Enda launches new IFSC strategy, yay!

[Dr. FIVE]

Oh man, some rubbish in this clip.

‪IFSCStrategy Launch - Taoiseach's Q and A‬‏ - YouTube

The seven drivers he speaks about are

Transparent and competitive direct and indirect tax framework
Credible, responsible and proportionate regulatory regime
Development of new business lines
Coordinated international engagement and marketing
Integrated support for investment and growth
Targeted development of appropriate skills
Sustained control of business costs



Full report here (http://www.merrionstreet.ie/wp-content/uploads/2011/07/IFS-Strategy-2011.pdf). Will have a look after lunch.


http://www.merrionstreet.ie/wp-content/uploads/2011/07/IFSC_Strat_Taoi_425.jpg

Can't seem to find who's on the IFSC Chairing group at the moment. Looks like Dermot McCarthy is still there but I don't recognise anyone else.
You can grab a better look at the men in suits here.


‪IFSC Strategy Launch - Taoiseach's statement‬‏ - YouTube


And irony of ironies, that isn't our Kath Barrington coming out the door as Enda starts his speech?

[culmore]

10.000 new jobs has to be good news

[Dr. FIVE]

Small beans with the jobs the place has cost us.

[Dr. FIVE]

IFSC Clearing House Group - Worth keeping Enda's response to the first question in mind.


Dermot McCarthy (Chair) Department of the Taoiseach
Michael Sludds (Secretary) Department of the Taoiseach
Barry O’Leary IDA Ireland
Breda Power Department of Jobs, Enterprise and Innovation
Brendan Bruen Financial Services Ireland
Brian Daly KPMG
David Fagan Legal and General
Deirdre Somers Irish Stock Exchange
Eamonn O’Dea Revenue
Fergus Murphy Financial Services Ireland, EBS
Gary Palmer Irish Funds Industry Association
Gary Tobin Department of Finance
Jim Byrne Revenue
John Feely Attain
Julie Sinnamon Enterprise Ireland
Kevin Cardiff Department of Finance
Kieran Donoghue IDA Ireland
Matthew Elderfield Central Bank of Ireland
Padraig Rushe Bank of Ireland
Pat Farrell Irish Banking Federation
PatWall PWC
Patrick Brady Central Bank of Ireland
Paul McGowan Chair of Funds Working Group
Peter Keegan Bank of America Merrill Lynch
Robert Richardson Pioneer Investments
Sean Gorman Department of Jobs, Enterprise and Innovation
Tim Hennessy Axis Capital
Tom Young BNY Mellon
Tony Golden Citi
William Beausang Department of Finance
Willie Slattery State Street

Insider's insiders

Pioneer still taping away there

[Dr. FIVE]

Page 5 Regulation: Credible, responsible and proportionate


Ireland’s future as an international financial centre depends on having a credible, responsible and internationally respected regulatory regime 1. As regulatory systems have been challenged across the world by the financial crisis, Ireland has responded decisively with structural reforms.

Further development and the building of increased capacity will be undertaken to ensure that it continues to have the resources to deal with the most complex international institutions and the increasing volume of EU and international requirements.

In adopting an approach based on impact and risk, the Central Bank will be balanced and proportionate. This approach allows for the allocation of appropriate supervisory resources to those firms whose failure would have the greatest impact on the economy and consumers.

Where both the impact of failure and the risks associated with firms are relatively low, the approach will be to have an effective reporting framework, a rapid reaction capability and credible enforcement.

The Central Bank will maintain the highest standards of oversight and will engage constructively with firms to secure fulfilment of regulatory and supervisory requirements. While firms can expect challenge, they can also expect professionalism, cost-effectiveness and speed. The Central Bank will ensure that as it expands it maintains this approach at all levels of interaction with firms.

Ireland will align itself with international best practice. The regulatory environment will continue to keep pace with other respected financial services centres in its capacity to approve new business proposals efficiently and effectively.

Consistent and timely implementation of international standards is essential for effective regulation and Ireland has a strategic interest in the development of high quality international regulatory policy. Industry will work constructively with the public sector to ensure that Ireland plays a more active role in European and international policymaking.

>The development and implementation of new requirements will be subject to full consultation and, where appropriate, impact analysis. Sufficient notice periods will be given to allow firms to comply where this is within the control of the regulatory authorities.

The Central Bank and relevant Government departments will consider and consult with industry, other stakeholders and one another in respect of the effects of new regulation on the financial sector and the broader economy and any potential overlap between new measures and related existing requirements.

The Clearing House Group will review and monitor the cumulative effects of regulation and their broader impact.

Government departments are committed to engaging with other Member States and international stakeholders to avoid restricting economic growth, and aim to transpose EU Directives in advance of their official deadlines to ensure that financial services providers have as much time as possible to implement new requirements. <

Institutional expertise and skilled staff will form the foundation of effective regulation. The Central Bank is placing greater emphasis on fully understanding business models.

The crisis has demonstrated the importance of finding innovative solutions to problems, and ensuring that financial innovation remains responsible and addressed towards long-term success, sustainability and stability. Proportionate and appropriate regulation should not stifle responsible innovation.

[antiestablishmentarian]

The best IFSC strategy that they could come up with would be to shut it after freezing all assets passing through it and performing a selective expropriation. That, coupled with cutting the electricity to the place to prevent awkward files being shredded, would sort out the IFSC problem for us, as in my humble opinoin the place is like a haven for financial criminals and all kinds of low-life tax dodgers.

[Dr. FIVE]

Page 4 Tax framework (excerpt)

Ireland is absolutely committed to maintaining its 12.5% corporation tax rate. This commitment is protected in an EU context by the principle of unanimity in taxation matters, and is accepted as part of the EU/IMF Memorandum of Understanding.

Ireland’s reputation as a responsible on-shore tax jurisdiction is essential to our future success; the credibility of our tax regime is a key selling point and will be protected. Ireland has consistently practiced good governance in tax matters and fully supports international efforts to promote transparency and effective exchange of information on tax matters and to address harmful tax practices.

[Captain Con O'Sullivan]

'responsible on-shore tax jurisdiction' ha ha, thats funny. Is that why the former Financial Regulator is effectively in hiding off-shore?

[Dr. FIVE]

Just going put Dave Malone's posts here again.
Essential reading for anyone who would like to know what went in the IFSC over the last decade.


Ireland was Germany's off-shore tart parts one and two


http://golemxiv-credo.blogspot.com/2011/01/ireland-was-germanys-off-shore-tart.html

http://golemxiv-credo.blogspot.com/2011/01/ireland-was-germanys-off-shore-tart_26.html

[Dr. FIVE]

The more I see of Fine Gael's attitude to all this the more I think we would be in bigger crap if they had been in the last few years.
Light touch? The PDs are only trotting after them.

[Dr. FIVE]

h/t Conor McCabe for spotting some new arrivals.

http://dublinopinion.com/2011/12/26/the-ifsc-and-afghanistan-courtesy-of-eurocopter-internatrional-services/


New Eurocopter company to support business in tough locations

Eurocopter is planning to set up a new company to look after the company’s products and staff in challenging, less secure areas of the world by the end of the year.

Senior vice-president of human relations, Michel Sesques told Jane’s that the new company will be called Eurocopter International Services and will be based in Ireland.

He explained that the company has a number of mostly ex-military ‘Tech Rep’ (technical representative) teams who specialise in working in unstable or potentially dangerous areas, but also that Eurocopter outsourced work to third-party insurance firms. “These are the guys you call if a helicopter goes down in the jungle in Columbia,” he said.

Eurocopter also deploys personnel into war zones and has three staff in Afghanistan helping to support the three French Tigre HAP attack helicopters in theatre.

It is not just people who need to be protected. Vice-president of the company’s existing after-sales customer support organisation, Trevor Sharples, said that Eurocopter guarantees to get spare parts anywhere in the world in 48 hours. He added that this part of the business accounts for 35 per cent of Eurocopter’s overall revenue “and is profitable too”.

The new division will draw together existing staff with a number of new hires under the new umbrella. Sesques told Jane’s that it “should start at the end of this year to provide global coverage for all of Eurocopter’s international presence”.

The decision to base the company in Ireland was “not financial or tax-based. It is a neutral base”, he stated.

(Nick Brown Jane’s Land Desk Editor, London)


Also I meant to post this a while back. Enda was guest of honour at the Irish Funds Industry Association (IFIA) conference 2011 (http://www.google.ie/url?sa=t&rct=j&q=ifia%20conference%202011&source=web&cd=2&ved=0CCIQFjAB&url=http%3A%2F%2Fwww.irishfunds.ie%2Fevents%2Fconf erences%2Fitem%2F1-the-annual-ifia-global-investment-funds-conference-2011%2F&ei=M877TvihDsGXhQeizOXWAQ&usg=AFQjCNGV5c-J-jaU6bPFh-iyX4yBeuVUDQ&sig2=FkAaL4ycPBvXingq0X-ddA&cad=rja).
It was an equal opportunities sycophantic affair so I'd wait a while after breakfast before watching his speech (http://vimeo.com/26059478).

This picture and caption from their site will give you a flavour.

http://img202.imageshack.us/img202/3608/endhedgespeech.png (http://imageshack.us/photo/my-images/202/endhedgespeech.png/)


There are some nice stats on their site (http://www.irishfunds.ie/statistics/) too.

http://www.irishfunds.ie/fs/img/statistics/rs-650x/irish-asset-exceed-a-trillion.JPG

[Dr. FIVE]

Also

The IFSC & The Shadow Banking System with Dr Jim Stewart - YouTube

[PaddyJoe]

Aircraft leasing is a biggie for the IFSC.

Ireland is a leading centre for aircraft leasing with over EUR 80billion Assets Under Management representing half of the world’s fleet of leased aircraft
http://www.ifscireland.ie/latest.html

The 2010 budget had an amendment to Section110 of the Tax Consolidation Act 1997:

CONSOLIDATION ACT: AIRCRAFT LEASING businesses and those working in the green finance area are two sectors that will benefit from the amendment to section 110 of the Tax Consolidation Act 1997 in yesterday’s Finance Bill.
Current tax relief relating to various securitisation and structured finance transactions is to be extended to assets relating to plant and machinery, commodities and carbon offsets.
Section 110 had been a central strand of the Government’s efforts to boost the financial services industry in Ireland and is perceived to have played a central role in developing the IFSC.

http://www.irishtimes.com/newspaper/ireland/2011/0122/1224288087565.html

[C. Flower]

h/t Conor McCabe for spotting some new arrivals.

http://dublinopinion.com/2011/12/26/the-ifsc-and-afghanistan-courtesy-of-eurocopter-internatrional-services/



Yes - that was well spotted. Manufacture, training, leasing >



Transport.

The transport helicopters are another vital part of the battalion. The AS532 Cougar is a well-known upgrade of the Puma – a twin-engine utility helicopter in extremely widespread civil and military use. The EC725 Caracal is an advanced Cougar (sometimes called the Super Cougar) that was originally designed for Combat Search and Rescue. As well as being newer than the Cougar it has the further advantage of carrying a forward looking infra red (FLIR) pod, greatly assisting with night time and low visibility operations.

All four helicopter types are built by Eurocopter, which makes the task of maintenance and support easier than if they came from different suppliers.

[TotalMayhem]

Eurocopters's heritage traces back to Messerschmitt and Focke-Wulf. The Irish Air Corps is flying two of their choppers.

[DCon]

IFSC Clearing House Group - Worth keeping Enda's response to the first question in mind.


Dermot McCarthy (Chair) Department of the Taoiseach
Michael Sludds (Secretary) Department of the Taoiseach
Barry O’Leary IDA Ireland
Breda Power Department of Jobs, Enterprise and Innovation
Brendan Bruen Financial Services Ireland
Brian Daly KPMG
David Fagan Legal and General
Deirdre Somers Irish Stock Exchange
Eamonn O’Dea Revenue
Fergus Murphy Financial Services Ireland, EBS
Gary Palmer Irish Funds Industry Association
Gary Tobin Department of Finance
Jim Byrne Revenue
John Feely Attain
Julie Sinnamon Enterprise Ireland
Kevin Cardiff Department of Finance
Kieran Donoghue IDA Ireland
Matthew Elderfield Central Bank of Ireland
Padraig Rushe Bank of Ireland
Pat Farrell Irish Banking Federation
PatWall PWC
Patrick Brady Central Bank of Ireland
Paul McGowan Chair of Funds Working Group
Peter Keegan Bank of America Merrill Lynch
Robert Richardson Pioneer Investments
Sean Gorman Department of Jobs, Enterprise and Innovation
Tim Hennessy Axis Capital
Tom Young BNY Mellon
Tony Golden Citi
William Beausang Department of Finance
Willie Slattery State Street

Insider's insiders

Pioneer still taping away there

Will they be replacing Cardiff when he moves to bigger and better things?

[Dr. FIVE]

Indeed and Dermot McCarthy. Assume their replacements will take over.
Where they will find people of a similar calibre is another matter ;)

[Dr. FIVE]

Appears here and London was big on the agenda during Enda's visit to Downing st

[PaddyJoe]

Confirmation of changes in the Finance Act to benefit the IFSC:

Most of the measures were aimed at simplifying how complex financial transactions are treated for tax purposes to make it easier to do business in Ireland, he said.
Among the measures are a reduction in double taxation in the corporate treasury and aircraft leasing sectors, enhancing the tax regime for Islamic finance, which was introduced in the 2010 Finance, and allowing Irish structured finance companies to invest in “forest carbon credits” to support the “Green IFSC” initiative.
The Government is also introducing changes to ease the administrative burden in relation to non-resident investors in Irish investment funds and extending relief for losses in groups to their companies outside the European Union and the European Economic Area.
The measures also address tax issues for investment funds arising from the UCITS IV EU directive introduced last July which allows funds to operate across the EU with authorisation from one state.
Accountants Deloitte said that the measures would allow financial services firms to expand their business in a competitive market.

http://www.irishtimes.com/newspaper/finance/2012/0209/1224311519199.html

[Frankie Lee]

Also

The IFSC & The Shadow Banking System with Dr Jim Stewart - YouTube (http://www.youtube.com/watch?v=oyf7ppw3-lc)

Apologies for bumping an old thread but I see Jim Stewart gets a hat tip in Nicholas Shaxson's excellent book Treasure Islands and did a site search.

I was just wondering has Jim been on television or radio much as I don't ever remember seeing him on Vincent Browne or anything. I also wasn't aware of the role the IFSC played in the collapse of Bear Stearns.

[PaddyJoe]

Aircraft leasing is a biggie for the IFSC.

http://www.ifscireland.ie/latest.html

The 2010 budget had an amendment to Section110 of the Tax Consolidation Act 1997:

http://www.irishtimes.com/newspaper/ireland/2011/0122/1224288087565.html

Interesting:

Thursday July 12 2012
AN Irish airline leasing firm has agreed terms to buy 30 jets from Boeing in a multibillion euro deal.

Avolon, the leasing company headed by Domhnal Slattery, said it has committed to buy 10 737 'MAX 8' aircraft, five 737 MAX 9s and 10 next-generation 737-800s.

It has also secured reconfirmation rights for five 737 MAX aircraft.

Avolon said the list price for the planes was $2.3bn (€1.9bn). In practice, however, firms rarely pay full price for a bulk order such as this.

On average, a deal such as this would see the buyer pay about 60pc of the full price. That would put a price tag on the deal of a little over $1.6bn.
http://www.independent.ie/business/irish/slattery-firm-agrees-to-buy-30-jets-3166654.html

[DCon]

Interesting:

http://www.independent.ie/business/irish/slattery-firm-agrees-to-buy-30-jets-3166654.html

Could it be the start of O'Leary taking Ryanair trans Atlantic?

[Dr. FIVE]

EADS is at the centre of a bribing scandal

http://www.ft.com/intl/cms/s/0/fd49b6f0-8af9-11e0-b2f1-00144feab49a.html#axzz1NwCauJ00

[Dr. FIVE]

JPM Irish profits up 78%

http://www.irishexaminer.com/business/jp-morgans-irish-profits-up-78-203806.html

Would be interesting to know how many staff the hedge fund have in Dublin.
In February 2009, the company was sold by JP Morgan Bank (Ireland) to another group company, JP Morgan International Finance Limited.

[PaddyJoe]

Matthew Elderfield warns the funds industry that the regulatory regime could tighten up in the run up to a common European banking authority. Mmm, maybe.

The regulatory landscape is set to change across the EU on the back of developments to create a single European banking supervisor, the deputy governor of the Central Bank Matthew Elderfield told a conference in Dublin yesterday.
He urged the Irish funds industry to contribute to this process by "offering constructive ideas to address the changing regulatory priorities of the post financial crisis world and by maintaining high standards of practice in the Irish market that ensure a continued reputation for high standards of investor protection"
http://www.irishexaminer.com/business/central-bank-warns-that-regulatory-landscape-is-set-to-change-across-eu-207345.html

[Dr. FIVE]

pffft

[Dr. FIVE]

a series of requests under the Freedom of Information Act this year show the extraordinary influence wielded by the [IFSC clearing house] group when it comes to Government policy

http://www.irishtimes.com/newspaper/ireland/2012/1008/1224325015200.html


The Government’s eventual position dovetailed exactly with that put forward by the financial industry’s lobbyists,

[Captain Con O'Sullivan]

allowing Irish structured finance companies to invest in “forest carbon credits” to support the “Green IFSC” initiative.

That'll be code for selling off forestry to Helvetia AG's shell company in Ireland. That carbon offset market is nothing but a corporate tax dodge to get around climate change levys. Effectively it means polluting corporations can buy and maneouver their way out of pollution charges or bills for spills by holding and trading carbon credits.

Companies like Helvetia, fronted in Ireland via their shell company and people like Bertie Ahern, are not interested in forestry. It is 'hedging' that they are interested in rather than forestry.

As for the rest of it- that list above only adds veracity to the theory I've been pushing- that the IFSC and the Irish Government are simply well aware that they are a money and tax-liability laundering centre for corporations.

[Greengoddess]

http://www.irishtimes.com/newspaper/ireland/2012/1008/1224325015200.html

At last I'm getting somewhere.......

[Slim Buddha]

Is this not simply the "government receiving expert opinion on a matter of great technical complexity"? :rolleyes:

[Captain Con O'Sullivan]

No, this would be the Government opening up its departments and allowing the IFSC to frame policy and regulation for itself.

And we all know how that will end. The fact that there is even an appearance of government at all in the relationship is laughable seeing as the IFSC is effectively beyond Irish jurisdiction. What could the Irish authorities to do some Madoff ponzi-schemer in the IFSC? Check whether his TV license is up to date?

The entire IFSC when it isn't a tax evasion operation is either ponzi scheming or laundering money.

When it grows up it wants to be a City of London.

[Dr. FIVE]

Here was the Clearing House Group members from page one. Cardiff & McCarthy have since moved on and been replaced by their successors.


Dermot McCarthy (Chair) Department of the Taoiseach
Michael Sludds (Secretary) Department of the Taoiseach
Barry O’Leary IDA Ireland
Breda Power Department of Jobs, Enterprise and Innovation
Brendan Bruen Financial Services Ireland
Brian Daly KPMG
David Fagan Legal and General
Deirdre Somers Irish Stock Exchange
Eamonn O’Dea Revenue
Fergus Murphy Financial Services Ireland, EBS
Gary Palmer Irish Funds Industry Association
Gary Tobin Department of Finance
Jim Byrne Revenue
John Feely Attain
Julie Sinnamon Enterprise Ireland
Kevin Cardiff Department of Finance
Kieran Donoghue IDA Ireland
Matthew Elderfield Central Bank of Ireland
Padraig Rushe Bank of Ireland
Pat Farrell Irish Banking Federation
PatWall PWC
Patrick Brady Central Bank of Ireland
Paul McGowan Chair of Funds Working Group
Peter Keegan Bank of America Merrill Lynch
Robert Richardson Pioneer Investments
Sean Gorman Department of Jobs, Enterprise and Innovation
Tim Hennessy Axis Capital
Tom Young BNY Mellon
Tony Golden Citi
William Beausang Department of Finance
Willie Slattery State Street

[Captain Con O'Sullivan]

It isn't often one looks down a list of personnel and the organisations they represent and realise that on this occasion at least it is the organisations which is the rogues' gallery. I see there is a man from the Revenue in there.

I'd say he isn't unduly overworked given that the majority of the private organisations there would pay very little tax by definition of them being in the IFSC.

Maybe he organises the cheques for 'rebates'. The 'double Irish sandwich' man.

[disability student]

IFSC Clearing House Group - Worth keeping Enda's response to the first question in mind.


Dermot McCarthy (Chair) Department of the Taoiseach
Michael Sludds (Secretary) Department of the Taoiseach
Barry O’Leary IDA Ireland
Breda Power Department of Jobs, Enterprise and Innovation
Brendan Bruen Financial Services Ireland
Brian Daly KPMG
David Fagan Legal and General
Deirdre Somers Irish Stock Exchange
Eamonn O’Dea Revenue
Fergus Murphy Financial Services Ireland, EBS
Gary Palmer Irish Funds Industry Association
Gary Tobin Department of Finance
Jim Byrne Revenue
John Feely Attain
Julie Sinnamon Enterprise Ireland
Kevin Cardiff Department of Finance
Kieran Donoghue IDA Ireland
Matthew Elderfield Central Bank of Ireland
Padraig Rushe Bank of Ireland
Pat Farrell Irish Banking Federation
PatWall PWC
Patrick Brady Central Bank of Ireland
Paul McGowan Chair of Funds Working Group
Peter Keegan Bank of America Merrill Lynch
Robert Richardson Pioneer Investments
Sean Gorman Department of Jobs, Enterprise and Innovation
Tim Hennessy Axis Capital
Tom Young BNY Mellon
Tony Golden Citi
William Beausang Department of Finance
Willie Slattery State Street

Insider's insiders

Pioneer still taping away there

Assistant Secretary

William Beausang now at Government Reform Unit

Willie Slattery... ex central banker in Dame street.

Deirdre Somers Chartered accountant. before she joined ISE.

Pat Farrell ex FF secretary.

Pioneer investments shades of Unicredit.... Govt deems it acceptable which translates into acceptable unethical governance/practices.

Eamonn o Dea- Assistant Secretary at Revenue (Ireland)

[Dr. FIVE]

http://www.irishtimes.com/newspaper/finance/2012/1012/1224325182542.html



* Value of funds serviced in Ireland: €2 trillion

* Corporation tax contribution (2011): €466 million

* Global financial centre ranking (Sept 2012): 49th

* Average salary for an IFSC employee: €60,100

[Greengoddess]

Lobbying very effective. I guess I'll be the target of all sorts soon.

[PaddyJoe]

Lobbying very effective. I guess I'll be the target of all sorts soon.

I wouldn't get too worried about that. You're not carrying a load of unwashed skeletons in your cupboard, are you? :)

[Greengoddess]

I wouldn't get too worried about that. You're not carrying a load of unwashed skeletons in your cupboard, are you? :)
Sure, I can hear them rattling as we ' speak '!;)

[Captain Con O'Sullivan]

Value of 'funds serviced in Ireland' - 2trillion. Thats a lot of washing. And note the careful lie- none of those funds are 'in Ireland'. They are 'offshore' as regards the Irish state is concerned.

Average IFSC employee salary 60K- I notice there is no figure in there for Irish people employed by the IFSC which is an odd omission from a document looking to flatter the IFSCs position 'offshore' of Ireland.

[PaddyJoe]

Sure, I can hear them rattling as we ' speak '!;)

Long disposed of, so:)
Good to see that there's some part of Labour left that can see the rationale behind a financial transaction tax and that hasn't been bludgeoned into silence by the big lads in FG.

[DCon]

Just watching the Keiser Report. Max sees Dublin becoming the centre of bank fraud as the banks say "look, we cleaned up our Operations in London and New York'

The show is below

http://www.youtube.com/watch?feature=player_embedded&v=STVNM-Obup8

[disability student]

It's a huge laundering front as Lehman bros had four companies registered in the IFSC in the past. The financial regulator looked other way as it goes on. Hence the need for FTT.

All they need is to set up a legal entity company with legal paperwork provided by solicitors here as it only takes few employees to manage billions in their IFSC office. It's done by IT systems as it's manned by a few staff that's all it takes. Their job creation is low not as it's claimed to be high.

Noonan refusal to join is quite plain & clear as the present govt didn't want to lose out in the form of tax take. Their taxes usually occur around every November as you would see the accounts provided by the exchequer.

Know some guys out there working in Fund adminstration as there are lot of companies dealing with that in IFSC. Roomey had some of his investment there in the IFSC but it was ignored by the irish papers.

Interesting times come US election year as it would sharpen the focus on the IFSC re Rommey.

[Dr. FIVE]

Thats a lot of washing.


Great post here from Conor McCabe > SNAPSHOTS OF THE MODUS OPERANDI OF THE IRISH FINANCIAL SERVICES SECTOR: (http://dublinopinion.com/2012/08/14/snapshots-of-the-modus-operandi-of-the-irish-financial-services-sector/)

http://dublinopinion.com/wp-content/uploads/2012/03/421220_10150652225084886_819854885_8835863_1529499 470_n.jpg

[Dr. FIVE]

http://www.irelandinc.com/wp-content/uploads/2012/09/Cover_FS503.jpg

[Dr. FIVE]

Interest post from Soundmigration

http://soundmigration.wordpress.com/2012/10/26/ifsc-clearing-house-what-the-irish-times-doesnt-say-and-why-it-matters/

[Captain Con O'Sullivan]

That is an excellent article indeed. Look at this quote from within it;

'Other movers and shakers are Aidan Brady, chief executive of Citigroup , Mike Ryan, of Merrill Lynch Capital Markets Bank, Giovanni Lombardo of Pioneer, Gerhard Bruckermann, of Depfa, Henning Ludolphs of Hannover, Rick Hodgdon of Transamerica, Frank Monks of Nexgen, Rachel Panagiodis of Hansard, Michael Brady of XL, and John Gilsenan of Porsche, straddling both treasury and insurance.'

Bloody Pioneer- the 'wealth management arm' of Unicredito. And of course Depfa in there as well.

The IFSC is running the Irish Government. No wonder Inda got 'European of the year'. He is a corporate employee.

[Greengoddess]

That is an excellent article indeed. Look at this quote from within it;

'Other movers and shakers are Aidan Brady, chief executive of Citigroup , Mike Ryan, of Merrill Lynch Capital Markets Bank, Giovanni Lombardo of Pioneer, Gerhard Bruckermann, of Depfa, Henning Ludolphs of Hannover, Rick Hodgdon of Transamerica, Frank Monks of Nexgen, Rachel Panagiodis of Hansard, Michael Brady of XL, and John Gilsenan of Porsche, straddling both treasury and insurance.'

Bloody Pioneer- the 'wealth management arm' of Unicredito. And of course Depfa in there as well.

The IFSC is running the Irish Government. No wonder Inda got 'European of the year'. He is a corporate employee.
Shocking stuff. Worse then my worst imaginings.

[Captain Con O'Sullivan]

I don't know how long you've been following the forum GG but Depfa and Pioneer are familiar names at this point to some of us.

Unicredito were the bank at which a whistleblower who is still largely being ignored by Michael Noonan's department pointed out were regularly exceeding liquidity regulations- as have Bank of Ireland since, also without comment from the authorities in Ireland it appears.

I could say a fair bit more about Pioneer and that Unicredito bank but I have to watch the legal position in comments here.

[Apjp]

Shocking stuff. Worse then my worst imaginings.

Who did you think ran the country? Labour??? Frankfurts way indeed. Gilmore is no doubt complicit here somewhere, or else just turns a blind eye to it as our man Enda gets all the gongs.

[disability student]

Unicredit adverts were regularly seen on Champ league football pitches. Irish division was run by Paddy Hillery's son ... another FF connection.

IFSC was the brainchild of Dermot Desmond a close friend of Haughey as i wonder does he get royalty payments re IFSC since it's inception??

Irish govt were bloody lucky when Depfa went bust bringing down a Germany company who had bought them a year before. If they hadn't bought it, all the debts re bust would be soaked by our taxpayers.

[Frankie Lee]

Irish govt were bloody lucky when Depfa went bust bringing down a Germany company who had bought them a year before. If they hadn't bought it, all the debts re bust would be soaked by our taxpayers.

They would have had a more awkward job explaining how Depfa was of "systemic importance" to the Irish economy.

[Dr. FIVE]

Irish govt were bloody lucky

insofar as it would easily have been designated 'our' responsibility if the German and ecb thought they could have got away with it.
Fear of attracting the wrong kind of questions probably got us off the hook.

German press and possibly the ECB were still had it on our balance sheet (http://www.politicalworld.org/showthread.php?t=5643) in 2010.
Duel accounting and propaganda motives no doubt

[DCon]

They would have had a more awkward job explaining how Depfa was of "systemic importance" to the Irish economy.

I would love to know hw much of Deutsche Banks massively leveraged book is being run through an Irish company

[Dr. FIVE]

+1

[Dr. FIVE]

Golem has three excellent posts on bank bailouts recently for anyone who missed.

Good in this thread as anywhere else I suppose

http://www.golemxiv.co.uk/

[Greengoddess]

In the Dail today. Answer to questions on the Clearing House Group:

*
An Taoiseach*: In line with the Government’s focus on increasing the transparency and openness of government, a number of measures are being taken with regard to the IFSC Clearing House Group to ensure transparency and accountability in its work. First, the minutes of meetings of the group which have taken place since my election as Taoiseach to the end of September this year will shortly be published on my Department's website and www.merrionstreet.ie. Second, a report on the work of the group during this period will also be published on the websites. Third, I have asked the Secretary General of my Department who is chairman of the group to write to the Chairman of the Oireachtas Joint Committee on Finance and the Public Service offering to brief it on the work of the group. These initiatives will ensure increased awareness of the continued importance of the international financial services sector to the economy and highlight the progress being made by the private and public sectors working together in creating and protecting jobs for Ireland, a priority which is shared by all parties in the House.
*

[Dr. FIVE]

http://www.irishtimes.com/newspaper/ireland/2012/1120/1224326839464.html


This year 21 changes were made to the Finance Act at the behest of the industry, which provided draft legislation for some of its proposals.

A tax break for school fees for children of IFSC executives who had moved to Ireland was opposed by the Revenue but included in the final legislation after further representations were made by the industry through the Clearing House Group mechanism.

The group also worked in concert with Government in opposing European Commission plans for a financial transaction tax.

[Dr. FIVE]

A look at the International Financial Services Centre (IFSC) in Dublin and explore issues around tax, regulation and democratic oversight. Guests include Shane Brett, Harry McGee and Professor Jim Stewart.


https://www.youtube.com/watchv=dfRA_BBqb5w

[Dr. FIVE]

Here is the report mentioned and written by Jim Stewart

http://visar.csustan.edu/aaba/JimStewart2006.pdf



This paper examines aspects of a specialist financial firm known as a Treasury Management Firm. These firms are of interest for a variety of reasons as they are central to the organisation of global financial flows within an MNC. However in addition because of recent judgements by the European court of Justice relating to two Treasury Management Firms operating at the IFSC in Ireland, the nature of such firms have become central to the legally recognised location of a firm within the EU and to issues relating to tax competition between different member States.

Such issues are of great interest to non EU countries because of their implications for the use of tax havens and international tax competition. Treasury management firms exist as a wholly owned subsidiary of many MNCs and are large in terms of assets but they often have zero employees.

[PaddyJoe]

Interesting:

http://www.independent.ie/business/irish/slattery-firm-agrees-to-buy-30-jets-3166654.html

Domhnal Slattery taking legal action against Friends First:

Businessman Dómhnal Slattery has sued Friends First Life Assurance Company over allegedly threatening to pursue him for almost $10 million under an alleged guarantee over funds issued to buy a hotel in the United States.

The case relates to a $14.05 million loan advanced by Friends First to Claret Capital in March 2008 via a promissory note to fund the purchase of the St Regis Hotel in Washington DC.

He claimed the July 2009 deed provides Friends First with limited recourse to him arising from his alleged guarantee of March 2008.

This related to a promissory note via which Friends First advanced about $9.5 million to Claret Capital Holdings LLC, a Delaware company, towards the purchase of the St Regis Hotel.

He wants a number of declarations, including that he is not personally indebted to Friends First for $9.9 million plus interest and that Friends First’s recourse is strictly limited to the value of 256 shares in a company called Jetbird Ltd, an aviation firm launched by Mr Slattery.
http://www.irishtimes.com/newspaper/finance/2012/1205/1224327508631.html

[PaddyJoe]

Interesting stuff from Colm Keena today:

Celestial Green, the Dublin carbon credits business involved in deals with indigenous tribes in the Amazon, at one stage envisaged its rights there creating credits with a value of up to $32 billion (€24 billion), according to filings to the US Securities and Exchange Commission (SEC).

A spokesman for the company said yesterday it was “surprised” that a case was being taken in Brazil against one of its deals there.

A federal attorney in the Brazilian state of Rondonia filed a lawsuit on December 11th which seeks to cancel a contract signed by Celestial Green Ventures and the Awo Xo Hwara indigenous community.

As part of the deal, the Irish company agreed to pay the local group $13 million over 30 years for the rights to explore carbon credits in an area of 260,000 hectares of rainforest.

Celestial Green Ventures plc is owned by a number of shareholders, with the largest shareholding held by Ciaran Kelly, the company’s chief executive.

Potential revenues

During 2010 Mr Kelly became a director of a Florida company, Apollo Capital Group Inc, which made filings to the SEC about the Brazilian carbon credit projects. If successful, the projects could create potential revenues of up to $32 billion, the filings said.

Mr Kelly and a number of other directors of Celestial Green were also directors of Apollo.

However, at the end of that year the relationship between Mr Kelly and Apollo broke down, according to Mr Collier.He said Celestial Green Ventures is “very positive” about its Brazilian projects.
http://www.irishtimes.com/newspaper/finance/2012/1221/1224328081555.html

[PaddyJoe]

Lots more info here on the background to this Celestial Green story:
March 2012
Yesterday, Márcio Meira, president of the Brazilian government’s National Indian Foundation (FUNAI), held a press conference at FUNAI’s headquarters in Brazilia. Point Carbon reported that “Brazil’s top judge may annul 30 deals that give investors legal title to carbon credits by avoiding deforestation in the Amazon.”

The press conference took place after reports in the Brazilian and international media about an Irish company called Celestial Green Ventures, that claims to have the carbon rights to an area of 20 million hectares of forest in the Brazilian Amazon.

Celestial Green Ventures has signed a contract with the Munduruku Indians in Para, under which the indigenous communities are promised a total of US$120 million over a 30 year period.

The Brazilian not-for-profit investigative journalism website Pública interviewed Meira the day before the press conference. In the interview Meira confirms that FUNAI was not aware of what happened in the meeting between Celestial Green Ventures and the Munduruku Indians on 12 September 2011. FUNAI was not present at the meeting.
http://www.redd-monitor.org/2012/03/15/celestial-green-ventures-contracts-are-not-valid-says-brazils-national-indian-foundation-funai/

[PaddyJoe]

The Green IFSC thinks highly of Celestial, it seems

Celestial Green Ventures, a Dublin-based sustainable forestry development company, is preparing to create 30 new jobs, as a result of the global growth in green investments.

Ireland's Green IFSC initiative has welcomed the news.

Celestial Green Ventures develops REDD+ forestry projects from which carbon offsets are produced and subsequently traded.

In 2010, the company listed on the Frankfurt Stock Exchange. It has a paid-up share capital of €10.1m with an authorised share capital of €23.7m. Celestial Green Ventures is now also considering listing on the Enterprise Securities Market (ESM) of the Irish Stock Exchange.

http://i49.tinypic.com/125ri2f.jpg

http://siliconrepublic.com/clean-tech/item/26024-celestial-green-ventures-to

[DCon]

Bilderberg John is having his IFSC PR gig extended


Former taoiseach John Bruton has had his mandate as president of IFSC Ireland extended by another two years until the end of 2014.

Mr Bruton took up the role in September 2010 and has in effect acted as a roving ambassador for the International Financial Services Centre, travelling abroad to promote the centre to foreign investors, often in association with IDA Ireland.

http://www.irishtimes.com/newspaper/finance/2012/1224/1224328150588.html

[Apjp]

How are any of these 23'000 IFSC jobs to our benefit if all they benefit is fraud?

[Greengoddess]

Oh dear.
http://www.irishexaminer.com/business/corporate-investment-proposal-rejected-219720.html

[DCon]

Oh dear.
http://www.irishexaminer.com/business/corporate-investment-proposal-rejected-219720.html

well said


Aoife Ní Lochlainn, policy analyst with the independent economics think tanks TASK, said: “These minutes starkly illustrate the high-level access and influence that the financial sector enjoys. There is a risk that the forthcoming Finance Bill could weaken support for a deal on Ireland’s legacy banking debt at EU-level and endanger Ireland’s international reputation if it facilitates companies or funds to undermine the tax bases of our European partners.”

Well done Greengoddess


Last year, under pressure from Ms Childers and others, Taoiseach Enda Kenny agreed to publish the minutes of the Clearing House Group from Mar 2011 to Sept 2012 and committed to publishing the minutes of subsequent meetings online

[C. Flower]

The note said the department understood the industry’s disappointment but highlighted that virtually all the other issues it proposed were being developed

Oh dear, indeed. And well done for getting a bit more transparency into the activities of the Clearing House Group.

[Dr. FIVE]

according to the Irish Left Review the 30,000 jobs figure is one compiled by Ibec.

Govt admitted they had no independent or official number in the Dáil last year

[Dr. FIVE]

Padriac White and the Establishment of the IFSC

http://www.godsawayonbusiness.com/2013/04/padriac-white-and-establishment-of-ifsc.html

[Dr. FIVE]

Complete and utter PR bullshit

http://www.rte.ie/news/2013/0504/390367-aib-michael-somers/



The Deputy Chairman of Allied Irish Bank Dr Michael Somers has said he is dismayed to see major international banks pulling out of the International Financial Services Centre in Dublin.

He said that banks such as Goldman Sachs are pulling out because of heavy regulation.

Dr Somers said that the banks pulling out will not say why they are doing this publicly.

He said that they have told him privately that they are leaving because of heavier financial regulation here.

Speaking in an interview on RTÉ’s The Business with George Lee Dr Somers said that key people who he regards as "systemically important" to AIB are now leaving the bank.

He said that this was due to the Government cap on bankers pay.

Dr Somers said it is increasingly difficult to get people to join the bank.

He said that AIB has had no chief financial officer for a long time over the issue of pay and that it was an extraordinary position for a major financial institution to be in.

Dr Somers was Chief Executive of the National Treasury Management Agency for almost 20 years.

He is on the board of AIB on behalf of the National Pension Reserve Fund on the instruction of the Minister for Finance Michael Noonan.

Dr Somers said that he is not anxious to see AIB writing off loads of debt any time soon.

He said that the money that would be written off is not the bank's money and said It is taxpayers money that had been put into the bank by the National Pension Reserve Funds.

Dr Somers said he wants to see as much of that money as possible coming back to the Pension Fund on behalf of taxpayers.

He said that it is difficult to see where economic growth is going to come from.

He said Irish banks have a shrinking mindset and that journalists are not probing them enough about the amounts they are lending to the business sector.

Ireland, he said, has some great entrepreneurs but the unfortunate thing is that most of them are now living abroad.

Meanwhile, The Minister for Communications Pat Rabbitte, has ruled out the removal of the €500,000 cap on bankers pay.

He said that the Government made no apologies for the cap and that nobody would tell him a €500,000 salary is not enough to find people with the ability to do the job.

Separately a spokesperson for the Department of Finance has said additional regulation for banks are being brought in right across the EU.

The spokesperson said Ireland is committed to implementing them.

[DCon]

AIB, a bank, Chairman says over-regulation in the IFSC is forcing other banks to leave


International banks such as Goldman Sachs are pulling out of the International Financial Services Centre because of over-regulation, the deputy chairman of AIB Dr Michael Somers has said.

http://www.independent.ie/irish-news/red-tape-forcing-banks-to-quit-ifsc-says-aib-chief-29242993.html

[Dr. FIVE]

a joke interview with Sean Whelan and John Bruton there


http://www.rte.ie/news/business/2013/0510/391601-john-bruton-finance/

[PaddyJoe]

a joke interview with Sean Whelan and John Bruton there


http://www.rte.ie/news/business/2013/0510/391601-john-bruton-finance/



He said such regulatory burdens would not be needed if "there was more emphasis on ethical judgement in business, if people took ethical decisions and accepted responsibility for them".
Excuse me while I fall about the place laughing.

[DCon]

More over-regulation rhetoric. The big banks must be laying the pressure on their political minions


Ireland may have over-corrected how it regulates banks and financial services firms and should be “very careful” with further regulations to avoid losing business overseas, one of five commissioners at the US Securities and Exchange Commission, the country’s markets regulator, has warned.

Daniel Gallagher, one of two Republican commissioners at the SEC, said regulatory change has been “pretty intense” over the last three years in response to the financial crisis and that this should be reviewed before further regulations are introduced.

“At some point it’s got to stop and people need to evaluate what is the impact globally and domestically; I think Ireland has hit that point,” he said.

http://www.irishtimes.com/business/sectors/financial-services/ireland-may-have-over-corrected-on-financial-regulation-us-regulator-warns-1.1395038

[Dr. FIVE]

Missed this during the week > http://www.irishtimes.com/business/sectors/financial-services/no-desks-no-staff-no-tax-ireland-s-shadow-banks-1.1388923

As deep as you would expect Shadow banking in the IT but still.


So many companies are listed in the marble-tiled, plant-filled foyer that there are no brass plates or printed guides. Instead, it takes a computer to search through them all. This is 5 Harbourmaster Place, a Celtic Tiger-era chrome-and-glass building at the edge of the International Financial Services Centre, in Dublin.

It might not look big enough to house them all, but this modest-sized building is home to about 250 companies. One is Orpington Structured Finance I. It has gross assets of €1.7 billion, which would make it one of the most valuable firms in Ireland. Except it has no employees. It has no buildings or machinery. Nor does it pay any tax.

[PaddyJoe]

Missed this during the week > http://www.irishtimes.com/business/sectors/financial-services/no-desks-no-staff-no-tax-ireland-s-shadow-banks-1.1388923

As deep as you would expect Shadow banking in the IT but still.
Really good piece. I posted the link on GG's thread as well.

[Dr. FIVE]

One comment below



Every time that an article on Ireland's finances appears in the Frankfurter Allgemeine Zeitung, a guy called Klaus Wege writes a long comment detailing all the intricacies of our tax and financial regulator systems described above and describing Ireland as a Steuerschieberbahnhof (tax evaders' transit station) and a Briefkasteninsel (letter box island). He gets plenty of likes.

dear oh dear


Still recommend picking up a copy of Irish Left Review if anyone hasn't yet. Lays the history, thinking & effect of the IFSC out.