Bell Addresses Fine Gael Ard Fheis (Photo credit: DUP Photos)

Another senior executive will join the former Anglo Irish Bank on Monday on an annual pay package of more than €500,000 in a deal that has been signed off by the Minister for Finance Michael Noonan.

He will be the seventh executive at the bank on a total package of more than €500,000 a year. Kevin Blake joins State-owned Irish Bank Resolution Corporation as chief risk officer and will sit on the bank’s executive committee.

The bank confirmed Mr Blake would be paid in line with the other senior executives at the bank, who are paid total remuneration packages of more than €500,000.

The Irish Times revealed earlier this week the names and pay of the bank’s five highest-paid executives – each on total remuneration of more than €500,000 – who report to chief executive Mike Aynsley at IBRC.

The Minister disclosed to Fianna Fáil TD Michael McGrath in a reply to a Dáil question that six executives were……………………………..

full article at source:http://www.irishtimes.com/newspaper/finance/2012/1110/1224326409819.html

Tonight with Vincent Browne and Sean Quinn

interview with Sean Quinn and among the questions we ask him are whether he was reckless in his management of the Quinn Direct Assuran…

This clip is really worth viewing so do hang in there and do look at it

see link : http://www.tv3.ie/3player/show/41/51511/1/Tonight-with-Vincent-Browne

I am just too sick to comment! Quinn is just in denial and the Irish tax payers are left as usual to foot the bill, while he and the rest of his family get paid by NAMA their “living expenses” .This guy tried to hide asses that were supposed to be collateral  for loans he used to purchase Anglo Irish Bank CFD’s.

High Court sanctions new Quinn family payments

The High Court has approved the payment of monthly living expenses totalling almost €30,000 to the five adult children of bankrupt businessman Sean Quinn and three spouses.

The court extended an injunction, on an application by the former Anglo Irish Bank, over Karen Woods, the wife of Mr Quinn’s son Sean Quinn jnr, preventing her from disposing of any assets in Ireland or abroad below the value of €50 million.

Mr Justice Peter Kelly also directed her to disclose all assets and bank accounts in her name on or before August 13th. She must also disclose any actions taken by her to put assets beyond the reach of the bank, which is now known as Irish Bank Resolution Corporation

full article at source: http://www.irishtimes.com/newspaper/breaking/2012/0731/breaking17.html

see also http://www.irishtimes.com/newspaper/finance/2012/0726/1224320827603.html?via=rel


Instead of going to Jail these crooks are getting paid ,What a country!What can I say ,you just could not make this up ,Living in this banana republic is a health hassart .Wake up Ireland and get these leaches off our backs !

Receiver appointed over Quinn’s worldwide assets


“mesmerisingly complex” scheme devised by bankrupt businessman Seán Quinn and members of his family to put multi-million assets beyond the reach of the former Anglo Irish Bank and “to feather their own nests” is the largest and most devious seen to date in the Commercial Court, a judge said today.

Mr Justice Peter Kelly said he has presided over the Commercial Court since 2004 and regrettably was having to deal more often with cases involving “national and international fraud, sharp practice, chicanery and dishonesty”. However, he had never seen anything like the conduct in this case.

He made the remarks when granting an application by Irish Bank Resolution Corporation, formerly Anglo, for appointment of Declan Taite as receiver over the worldwide assets of various Quinn family members and over various foreign companies allegedly involved in the asset stripping scheme and based in Belize, Panama, Russia and United Arab Emirates. The Quinns consented to those orders.

full article at source:http://www.irishtimes.com/newspaper/breaking/2012/0725/breaking46.html

Denying the O’Brien/Hogan meeting


OPINION: BARRING AN adverse ruling by the Competition Authority, the €45.5 million acquisition of Siteserv by the Denis O’Brien controlled Isle of Man-registered Millington, is a done deal.

Although only a small number of non-institutional shareholders turned up at the egm last week to vote on the deal, lingering questions remain.

To recap: Siteserv is a broadly based support services group that had revenues of €92.2 million in the six months to the end of October last and generated a pretax profit of €1.1 million. Siteserv includes companies such as Sierra, a provider of services to ESB, Bord Gáis, Sky and UPC; Roankabin, a specialist of temporary structures; and Deborah Services, a British construction services group. But it was struggling under the weight of €150 million of debt to Anglo Irish Bank built up during a boom-era acquisition spree.

The board of Siteserv called on shareholders to approve the €45.5 million bid from Millington, even though at least two other parties suggested they were willing to pay more. Siteserv’s corporate advisers have, however, suggested that there were conditions attached to the other deals, which were at a preliminary stage.

Under the deal, shareholders, including the current management team, would share €5 million, while the State-owned Irish Bank Resolution Corporation, which is managing the Anglo run-down, would get just €40 million of its €150 million debt.

In many ways the involvement of O’Brien and his long-time lieutenant Leslie Buckley is a distraction. Since the publication of the Moriarty report, which found then minister for communications Michael Lowry “secured the winning” of the second mobile phone licence in 1995 for O’Brien’s Esat Digifone, media scrutiny of all his activities has been intense.

O’Brien’s bid for Siteserv came as a surprise, given that most of his investments are in media and telecoms. But Sierra’s business supplying services to telecoms and cable companies could benefit O’Brien, while Eventserv’s experience in infrastructure for outdoor events might have benefits for his radio and other media interests.

then we have this from the story

Denying the O’Brien/Hogan meeting


From the Department of the Environment press office on April 4 after a query relating to an alleged meeting between Denis O’Brien and Phil Hogan a couple of weeks ago and any mention of Sitserv as it relates to any future water metering contracts/tenders.

The Minister had no meeting with Denis O’Brien in recent weeks or recent years for that matter.  As regards, water reforms – including the Prog for Govt commitment to install water meters, this is very much a matter for Govt and the Minister will be bringing forward proposals on same for consideration of Govt in the coming weeks.

full article at source: http://thestory.ie/2012/04/10/denying-the-obrienhogan-meeting/


What do you expect from Gombeen politicians ? This stinks to high heaven! Backroom deals ???



Restructuring the Irish promissory notes

I came across this excellent  article (explanation) on just exactly what Irish Jig; Michael Noonan is dancing to with regards to the restructuring of the promissory notes due for cash repayment.

By soberlook.com

In 2010 the Irish government bailed out (recapitalized) the Irish banks with 30bn euros. The government could not easily raise these funds in the market so it used promissory notes (PNs) instead of cash (sort of what California did when they paid salaries with IOUs during their “budget issues” in 09). These PNs are set up to pay a set amount over the next 20 years.
The promissory notes were used  as collateral with the Central Bank of Ireland to obtain central bank emergency financing called ELA. That collateral did not qualify for LTRO, leaving ELA balances outstanding. Since then the banks were “restructured” creating the Irish Bank Resolution Corporation (IBRC) – the “bad bank” to hold all the wonderful real estate loans and properties. Now IBRC owes the Central Bank of Ireland money under the ELA.
This year about EUR 3.1bn of PNs was due (on March 31st), but the Irish government was in no position to pay that in cash. Instead the goal has been to kick the can down the road  – as far as it can roll. The Finance Minister Michael Noonan has been trying for a while to restructure the PNs by swapping them into long-term government bonds. His negotiations with the EU/ECB have yielded only a partial result. He was able to roll just the 3.1bn due this year, but it required a fairly messy transaction. The issue is that the ELA financing is meant to be a temporary measure and the ECB wants it paid down asap.

full article at source; http://soberlook.com/2012/04/restructuring-irish-promissory-notes.html


This private bank debt was foisted on to the shoulders of the Irish citizens by corrupt politicians who were duped into a panic action by the superior corrupt bankers .This debt is not Irish national debt but private commercial bank debts incurred by the banks who went on a gambling spree with the help of their it turn equally corrupt backers (private bondholders)These Bondholders should have had to pay the consequences for their bad investments but as you can see in the article the ECB would not allow the Irish Government  make the bondholders pay for their own gambling losses they instead forced the Irish Government to socialize the private commercial losses by placing these massive losses on to the shoulders of the Irish taxpayers and citizens.

As a result the citizens of Ireland are now struggling to make ends meet ,hundreds of thousands of jobs have been lost ,1350 are leaving  the country every week, 450,000 are been denied the right to work ,the resulting austerity measures dictated from Europe are pauperizing the vast majority of the population and our corrupt politicians have abandoned their sworn duty to uphold the interests of their own people in favour of their own enrichment and the interests of the vested interests who are backing them .The people of Iceland showed what true democracy is as they refused to be blackmailed and bullied into paying private corrupt bankers debts. At least they had the balls to stand up and say now we will not pay.

Where are the real patriots of Ireland who will stand up and say enough, we will not go into the night and disappear as an independent nation!

We were once a proud Celtic nation and I for one will once again take on the trappings of our Celtic past and don the traditional ancient Irish dress” the Kilt “as my way of showing defiance and independence! I will now ware this form of dress as often as I can to remind people who we were and who we are.

The English knew the way to subjugate a people was to rob them of their language and culture, we are born free men and I will not accept imposed financial slavery from a corrupt political system that has become an instrument of dictatorship by a select political élite. Join me wear the Irish Kilt show you independence.

David Drumm finally breaks his silence on Anglo


By Namawinelake

It is surprising that although David Drumm has been a household name since late 2008 when he resigned as CEO of Anglo Irish Bank (now part of the Irish Bank Resolution Corporation) and since then, there has been an avalanche of press coverage and at least two books (The Fitzpatrick Tapes and Anglo Republic), but to date there has been very little comment from the man himself. When RTE correspondent, Charlie Bird called on David’s family home in Massachusetts last year, all he got was a “have some respect Charlie”. There have been volumes of court documents of course since David filed for bankruptcy in the US in October 2010 and there ha ve been some brief phone exchanges but today in Irishcentral.com, journalist and activist

full article at source: http://namawinelake.wordpress.com/2011/11/27/david-drumm-finally-breaks-his-silence-on-anglo-nama-and-the-irish-financial-crisis-if-my-case-is-indicative-of-how-they-are-being-measured-taxpayers-money-is-being-absol/

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