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Posts tagged ‘www.thestory.ie’

Mary O’Dea and the IMF


The Story.ie

I couldn’t let this one pass without comment either. Mary ‘shop around’ O’Dea has landed a new job at the IMF, as the Irish Independent reported earlier this month.
O’Dea, currently director general of financial operations at the Regulator, will become the IMF’s alternative executive director this July.
“I’m really looking forward to what I know will be a challenging role, especially at a time when Ireland is itself in an IMF/EU programme,” O’Dea told the Sunday Independent. This paper asked the Regulator two months ago if O’Dea would be taking up a new job in the IMF.
I suppose you could with some jest say that she is getting out of dodge when the going is good. Rumour has it there were no promotion prospects internally at the now expanding Central Bank, so she was bumped off to Washington. Apparently the job is a rather nice 3 years in Washington DC tax-free with expatriate benefits (including private schools).
Oddly though she goes from sitting in our Central Bank/Financial Regulator up to and during IMF intervention, to now sitting on the other side of the table to perhaps help scrutinise our adherence to an IMF deal.
(H/T P O Neill)


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.


However this document has also been doing the rounds lately, as released to the Public Accounts Committee (worth a detailed look):



Toggle Description Description

Public Accounts Committee


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/



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.

Brian Cowen and Brian Lenihan’s history of Lies

Talking points in time


Brian Lenihan; 19 Sept 2008. Six One News. ‘Ireland not at risk of fallout from fiscal crisis, says Lenihan’

“Our financial sector is sound and we are determined to ensure that continues”

Brian Lenihan; 30 Sept 2008. Morning Ireland.

“Does this mean the Irish government is exposed? No that’s not correct, of course every Irish bank has to write up their assets and liabilities in balance. The banks would be insolvent otherwise”

Brian Cowen; 30 Sept 2008. Six One News.

We have a banking system which has over the past number of years had good profits, in a healthy state, well capitalisted, well-secured loans. The first people to hurt if anything happens in the bank are the shareholders

Brian Lenihan; 10 Oct 2008. Irish Times.

“the cheapest bailout in the world so far”

Brian Lenihan; 19  Nov 2008. Six One News.

“We’re not rushing into the banks like some governments in other countries without knowing exaclty what the situation is in those banks…”

Brian Lenihan; 14 Dec 2008. Six One News.

“There will be no exposure to the taxpayer on this [€10bn support fund for banks]…”

Brian Lenihan; 16  Jan 2009. Morning Ireland.

Interviewer: Is it possible that you could in a few weeks time that you could move to nationalise AIB and Bank of Ireland as well? “No it’s not… there are no difficulties in these banks, there is no problem”

Brian Lenihan; 8 Feb 2009. The Week in Politics.

“We are now going to commit an investment for a definite return to the taxpayer. This is not bailing out the banks. This is a commercial investment for the state…”

Brian Lenihan; 18 Feb 2009. Dail Eireann.

This decisive step [to nationalise Anglo] was taken to safeguard the interest of the depositors of Anglo Irish Bank and the stability of the economy. I want to assure the House that this decisive step was taken to ensure the new nationalised bank will collect all debts due from persons who owe moneys to the institution.

Brian Lenihan; 8 April 2009. Six One News.

“This is not a bailout… this is about ensuring businesses which cannot access credit, do access credit”

Brian Lenihan; May 18 2009. Irish Times. When challenged as to why he was not nationalising banks (at this time the State had already nationalised Anglo Irish Bank and taken a 25 per cent stake in Bank of Ireland and AIB)…

I do really want to scotch the idea that there are huge risks to the taxpayer in the valuation process because we are not nationalising these institutions.

Brian Lenihan; 10 Sept 2009. Six One News.

[NAMA] will get credit flowing.

Brian Lenihan; 16 Sept 2009. Nama Bill, Dáil.

NAMA will ensure that credit flows again to viable businesses and households by cleansing the balance sheets of Irish banks. This is essential for economic recovery and the generation of employment. It will ensure that we avoid the Japanese outcome of zombie banks that are just ticking over and not making a vibrant contribution to economic growth.

Brian Lenihan; 9 Dec 2009. Six One News

“The worst is over, we’ve turned a corner”

Brian Lenihan; 4 April 2010. On the residential property market. Irish Independent.

“One of the good things about the steep discount, averaging 47 per cent, is that the residential property market will now be stabilised at a realistic level. You can now buy in confidence that the price is realistic.”

Brian Lenihan; News At One. 13 April 2010. Speaking about ERSI report…

“It means that we are stabilising as an economy and it also means we are turning the corner, and there will be increased numbers of jobs created,” he said. “At least we’re on an upward trajectory”

Brian Lenihan; Breakfast with Newstalk. 26 April 2010.

BL: No, no, listen, listen. This not good for the country and it’s inaccurate. If next year we’re obliged to include the €8bn, the €8bn will not actually be borrowed next year the device of the promissory note means we borrow…

Ivan Yates: No, I know the promissory note is over ten years. You’re missing the point…

BL: No you’re missing the point! This is an accounting device! This is not real borrowing! What the markets look at is real borrowing. Not accountancy devices…

Brian Lenihan; Breakfast with Newstalk. 26 April 2010.

Now that I’m the shareholder in Irish Nationwide I will clearly ensure that whatever money is owed by Mr Fingleton is paid by Mr Fingleton.

Brian Lenihan; Irish Times. ““Ireland not at risk of fallout from fiscal crisis, says Lenihan”. 6 May 2010.The risk of contagion in my view does not extend to Ireland. Over the last 18 months we have taken many of the measures that the Greeks are only beginning to take. I don’t see Ireland as being at great risk.”

A proposed €110 billion aid package for debt-stricken Greece has failed to soothe concerns that the fiscal problems saddling it, and perceived weaker euro-zone nations, will hurt the banking system and worldwide economic growth. “One of the reasons markets are critical of countries other than Greece is because some . . . don’t just have public debt problems, they also have structural problems with their economies,” Mr Lenihan said. “We’re not a country that has the severe structural problems that some of the other Mediterranean countries have shown and the markets have tended to differentiate Ireland out from these countries.”

Brian Cowen; 14 May 2010. Irish Times.

“We have learned hard lessons and have taken difficult decisions. Our economy is now emerging from recession and Ireland is strongly fighting back.”

Brian Lenihan; 7 July 2010. Irish Times.

“It is important to bear in mind that these projections are for a plan over 10 years; the figures are likely to change over time.

“But the Government has made clear that should Nama eventually make a loss, the Government will recover this through a surcharge on the banks.”

Mr Lenihan said the bottom line was that Nama would never cost the taxpayer anything and might even make a profit of €3.9 billion.

Brian Cowen; 7 July 2010. Irish Times.

Speaking in the Dáil this afternoon, Taoiseach Brian Cowen said [Nama] would make a profit “somewhere in the order of €1 billion”.

Brian Lenihan; 14 Sept 2010. Dail Eireann.

Certainly if given the chance I will have this problem sorted out, and this Government will have this problem sorted out a lot earlier than 10 years.

Brian Lenihan; 24 Sept 2010. Irish Times.

In recent weeks the extra yield investors demand to hold Irish bonds over German bunds has surged to record highs due to investor concern about the State’s ability to manage the cost of its bank bailout and reduce the budget deficit.

Mr Lenihan said he was undeterred by the data and that the underlying trends indicated a remarkable turnaround for the economy.

“Tax revenues are stabilising, public expenditures are under control and our budget deficit will shrink next year,” he said. “The recovery is still at a tentative stage and is likely to be uneven.”

Goldman Sachs; 24 Sept 2010. Irish Times.

One bright spot for the Government today came from a research note by Goldman Sachs Group which said Ireland was “very unlikely” to experience a financial crisis as severe as the one that forced Greece to seek an international bailout earlier this year.

“A repeat of the Greek debt turmoil in Ireland is very unlikely,” Michael Vaknin, a senior fixed-income strategist at Goldman in London, said.

“With Irish spreads already at all-time highs, we would argue that refinancing risks in the Irish debt market is aggressively priced-in already.”

Brian Lenihan; 30 Sept 2010. Newstalk.

The Finance Minister has described today as ‘rock bottom day’ as far as the banks are concerned.

Brian Lenihan says the announcement today on the final Anglo Irish bill is an ‘urgent and immediate priority to reinforce international market confidence in our ability and commitment to restore our banking system to health’

Brian Lenihan; 10 Oct 2010. Irish Times. ‘State becomes majority shareholder in AIB’

Minister for Finance Brian Lenihan said the State would have to invest in the bank, and that “progressive” changes would be made at management and board level in AIB. “It will, I believe, result in a substantial gain to the taxpayer over time as the bank is restored to its proper position,” he said.

Brian Lenihan; 4 Oct 2010. Irish Times.

… the figures showed the exchequer deficit for the first nine months of the year stood at €13.4 billion, compared to a deficit of €20.1 billion, recorded at the end of September last year.

Minister for Finance Brian Lenihan said this evening the figures showed the public finances were “stabilising” due to decisions taken by the Government.

Brian Lenihan; 11 Oct 2010. Irish Times.

Minister for Finance Brian Lenihan said today he is “absolutely” sure the country will not need to seek a bailout from the IMF and European Union.

In an interview recorded for Bloomberg Television, Mr Lenihan said Ireland “was not in a balance of payments deficit position” but admitted the country did have “real fiscal and banking problems to address”.

“We had a big contraction last year. We contracted by 10 per cent in GNP terms in one year. We got it back to zero again this year. That’s quite a turnaround,” he said.

Mr Lenihan claimed Ireland was emerging from deficit on the back of stronger exports and stressed the country is fully funded through to the middle of 2011.

Patrick Honohan; 13 Oct 2010. Irish Times.

Prof Honohan said dealing with senior bondholders was “complicated” because under Irish law they “stand equally with depositors”.

He also said things went “in a bad direction” for Ireland, and “we’re now turning this around and coming out of it”.

Brian Cowen; 16 Nov 2010. Irish Times.

Speaking in the Dáil, Mr Cowen reiterated that Ireland had made no application for external support and said there had been some “ill-informed and inaccurate” speculation about the Government seeking a bailout in recent days.

Brian Cowen; 17 Nov 2010. Irish Times.

Taoiseach Brian Cowen insisted “there has been no dictation from anybody. What we’re involved in here is working with colleagues in respect of currency problems and euro issue problems that are affecting Ireland, they’re affecting other countries. They’re particularly affecting Ireland at the moment.”

He stressed that “there has been no question, as has been stated all over the weekend, of a negotiation for a bailout”.

Brian Cowen; 19 Nov 2010. Irish Times.

Taoiseach Brian Cowen denied that the rescue plan would lead to a loss of Irish sovereignty. He also dismissed suggestions of failure. “I don’t believe there’s any reason for Irish people to be ashamed and humiliated,” he said.

source http://thestory.ie/2010/11/22/talking-points-in-time/comment-page-1/#comment-34687


My thanks to Thestory.ie for this collection

These are only some of the bare faced lies we have had from Brian Cowen and Brian Lenihan

The shocking realization for the Irish People is how perfectly naturally these two career politicians seem to do this. We have been humiliated by the incompetence of these two politicians .Not one word is now believable from these two disgraced servants of the people .They are in my mind the embodiment of total corruption ,total lack of accountability ,champions of state terrorism and the worst examples of cronyism. They will go down in Irish History, hated as Cromwell’s equal

They have destroyed in a few years what countless generations of Irish men and woman fought and died for to establish an Independent Irish republic .As of yesterday was are no longer a proud independent people. We are handing out the begging bowel to the English and are once again put back into a place my generation knew so well, the poor house of Europe.

But there is some good news yes in spite of all this betrayal, we have in Ireland today the best ever educated generation our Nation has ever had and it is to this generation I look to for out nations future .This is the generation that will lead this country back from the devastation we are now in .this generation will rout out the corruption and cronyism that infests the Dail .We will emerge from this and I believe we will emerge stronger .Just look at Germany they were beaten into the ground and they are now the envy of all the other nations in Europe. We have the people and we have the brains and we have the determination for the past 12 years we have had a glimpse of what we the Irish can achieve .We must now take back our country from unscrupulous career politicians that have commandeered the political process in this country for their own self interest and that of their cronies and families .This is an opportunity for us to make real changes to our political system that will bring more transparency and true Direct democracy .Without a major reorganization of the political system and constitution we will only fall back into the hold we are now in .Ireland has a bright future and she needs to cherish all of her children equally ,not just the chosen few


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.


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


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


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

Accounting gimmickry at the Dept Finance ?

thestory’s.ie ongoing spat with NAMA Up-Date

Long time readers will recall that this blog has been having something of a legal disagreement with both the National Asset Management Agency (NAMA), and more recently our own Office of the Commissioner for Environmental Information (OCEI). The saga has now been running for eight months, and looks set to continue for some time yet.

For new readers (and we see from our subscriber figures that there are many new readers) we should perhaps recall how this legal battle commenced. Back in February, realising that NAMA does not come under Freedom of Information (FOI) legislation – because our Minister for Finance decided not to prescribe it – we instead turned to that other arm of right to information legislation: the Environmental Information Regulations, or EIR for short.

We sent a request for information to NAMA, which was promptly refused on the basis that NAMA did not consider itself to be a public authority for the purposes of those regulations (SI 133/2007). We disagreed, citing that the Regulations stated that a body “established by or under statute” (and also that the board was appointed by the Minister) was a public authority, and therefore NAMA was a public authority. In disagreeing, we sought an internal review from NAMA. NAMA complied, and their internal review agreed with their original decision, that NAMA was not a public authority. We then appealed the matter to the OCEI, a sort of sister office to the Information Commissioner, and also headed by Emily O’Reilly. We also added a further submission to that appeal. Months passed, after which we received a letter from the OCEI – a preliminary decision which agreed with NAMA that it was not a public authority, and seeking our response. We then replied to that preliminary decision, as we were asked by the OCEI to do.

Last week we received a copy of NAMA’s reply to our response, and have been invited to make a further submission, in advance of a binding decision by the OCEI. This has actually become reasonably technical on a legal level – but we believe it is all really rather simple. The core argument (among two other significant arguments) is actually based on how one reads the legislation.

The legislation states:

“public authority” means, subject to sub-article (2)—

(a) government or other public administration, including public advisory

bodies, at national, regional or local level,

(b) any natural or legal person performing public administrative functions

under national law, including specific duties, activities or services in

relation to the environment, and

(c) any natural or legal person having public responsibilities or functions,

or providing public services, relating to the environment under the

control of a body or person falling within paragraph (a) or (b),

and includes—

(i) a Minister of the Government,

(ii) the Commissioners of Public Works in Ireland,

(iii) a local authority for the purposes of the Local Government Act 2001

(No. 37 of 2001),

(iv) a harbour authority within the meaning of the Harbours Act 1946

(No. 9 of 1946),

(v) the Health Service Executive established under the Health Act 2004

(No. 42 of 2004),

(vi) a board or other body (but not including a company under the Com-

panies Acts) established by or under statute,

(vii) a company under the Companies Acts, in which all the shares are


(I) by or on behalf of a Minister of the Government,

(II) by directors appointed by a Minister of the Government,

(III) by a board or other body within the meaning of paragraph (vi), or

(IV) by a company to which subparagraph (I) or (II) applies, having

public administrative functions and responsibilities, and possessing environmental information;

Simple, right? One would think so, but NAMA doesn’t see it that way.

As far as NAMA is concerned, and indeed the preliminary view of the OCEI, it hinges mainly on what the words “and includes” mean. For us the legislation says:

a “public authority” means X and includes Y

where X represents the three types of public authority 3(1)(a)-(c) and Y is a list of bodies and categories of bodies i.e. 3(1)(i)-(vii). We believe NAMA clearly falls within the definition of 3(1)(vi). But NAMA reads parts (i) – (vii) as a subset of (a-c).

You could say we are at loggerheads on this one. And this actually goes beyond whether NAMA is or is not a public authority under this legislation. The disagreement here is so fundamental that it affects all other types of bodies that may or may not be public authorities under the same legislation. It is of fundamental importance to how this legislation is applied in the future, and could decide on how limited, or unlimited, the definition of public authorities becomes. Dozens of bodies could be included or excluded on the basis of how this legislation is interpreted.

source http://thestory.ie/2010/09/27/the-nama-saga-continues/


 The Story Blog is doing the citizens of Ireland proud and should be supported anyway you can as I believe this is an example of what the Freedom of Information Act was all about

Citizens have a right to know what is going on in State financed bodies and the very fact the NAMA is fighting this should sound alarm bells ringing all over the place.

It is vital for our democracy that they are subject to public scrutiny from ordinary citizens via FOI

Best Wishes

A donation of 30 euro is been sent to you towards your costs and I would call on all machholz followers to contribute to this epic cause any way they can

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