What is truth?

Posts tagged ‘Minister for Finance (Ireland)’

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

State blows all new taxes for 2013 in one fell swoop with return to bond markets at unsustainable rates

The Romanian dictator Nicolae Causescu knew his days were numbered on 21st December 1989 when, from a balcony in one of Bucharest’s great squares, he starting giving a typical speech to crowd who suddenly started chanting “Timisoara”, the name of a town in west Romania where the Causescu regime had killed protestors days before. A week later, on live TV, the Causescus – equally repugnant husband and wife – were no more, after being summarily tufted out the door to an anonymous yard, after a trial of sorts, and shot. And in early December 2012, Minister for Finance Michael Noonan should not be surprised if he hears the chant “26th July” as he unveils his budget for 2013. The Memorandum of Understanding with the Troika obliges us to raise an extra €1.25bn in taxes in 2013, though recent statements from the Department of Finance suggest that taking into account the full year effect of tax hikes in 2012, that the true extra tax requirement is closer to €1bn

full article at source: http://namawinelake.wordpress.com/2012/07/27/state-blows-all-new-taxes-for-2013-in-one-fell-swoop-with-return-to-bond-markets-at-unsustainable-rates/

Comment:

Again we see that we the people were spun fibs by the current government .We were promised we could get finance at 1% but we are now paying 5.9% and we will have to pay even higher taxes to pay for the lies we were told by that gangster Noonan and his Berlin collaborators .All those of you who voted yes in the last referendum should now wake up and smell the stench coming from Leinster House!

Pity Noonan, Kenny and all the other yes-men (Monney-men Puppets) and gangsters in the Irish government are not getting similar treatment to that of the Causescu’s. I would gladly do the honors !As I see it Noonan and his Government have blood on their hands and will some day be called to account !

Gene Kerrigan: For both sides, the kicks keep coming.

AIB

AIB (Photo credit: Wikipedia)

By Gene Kerrigan

A QUESTION. Have the citizens of this befuddled little nation become so used to bowing the knee that there’s nothing they won’t let these people get away with? So far, an impartial observer might answer, yeah, probably.

Right now, Michael Noonan‘s Department of Buggering Up the Economy seems determined to see just how much humiliation they can heap on to us. It might be that one evening, having drunk a few bottles of Chateau Arrogant with their lobster dinner, the minister’s bright-spark advisers came up with an idea.

 

“Suppose,” one Knight of Austerity murmurs, “suppose we brought back bonuses for bankers?”

A shiver runs through everyone in the room.

“I’m talking big, big bonuses,” the Knight says.

“Too soon,” says one deputy assistant under-secretary. “Far too soon.”

Now, I’m just speculating here. For all I know, it was Chateau Shameless they’d been drinking. But I’ve no doubt a conversation of this sort took place. How else do we explain this Irish Independent headline from last week? ‘Michael Noonan clears way for bank bosses to get bonuses’.

The headline was over the byline of Laura Noonan, who doesn’t make things up. She quotes from, and therefore has access to, new guidelines okayed by the minister. These will “pave the way” for “incentive arrangements” at AIB, Permanent TSB and at The Dead Bank Formerly Known as Anglo.

 

full article at source: http://www.independent.ie/opinion/columnists/gene-kerrigan/gene-kerrigan-for-both-sides-the-kicks-keep-coming-3074220.html

A handy stick to beat us with (thepressnet.com)

 

Governor Patrick Honohan before the Oireachtas

By Namawinelake

Aliens appear to have been at work in Ireland in the past fortnight. Deputy Peter Mathews seemingly disappeared off the face of the earth shortly after his 6.30am dawn carpeting last Thursday week by An Taoiseach Enda Kenny, after Peter had, the previous evening, tabled a proposal at an Oireachtas committee meeting to summon governor of the Central Bank of Ireland, Professor Patrick Honohan before that committee to give an account of the work underway to reduce the cost of the Anglo promissory notes. So Peter was probably given a stern warning by Enda and told to stay away from the media. Maybe. But where is the Minister for Finance Michael Noonan who last Wednesday night barged into the Dail where Private Members’ Business was taking place, where against protocol, the Minister gave a brief statement on the Anglo promissory note negotiations and left. He turned up again on Friday morning when he told the media he was “confident” of a deal “over the weekend”.

full article at source: http://namawinelake.wordpress.com/

Irish Life and Permanent will be effectively nationalised with the injection of up to €3.8 billion

Article by

SIMON CARSWELL

Irish Life and Permanent will be effectively nationalised with the injection
of up to €3.8 billion in State funds by the end of next month, the company has
confirmed.

The company told shareholders in a circular published today that it proposed
issuing up to €3.4 billion in ordinary shares and a further €400 million in
contingent capital to the Government, leaving the State with a shareholding of
more than 99 per cent.

As a result, the company will delist from the main Irish stock exchange and
expects to re-list on the junior Irish market, the Enterprise Securities
Market, on August 22nd. An extraordinary general meeting will be held on July
20th to approve the issuing of the ordinary shares to the Minister for Finance.

The State will inject the capital to meet the €4 billion capital target set by
the Central Bank following the stress testing of the banks last March before a
deadline of the end of July under the terms of the bailout by the European
Union and the International Monetary Fund. The company made a gain of €300
million from a debt buyback in May.

The company said that its board had decided to take the capital injection from
the State “having taken legal and financial advice”, believing it to be “in the
best interests of the company and the shareholders as a whole, given the lack
of alternative options available to raise the required capital by July 31st
2011”.

Irish Life and Permanent warned that if shareholders do not vote for the State
recapitalisation, its directors believed that Minister for Finance Michael
Noonan would be likely to use the Credit Institutions (Stabilisation) Act 2010
to ensure that the company would be able to meet its capital requirements.

“The timing of any such intervention would be at the discretion of the Minister
for Finance and the Irish High Court and therefore not within the control of
the directors,” the company said.

The State capital injection will not affect the sale of Irish Life, the
company’s life assurance business. It’s understood that the company will issue
an information memorandum relating to a trade sale of the company in the coming
days.

Irish Life and Permanent will be the fifth Irish financial institution to come under
Government control. Bank of Ireland, which is 36 per cent owned by the State,
is trying to raise enough capital from private investors to avoid majority
State ownership.

Source. http://www.irishtimes.com/newspaper/breaking/2011/0627/breaking49.html

Comment:

Here we go again “THIS IS SHEER MADNESS” nobody gets to go to jail except those of
us who cannot pay the penal interest rates this gangster led financial toxic
dump has foisted on to the shoulders of their hapless mortgage holders of which
I am one of them! The government is allowing the gangsters in this company to
fleece us their customers so as to allow then to raise their capital base
instead of having them arrested and put in jail .This toxic dump should be
allowed to go bust.

This is the faith of all the IRISH BANKS

Whatever happened to “Not
one red cent more
”??

The market response to the stress tests

By  namawinelake | May 9, 2011 at 10:22 am

Quite a number of official sources have claimed in the past month that the stress test announcements on 31st March, 2011 have been greeted positively by the market. Minister of State at the Department of Finance, Brian Hayes told a conference on Friday last “these [stress test] exercises were characterised by a high degree of transparency and the input of highly respected international consultants, and as a result have been well received by the market”. Yesterday, governor at the Central Bank of Ireland, Patrick Honohan said on RTE radio (podcast available here) that “the reaction of the markets to the latest stress tests where we put our hands up and said we had not put in enough capital and we will need put in a lot more capital and we gave a lot more detail and a lot more precision about it I think the markets’ reaction which has been very favourable shows that our credibility with the markets is not been damaged in the way that you imply”. And on 6th April, 2011, speaking in the Dail, Minister for Finance, Michael Noonan delivered an upbeat assessment of the reaction of the bailout citing three examples which he claimed quantitatively showed that the market reaction had been positive. This entry examines those quantitative measures and concludes that we are really in no better a position today than we were in March. The three metrics in Minister Noonan’s statement to the Dail which he claimed evidence the positive reaction of the market were (1) The yield demanded by investors for our 10-year bond. On 31st March, 2011 just before the stress test announcements, the bond closed at a record 10.22% mid-point. And in the following days it steadily came down which indeed did indicate a positive market response. Indeed by 12th April, 2011 the yield had come down to 9.08%, which is still in unsustainable territory (the accepted wisdom is that rates over 6% are unsustainable). But since mid April, 2011 the yield has increased again and on 29th April, 2011 closed at a record 10.57% though in recent days it has come down slightly and this morning is trading at 10.3%. The graph below illustrates the mid-point closing prices in the last three months. Based on this metric, I don’t think you can conclude the market reaction is positive. (2) The share prices of our banks which were subjected to stress tests. In fact the Minister in his presentation to the Dail only referred to the share price of AIB and Bank of Ireland which have been chosen as pillar banks. Irish Life and Permanent, the bancassurer’s future is not certain. On 31st March (actually 30th March because remember we suspended trading in the shares for a day), AIB’s share price closed at €0.19 and BoI’s at €0.22 – both record lows in 2011. Again in the week immediately following the stress test announcements, the prices increased, in AIB’s case to €0.33 and BoI’s to a high of €0.34. Since then the shares have drifted back down and closed on Friday at €0.22 and €0.25, certainly no different to the range of prices available in March 2011 as the table and graph below demonstrates. (3) Deposit flight from the six State-guaranteed financial institutions (actually four now that Anglo and INBS have sold their deposit business, the four being AIB, Bank of Ireland, EBS and Irish Life and Permanent). Minister Noonan’s choice of wording was curious and equivocal which was in itself curious because he is one of the most articulate politicians you will find, and not just in Ireland. Minister Noonan said at the start of April “the total amount of deposits withdrawn from the pillar banks has been very significantly reduced. Since Thursday’s announcements, the net deposit position of the Pillar Banks has improved significantly” We are unable to confirm if this is still the position. That is because the stress test announcements were made after close of business on 31st March, 2011. It will not be until the end of this week (the second Friday in each month) that the Central Bank ofIrelandproduces financial information for March and even then it won’t show the deposit position in the State-guaranteed banks. We will need wait until 31st May for that information. What we can say is that if the deposit position had continued to improve, we might have expected some unscheduled comments from the CBI or Department of Finance. Unverified anecdotes suggest deposits do continue to decline. So based on the above metrics, you might conclude that the market response to the stress test and bank restructuring announcements has not been positive. We seem to be in no better a position that in March. In truth though, it is arguable that the deterioration that followed the immediate aftermath of the announcements has less to do with Ireland and more to do with the fact that Portugal applied for a bailout on 8th April and Greece’s position has deteriorated with a negative revision to its finances and what now seems like a certainty that the country will restructure and/or default. So you could argue that we have been buffeted by the slipstream ofGreeceandPortugal’s woes. But equally, I think it is difficult to defend the statement that the market is now reacting positively to the stress test announcements.

source |  URL: http://wp.me/pNlCf-1np

 

Comment:

May I reiterate my pronouncements on this subject once again “Mr Honohan did exactly what he was asked to do, he was put in this job to try and fool the international markets effectively sell a pig and a poke. His reputation is shot full of holes and I wouldn’t trust him with my weekly shopping list. Financial fundamentals were totally ignored and this man must accept his part in selling out our country. Shame on him and again I call on him to resign. Strike that “Fire Him” instead!

The financial institutions are having a Laugh!

SIMON CARSWELL, Finance Correspondent

THE NATIONAL Asset Management Agency (Nama) has ruled out a further increase in the fees paid to the five participating institutions for administering €72.3 billion in loans for the agency, despite lobbying by the banks for an increase.

Nama has acquired the property loans of about 850 borrowers from the five lenders and the largest 175 debtors, accounting for about €61 billion of the debt, are managed directly by the agency.

The financial institutions are paid a fee of up to 0.1 per cent of the face value of the loans to cover the cost of administering the loans, depending on the ability of the institution to recover the loan.

This amounts to €72.3 million in fees based on the nominal value of the loans within Nama.

The fee was originally set at 0.06 per cent of the value of the loans but the European Commission recently approved the payments to be increased up to 0.1 per cent. The increase in the fee is at Nama’s discretion and where warranted to recover costs, according to a spokesman for the agency.

The spokesman ruled out any additional increases. “There are no discussions,” he said.

The administration fees paid to institutions vary depending on the work they are required to do for Nama but that the fees would not be higher than 0.1 per cent.

A number of the financial institutions have criticised the size of the fee, saying that it does not cover the cost of servicing the loans day-to-day for Nama.

Bankers have pointed out that other State-run asset management agencies pay higher administration fees to the banks for servicing the loans and that Nama’s arrangements do not incentivise the banks to manage the loans effectively.

David Hodgkinson, the executive chairman of AIB, told the Department of Finance in a letter last January that the servicing fees under Nama were “insufficient to meet the costs related to servicing those relationships”.

He wrote to the department’s secretary general Kevin Cardiff to object to plans to transfer smaller land, development and related loans under €20 million under the so-called Nama 2 process.

He warned that the problem of insufficient fees would be compounded under the Nama 2 transfers, which at the time were proceeding under the terms of the €85 billion EU-IMF bailout.

“Ultimately, the costs have to be met and the bank will likely require an increase in servicing fees, which in turn will impact the profitability of Nama,” he said.

The IMF, the European Commission and the European Central Bank agreed earlier this month that the Irish banks would not have to transfer the €12 billion batch of small loans to Nama.

The agency has yet to publish its quarterly results for the final three months of 2010, which are awaiting sign-off by Minister for Finance Michael Noonan

source:http://www.irishtimes.com/newspaper/finance/2011/0425/1224295410252.html

Comment:

What we have here is an attempt to milk NAMA and the Taxpayers of this country for Fees for a disaster the Banks caused themselves .The Finance minister should tell them all where to go in no uncertain terms .In fact the Minister should investigate the Salaries and perks of all NAMA staff and no bonus or other perks should be paid. No banker should be paid as far as I am concerned as NAMA is supposed to be doing this work in the first place

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