Public Accounts Committee framework for a Banking Inquiry

[PaddyJoe]

Released this evening:

Report on the crisis in the domestic banking sector:
A preliminary analysis and a framework for a banking inquiry

The collapse of the domestic banking sector in Ireland has created the greatest challenge to the State since it was founded in 1922. In March 2011, the Governor of the Central Bank of Ireland described it as ―one of the costliest banking crises in history

Having regard to all of these issues, the Committee strongly believes that a parliamentary inquiry into the banking crisis should be held. It also believes – on foot of the advice of Senior Counsel – that an inquiry can be undertaken successfully under the existing constitutional and statutory framework. It recognises, however, the limitations of an inquiry as a result of the complex legal landscape created by the Abbeylara judgment as well as issues such as Cabinet confidentiality and possible criminal proceedings.

http://www.oireachtas.ie/parliament/...rt---FINAL.pdf

[Spectabilis]

Are they saying (Abbeylara/confidentiality/criminal proceedings) that it won't be worth conducting the enquiry or are we being reminded of our vote at the referendum?

[Baron von Biffo]

My eye is immediately drawn to Sean Fleming. He was Financial Controller of FF in Haughey's time so I don't have huge expectations of his ability to unearth dodgy financial doings.

[Baron von Biffo]

Are they saying (Abbeylara/confidentiality/criminal proceedings) that it won't be worth conducting the enquiry or are we being reminded of our vote at the referendum?

Wouldn't be at all surprising if this was used as an excuse to 'revisit' that vote.

[Dr. FIVE]

The excuse.


So what's wrong with the aul police and courts or do they just not have parties in the local elections?

[Stanley 2]

Would much rather a French style investigating Judge leading and directing a police enquiry, Justice Peter Kelly would fit the bill, but then he is rather busy.

[WhistleblowerIRL]

Here is something for the esteemed committee to consider:

On February 23rd. this year I met with Central Bank of Ireland officials together with Michael Smith of Village magazine. Both of us had to undertake that the meeting would not be recorded in any way (this was a written request by the CB). One has to wonder why that was in an age of alleged transparency.

During the course of the meeting, CB officials admitted to having had sight of further liquidity breaches at UniCredit Ireland. However, UniCredit Bank Ireland has not been sanctioned by the Central Bank of Ireland in any way. Furthermore, a letter received by Michael Smith at the beginning of last month makes it clear that the Central Bank will not provide minutes of our last meeting. The financial regulator's appetite for revealing the truth is quite obvious.

Perhaps this might have something to do with the fact that Dr. Brian Hillery (ex FF TD), who was the chairman of UniCredit Ireland at the time of these breaches, is now a board member of the Central Bank of Ireland:

Appointments by the Tánaiste and Minister for Finance to the Central Bank and Financial Services Authority of Ireland

Brian Cowen T.D., Tánaiste and Minister for Finance announced today the appointment of Dr. Brian Hillery and Mr. Dermot O’Brien as Directors of the Central Bank and Financial Services Authority of Ireland.

...Dr. Brian Hillery is currently Chairman of both Independent News and Media plc and Providence Resources plc and, until this appointment, was Chairman of UniCredit Bank (Ireland) plc.

http://www.finance.gov.ie/viewdoc.asp?DocID=5278

Strictly speaking, it could be argued that I am not a whistleblower. I did not corner a CB official in an alley in Temple Bar and told him secretly of liquidity breaches at UniCredit Ireland, where I was the Risk Manager. I came through the front door of the Central Bank of Ireland and handed over an official letter notifying the CB of a liquidity breach which was twenty times the permitted deviation from the minimum limit.

As neither the Central Bank, nor the bank itself took action to rectify the situation, I resigned from my position and stated issues of integrity at the bank in my letter of resignation.

My resignation took place in September 2007, a year before the entire Irish banking system ran completely dry of liquidity. Just as I was responsible for monitoring liquidity levels at UniCredit Ireland and ensuring they complied with the terms of our banking license, each of the domestic Irish banks would have had risk officers and risk committees at board level whose job it was to ensure compliance with legal requirements.

To read more about my story, please see:

Still waiting for the truth from the regulator - Village magazine, Dec 2010
http://www.villagemagazine.ie/index....the-regulator/

My interview on ABC TV in Australia, shown last November:
http://www.abc.net.au/foreign/content/2011/s3367080.htm

My own blog contains links to the questions raised by David Norris in the Seanad and by Joan Burton (in writing and only after I made our meeting public knowledge):
whistleblowerirl.blogspot.com

[WhistleblowerIRL]

The commitee might also want to compare and contrast between the liquidity regulations issued in 2006 and those issued in 2009:

2006:
http://www.centralbank.ie/regulation...ity%20Risk.pdf


2009:
http://www.centralbank.ie/regulation...09%20Final.pdf


It is worth noting that the 2009 document refers to the liquidity regulations as 'new', even though they had been issued in 2006 for implementation in 2007. The 2009 document makes no reference to the 2006 document whatsoever. The legal preamble (section 1) of the 2009 document goes all the way back to 1942 (!), but not a word about 2006/7.

Notice that the implementation dates paragraph in the 2006 document (par 9.4) has simply vanished from the 2009 document.

This might have something to do with the fact that both documents state very clearly that the penalty for breaching these requirements could be:

"...imprisonment for a term not exceeding 5 years"

- Paragraph 10 in both documents.

Remind me how many bankers in Ireland have been imprisoned? None, I believe. Are we still looking for evidence? The fact that the entire Irish banking system collapsed 4 years ago is obviously not enough.

PS
The links to the CB documents have changed on occasion. I will be happy to email pdf copies of these documents to whoever might be interested. Email me at:
Whistleblower.IRL@gmail.com

[C. Flower]

The commitee might also want to compare and contrast between the liquidity regulations issued in 2006 and those issued in 2009:

2006:
http://www.centralbank.ie/regulation...ity%20Risk.pdf


2009:
http://www.centralbank.ie/regulation...09%20Final.pdf


It is worth noting that the 2009 document refers to the liquidity regulations as 'new', even though they had been issued in 2006 for implementation in 2007. The 2009 document makes no reference to the 2006 document whatsoever. The legal preamble (section 1) of the 2009 document goes all the way back to 1942 (!), but not a word about 2006/7.

Notice that the implementation dates paragraph in the 2006 document (par 9.4) has simply vanished from the 2009 document.

This might have something to do with the fact that both documents state very clearly that the penalty for breaching these requirements could be:



Remind me how many bankers in Ireland have been imprisoned? None, I believe. Are we still looking for evidence? The fact that the entire Irish banking system collapsed 4 years ago is obviously not enough.

PS
The links to the CB documents have changed on occasion. I will be happy to email pdf copies of these documents to whoever might be interested. Email me at:
Whistleblower.IRL@gmail.com

McCreevy recently let the cat out of the bed that Irish banks were knowingly and repeatedly allowed to trade when not viable on more than one occasion.
I hope he will be asked to give details of what he knows about this.

http://www.independent.ie/opinion/co...h-3140328.html

[unspecific]

Nessa Childers MEP posts here as Greengoddess. What did Eamon Gilmore and Enda Kenny tell her once she passed on this story?

[WhistleblowerIRL]

@unspesific715

I talked to Nessa Childers at the 'Media Diversity' conference which she chaired in Dublin on Feb. 6th. this year. As per her request, I emailed her with all the necessary information. I'm still waiting for her to get back to me...

[ang]

The excuse.


So what's wrong with the aul police and courts or do they just not have parties in the local elections?

All extend and pretend until we vote the right way in Oireachtas inquiries Referendum.

Us little people just don't understand that its only our politicians wot can get to the bottom of the banking mess those pesky judges may hold people accountable and that would open a whole new can of worms for the political bankers............

[DCon]

McGuinness

Civil service cabal in 'plot to nobble bank probe'

PAC boss says 'reactionary, unprofessional, inefficient top managers are protecting pay, perks and pensions'

PAC boss fails to say that he and his Party oversaw the appointment of these top managers

http://www.independent.ie/national-n...e-3161603.html

[DCon]

McGuinness also blames civil servants but fails to mention his former boss(es), or Lenihan

I have no doubt that this opinion is shared by many of the senior civil servants. They too would say that PAC is doing too much -- too much digging, too much investigating, too much searching for the truth, and too much tugging at the veil of half answers, memory lapses and obfuscations that covers a mind-boggling degree of incompetence and inefficiency, for which no one is ever found responsible.

http://www.independent.ie/opinion/an...y-3161466.html

[Baron von Biffo]

McGuinness

PAC boss fails to say that he and his Party oversaw the appointment of these top managers

http://www.independent.ie/national-n...e-3161603.html

McGuinness also blames civil servants but fails to mention his former boss(es), or Lenihan

http://www.independent.ie/opinion/an...y-3161466.html

Interesting that the Sindo is pushing heavily for a re-run of Howlin's Star Chamber referendum. They've even provided a Quantum Research 'poll' that purports to show huge levels of support for the idea.

McGuinness has already prejudged the matters to be investigated and he voted for the Taoiseach and Finance Minister who bear ultimate responsibility for the events in question. That's enough to show the danger of giving politicians the power to run quasi judicial inquiries.