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Thread: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

  1. #16
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    Default Re: Anglo Irish and Banking Crisis Timeline - Who Lobbied Government Before the Guarantee ?


    Who lobbied before the Guarantee? Most people in Ireland had no way of knowing how serious the situation was, what possible options there were, and most had no access to key Government ministers, advisers or civil servants. This was for insiders. There is a good bit of information available about who had the "listening ear" of the political decision makers.

    Detailed Independent account dated October 4th -
    http://www.independent.ie/national-n...s-1490370.html

    A number of other individuals have been named (April 2012) as having met top D o F officials in the immediate days before the Guarantee. A Sunday Independent special investigation has also established the identities of a host of bankers, stockbrokers and business figures who had seemingly free access to Mr Lenihan and the Department of Finance in the hours, days and weeks in the run-up to and after the night of the guarantee. They include Tony Garry, chief executive of Davy stockbrokers, whose clients included Anglo Irish Bank; Tiernan O'Mahony, former head of Treasury in Anglo Irish Bank; and Leslie Buckley, vice-chairman of Digicel, then Anglo's sixth-biggest borrower, (associated with Denis O’Brien, note, C.F.).[/quote]

    Details of meetings pre-Guarantee (April 2012) http://www.independent.ie/national-n...e-3095261.html

    September 29th, 2008, Mr FitzPatrick and Mr Drumm met Mr Gray, an economic consultant, on Monday, hours before the Government agreed on the €440 billion bank guarantee. Anglo had sought a €1.5 billion short-term loan from the Central Bank, which had not yet made a decision on the request. It is understood that the bank approached Mr Gray in the belief that he would make representations to the Government to intervene to prevent the bank running out of cash.http://www.irishtimes.com/newspaper/...287489602.html

    Two days after the guarantee, on Wednesday, October 1, Doyle met with Ulster Bank's Cormac McCarthy and the bank's Irish chairman, Sean Dorgan.

    September 29, 2008: Crisis meeting at Department of Finance after Anglo Irish Bank loses €4 billion in deposits over a matter of days. Allied Irish Banks and Bank of Ireland push for nationalisation of Anglo. http://www.independent.ie/opinion/an...s-2133558.html

    29th September 2008

    Cowen’s redacted calls and texts for the 29th and 30th September -duration and network.

    http://thestory.ie/2012/05/20/brian-...28The+Story%29

    Lenihan had budget-related meetings that day, including one with Begg and O'Connor at 5 o'clock. They said he was calm and only mentioned the bank crisis in passing.

    http://www.independent.ie/business/i...-29436037.html


    29th September 2013 - Bank Guarantee Evening - Who Lobbied ?

    The links are to Independent and ST reports which appeared a few days after the guarantee and quote high level sources as saying:
    1.ST:
    “The debate was not confined to the banking community. The same source said Dermot Desmond and Denis O’Brien, two of Ireland’s most prominent businessmen, both phoned the Department of Finance to argue against nationalisation in the interests of the economy. 2. Indo: The officials split up into sub-groups to discuss specific issues, and were told by Brian Cowen to present him with a range of options which the Government could choose from. Interestingly, it has emerged that the option chosen could have been the inspiration of an outside figure. Senior government sources have said the suggestion came from JP McManus, while Dermot Desmond's name has also been associated with the plan. David McWilliams has led the charge to claim the credit for it, much to the ire of Lenihan and his officials.”

    Denis O’Brien was on the phone that night as well apparently:
    http://www.timesonline.co.uk/tol/new...fset=48&page=5
    The debate was not confined to the banking community. The same source said Dermot Desmond and Denis O’Brien, two of Ireland’s most prominent businessmen, both phoned the Department of Finance to argue against nationalisation in the interests of the economy.

    “However, even more intriguing is the confirmation this weekend that former Irish finance minister and now EU Commissioner Charlie McCreevy played a role in the formulation of the plan.” http://www.timesonline.co.uk/tol/new...fset=48&page=5

    Detailed Independent account dated October 4th - http://www.independent.ie/national-n...s-1490370.html

    29th September 2008Mr FitzPatrick and Mr Drumm met Mr Gray, an economic consultant, on Monday, September 29th, 2008, hours before the Government agreed on the €440 billion bank guarantee. Anglo had sought a €1.5 billion short-term loan from the Central Bank, which had not yet made a decision on the request. It is understood that the bank approached Mr Gray in the belief that he would make representations to the Government to intervene to prevent the bank running out of cash. http://www.irishtimes.com/newspaper/...287489602.html

    Night of the Bank Guarantee: Alan Gray rings Cowen ? (Source Daily Mail ?) Meets Lenihan

    http://www.irishtimes.com/newspaper/...279263728.html

    “We have also confirmed that it was AIB, not Bank of Ireland that instigated the meeting with Government on the night of September 29th -- a clear indication that the former bank was in greater trouble than was realised at the time. AIB has declined to respond to questions put to it by the Sunday Independent this weekend.”

    http://www.independent.ie/irish-news...-26848122.html

    Did Sean Quinn lobby ? There is no evidence as yet, but the possibilities are discussed here by John McManus - http://www.irishtimes.com/business/s...tion-1.1477777

    29th September 2008

    "C. Flower Re: Public Accounts Committee - 2008 Report of the C & AG - Department of Finance Grilled

    Questioned by Pat Rabitte, Cardiff confirmed that B o I and Allied Irish asked for a Guarantee on the 29th September at their meeting. PR asked if those banks would have had prior access to the options being considered by the Department of Finance /Domestic Stability Group. Kevin Cardiff said not, that the work was done by a small discrete group.

    Seems a bit of a coincidence, so.” http://www.politicalworld.org/showth...l+Lynch+Report
    Last edited by C. Flower; 13-12-2013 at 08:12 AM.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  2. #17
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    Default Re: Anglo Irish and Banking Crisis Timeline - Green Jersey Still Going On

    Sunday 28th Sept. 2008 Documents not released

    http://s3.documentcloud.org/documents/282447/bank-docs-pac-all.txt

    Sunday 28/09/2008 14.54 Sunday 28/09/2008 15.04 Monday 29/09/2008

    E-mail from NTMA to Department forwarding e-mail from PwC to NTMA re liquidity scenarios for banks

    E-mail from PwC to Department with attachment - summary of discussions on credit positions

    Letter from Attorney to Minister re State Not released - the document is Aid and Guarantee Issue subject to legal privilege as it contains advice received from the Attorney E-mail from Department to Office of the Attorney General with attachment re special share vs share transfer E-mail from Arthur Cox to Department re powers of Central Bank

    Not released - the document is subject to legal privilege as it reveals AGO's advice Not released - the document is subject to legal privilege as it was prepared by the Department's legal advisors legal privilege

    Not released - institution specific information prepared by PwC for the Financial Regulator

    Not released - the document is subject to legal privilege as it was prepared by the Office of the Parliamentary Draftsman

    Monday 29/09/2008 12.29 Monday 29/09/2008 15.00

    Monday 29/09/2008 20.40 Monday 29/09/2008 22.38

    E-mail from PwC to Department, NTMA and Central Bank re liquidity positions Draft contingency legislative provisions for Credit Institutions (Protection ) Bill

    The Central Bank provided a number of daily liquidity figures for the Irish institutions during September 2008. In addition, during September 2008 the Financial Regulator circulated 5 times per day deposit flow reports in relation to a particular institution. These were circulated in the Department but the individual e-mails have not been listed. They have not been released as they contain confidential institution-specific information from the Financial Regulator and the Central Bank.


    Multiple earlier drafts of documents have generally not been listed.
    Last edited by C. Flower; 04-08-2013 at 10:29 AM.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  3. #18
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    Default Re: Anglo Irish and Banking Crisis Timeline - the Day and Night of the Guarantee

    The day and night of the guarantee:

    The department says it cannot release records of these meetings under the Freedom of Information Act, which protects the confidentiality of records prepared for use at a government meeting. We are furthermore told that there are no notes of the meeting.

    Main Sources:

    Timed entries are from Namawinelake’s timeline of the Bank Guarantee.

    http://namawinelake.wordpress.com/20...-probably-not/

    Simon Carswell:

    http://www.billtormey.ie/2010/09/25/...ntee-happened/

    The Independent

    http://www.independent.ie/opinion/an...s-2133558.html

    Mark Hennessey in the Irish Times - http://memex.naughtons.org/archives/2008/10/05/5574

    Bank Inquiry news reports - http://www.independent.ie/business/i...-31184511.html

    and Department of Finance and Dail records.

    29th September , 2008: Monday

    Early Monday – meeting between Department of Finance, Financial Regulator, Central Bank and CEOs of AIB, Eugene Sheehy, BoI, Brian Goggin, EBS, Fergus Murphy and others. There were claims that banks were near “tipping points” (understood to be a reference to liquidity) and that there was speculation that one unnamed bank was at severe risk of going under. Nationalisation was discussed but dismissed.

    Morning: Announcement of nationalization of Bradford and Bingley Building Society’s mortgages and loans and plans to sell off its deposit book to Santander. Announcement of nationalization of Fortis bank by Belgian and Luxembourgian governments and the German state/banking sector funding of Germany’s Hypo Real Estate.

    At some stage, an email was sent by the Regulator to the British Government advising the in the event of Anglo failing overnight, CB or Government money would support it - AIB and BoI in similar position.
    (Independent 17 Nov 2013)
    1pm, Anglo CEO and Chairman meet with Bank of Ireland CEO, Brian Goggin in 6th floor office of BoI HQ and ask BoI to take over Anglo. The response was “no”

    After 1pm, Anglo CEO and Chairman contact AIB CEO Eugene Sheehy and ask same question and get same response

    Mid-afternoon, Minister Lenihan leaves Upper Merrion Street to attend daughter’s birthday party in Castleknock,Dublin

    5.00 pm ISEQ closes down 13%, Bank of Ireland shares down 15%, AIB down 16%, ILP down 34% and Anglo down 45%.

    5.00 p.m. Lenihan meets Begg and O'Connor at 5 p.m. for a pre-budget discussion. They say he was calm and only touched briefly on the crisis. Begg was a member of the Board of the Central Bank throughout the boom.

    http://www.independent.ie/business/i...-29436037.html

    6.00 p.m. approx. AIB and BoI CEOs phone Brian Cowen’s office to state that the banks couldn’t sustain themselves for another day and needed a plan overnight. "Following a disastrous pounding for Irish bank shares on the stock markets, the four had hurriedly sought a meeting with Cowen and Minister for Finance Brian Lenihan."(Hennessey, Irish Times)

    “The Government, spurred on by the fury of ECB boss Jean Claude Trichet at President Bush’s decision to let Lehman’s fail, was determined that no Irish bank would fail. Soon after the Dublin market closed, Cowen, Lenihan and top officials gathered for a crisis meeting in Cowen’s office to discuss the day’s events. Central Bank governor Hurley and Financial Regulator Pat Neary were asked to join them, and later the attorney general, Paul Gallagher, sat in. Senior finance officials, including Kevin Cardiff and William Beausang, came and went during a rolling series of meetings that went on through the night. The Taoiseach’s top team of special advisers, Peter “The Prof” Clinch, Joe Lennon, the Attorney General and government press secretary Eoghan O Neachtain, also had to cancel their evening plans and were called in." (Namawinelake)
    [None of these people had banking expertise. Clinch was an environmental planner and Hurley, Governor of the Bank of ireland, a civil service generalist. No civil servant in the Department of Finance had more than a part Economics degree through a B.A. in Economics and Arts - CF]

    6.37pm, Kevin Cardiff, a senior official at the Department of Finance,e-mails Merrill Lynch executive Henrietta Baldock, asking for an advisory document setting out “the pros and cons of guarantee a sap [sic]” as he isin a meeting with the Taoiseach. She e-mails the document to him six minutes later (Simon Carswell).

    6.43 p m, Second Secretary at the DoF, Kevin Cardiff receives report from Merrill Lynch.

    8 p m – An Taoiseach meets with Minister Lenihan and shortly after they are joined by Attorney General, Paul Gallagher, Governor of the Central Bank, John Hurley, Director General of the Central Bank,Tony Grimes, the Financial Regulator Patrick Neary, and core finance people from Brian Lenihan’s team, An Taoiseach’s top advisor, Joe Lennon, economics advisor, Peter Clinch (N.B. Clinch in fact was head of the Planning Department in UCD, and his expertise was in Environmental Assessment- C.F. http://www.ucd.ie/gpep/staff/profjpeterclinch/ ) and Government press spokesman Eoin O Neachtain. There are suggestions of contact with or input from economist David McWilliams, businessmen JP McManus and Dermot Desmond and former Minister for Finance and EU Commissioner, Charlie McCreevy. None known to be in the room had banking experience or qualifications.

    Carswell's account of the meeting - http://www.politicalworld.org/showth...718#post343718

    9 p.m. Dow Jones closes down 7% (738 points – the biggest one day drop) following the rejection of the €700bn Troubled Asset Relief Program in the US House of Representatives

    9.30 p.m. Eugene Sheehy and Dermot Gleeson, chief executive and chairman of Allied Irish Bank (AIB) respectively, and their two counterparts from Bank of Ireland, Brian Goggin and Richard Burrows arrived at Government Buildings.(Hennessey, I.T.) They were asked to wait in the Sycamore Room while Lenihan, Cowen and officials met nearby.
    "Two hours elapsed before the bankers, who had been left on their own, were called in before Cowen and Lenihan, who asked some questions, but mostly listened."

    “The Taoiseach was chairing the meeting, he was in charge,” Mr Goggin, who was chief executive at Bank of Ireland from 2004 to 2009. "It was a fairly fraught occasion, the entire day and night, it was the worst day in my life, it was incredibly stressful. "The Taoiseach was at the top of the table but most of the interaction was with the Minister for Finance Brian Lenihan, the discussions, asking questions, etc," he added. He said when asked what should be covered in the guarantee from Bank of Ireland's perspective, he said that senior creditors, junior dated creditors should be covered but not undated juniors. Mr Goggin added that he and AIB executives had been asked on the night to get clearance to put forward €5bn each to boost Anglo. (Banks Inquiry, Independent, April 30th)

    That late night meeting was also attended by representatives of the Central Bank including John Hurley, the-then attorney general Paul Gallagher, the then Taoiseach and the then Minister for Finance, he said. In the lead up to the night, Mr Goggin he had heard there had been lobbying by bankers to have a guarantee in place for all institutions. The nationalisation of Anglo and Irish Nationwide banks was “not a realistic prospect” on the night of the Bank Guarantee, he added. Mr Goggin described how that night they had gone to Government buildings to make sure Mr Cowen and Mr Lenihan were aware of the gravity of the situation that Anglo was about to fail.
    When they got there, he said, it was clear the Government was already aware of the problems. While nationalisation of the two seemed like the only possible option “to be quite blunt you don’t nationalise a significant bank in the middle of the week, you do it at the weekend.”


    11.30 p.m. AIB/BoI chairmen and CEOs (four individuals) meet with Brian Cowen and Brian Lenihan in Government Buildings on Upper Merrion Street. The delegation did not make “comment, reference or disclosure of the Anglo Irish approach earlier that day”. The delegation “urged Lenihan to nationalise Anglo and Michael Fingelton’s Irish Nationwide immediately” Brian Cowen is reported to have said “We’re not ******* nationalising Anglo” A plan was agreed that AIB and BoI would put up €10bn to keep it going until the following weekend, when it would more than likely be than likely be taken into state control and they would get their money back. A blanket guarantee of all deposits and debt totalling €440bn would be introduced. Both AIB and BOI were asked by Gov. for 5 billion each to loan to Anglo. (Namawinelake)

    A Report in the Indo, September 2013, based on anonymous sources says that Lenihan froze on the night, and that Cowen made the decision to Guarantee after phoning Alan Gray of Indecon (connected with Anglo Irish) and with other unnamed persons, just before midnight.

    http://www.independent.ie/irish-news...-29618377.html
    “On the night of 29 September 2008 myself and several other relevant colleagues were in our group headquarters awaiting information and feedback from the meetings which were taking place in Government buildings at which the Bank of Ireland Group CEO and governor (Chairman of the Bank) were representing Bank of Ireland.”

    Mr Boucher said the bank was asked for liquidity support for Anglo which it agreed to do. He said after midnight a call came through saying the Government had agreed to introduce a bank guarantee. He said: “I recall that the group CEO contacted us later by phone conference call to advise that the government had decided to provide a guarantee for all deposits and liabilities.

    “I recall that there was some discussion on whether the guarantee would cover subsidiaries and what the definition of liabilities was. I cannot fully recall whether it was during that call or in a further later call from the group CEO which advised that certain subordinated liabilities were also to be covered by the Guarantee. “I recall that there was some surprise at this and the feeling was that this might not necessarily suit Bank of Ireland as there was a view that Bank of Ireland needed to strengthen its capital.

    Mr Boucher said there would have been serious consequences if Anglo Irish Bank was allowed to fail.
    He said a four-bank guarantee would have contained that.
    http://www.irishtimes.com/news/polit...help-1.2201739


    2 a.m., according to British Chancellor of the Exchequer, Alastair Darling, it was 2 a.m. that the decision to guarantee the banks was taken.

    2.30 a.m. Financial Regulator, Patrick Neary rings EBS Chairman, Mark Moran who immediately rings EBS CEO, Fergus Murphy to inform him of new arrangements

    after 1 a.m.” (2.45 a.m.) The Cabinet was presented with a fait accompli, being told the matter could not wait until the morning and that its consent was required immediately. The virtual Cabinet meeting (other than the Taoiseach and Minister Lenihan, the others were Martin, Hanafin, Gormley, Ryan, Smith and others were involved via telephone) (sic) (Namawinelake)

    Minister for Defence, Willie O’Dea said (This Week in Politics, 15th May, 2011) “Well my role was simply to get a phone call at around midnight on the Monday night [from a senior civil servant], there was a cabinet meeting the following morning, and I was told something in a very short space of time roughly what the magnitude of this crisis was and this was the decision. I was informed as opposed to being consulted”

    "While a number of senior Ministers had already been put on notice, the Cabinet secretariat contacted the remainder, telling them to be ready for the “incorporeal” meeting between 1am and 2am. Even then, most Ministers were not told exactly of the decision’s scope. Willie O’Dea was woken shortly after 1am by his ringing mobile, but it had gone to voicemail by the time he got to it. The landline by his bed rang seconds later. Green Party leader John Gormley had more knowledge than most of an imminent banking crisis but, up until then, the secretariat had failed to make contact with him because his mobile had run out of power. In the end, Irishtown Garda station was called, and they sent a garda to his Ringsend home to wake him and ask him to ring the Taoiseach’s office." (Hennessey, Irish Times)

    3. a.m. The bankers leave -The bankers leave Government Buildings at around 3 am, hours before the Government announces the guarantee covering bank liabilities, including, controversially, €11.4 billion of subordinated debt, the funding provided to banks by investors for a higher risk premium. (Carswell)

    However, by the time they had gotten clearance to provide the funding, at 2am, they were told the decision had already been taken to guarantee all of the banks. Mr Goggin’s recall of that night is in direct contrast to that of AIB. He said there was “no ambiguity” by the end of the discussions that the government was putting in place a blanket guarantee for all six major banks. AIB representatives have already told the inquiry they only found out the following morning in media reports that Anglo and Irish Nationwide banks were to be included. ...Mr Goggin said he believed “yes AIB was with us at that point” in the room when the blanket guarantee was confirmed. Mr Goggin (BoI) left meetings in Government buildings at 3.30am on the night of September 2008, but he had been told at that stage that a blanket guarantee, for all banks including Anglo Irish Bank and Irish Nationwide, had been decided upon. (Independent, April 30th 2015, Bank Inquiry Report)

    3 a.m. Financial Regulator, Patrick Neary phones chairman of Irish Nationwide Building Society, Professor Michael Walsh to inform him of the new arrangements.
    Last edited by C. Flower; 06-05-2015 at 03:26 PM.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  4. #19
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    Default Re: Anglo Irish and Banking Crisis Timeline - Voting Through the Guarantee

    Before Markets open The government announces a €400 billion guarantee of the liabilities of all six Irish banks. http://www.timesonline.co.uk/tol/new...ffset=0&page=1 - Department of Finance issues statement that it had decided to “safeguard all deposits (retail, commercial, institutional and interbank), covered bonds, senior debt and dated subordinated debt (lower tier II)” at the six banks and “the guarantee will cover all existing aforementioned facilities with these institutions and any new such facilities issued from midnight on 29 September 2008, and will expire at midnight on 28 September 2010.”

    http://www.independent.ie/business/irish/lenihan-didnt-call-german-authorities-to-inform-them-of-bank-scheme-26617928.html


    N.B. The announcement was that the Government intended to make a Guarantee - until the Dail voted days later, the Guarantee was not in place.(CF)

    Early Morning – Minister Lenihan has said “I did not make any external telephone calls on the night of 29 September and early morning of 30 September 2008 to seek advice in relation to the bank guarantee or other options for resolving the banking crisis. However, I did make telephone calls to the following people to advise them of the bank guarantee:
    (a) Irish Ambassador to France, (b) Ms. Christine Lagarde, Minister for Finance, France – Brian Lenihan called her on her mobile phone and claimed that he had no choice and the Ms Lagarde’s reaction was “Oh my God” because of perceived competition issues with other European countries [RTE This Week 12th June, 2011] (c) Irish Ambassador to UK (d) Mr. Alistair Darling, Chancellor of the Exchequer, UK[“a frank exchange”] (e) Monsieur Jean-Claude Trichet, President, European Central Bank”. Pointedly he did not contact the German Chancellor, Angela Merkel or Finance Minister, Peter Steinbruck.
    http://namawinelake.wordpress.com/2011/09/30/conspiracy-probably-not/


    Lenihan phoned La Garde in France, Darling in Britain and Trichet of the ECB but not Germany (answer to Dail question).

    6 a.m, Alastair Darling first heard about the guarantee on BBC radio’s Today programme with John Humphrys.

    6 a.m. Minister for Finance, Brian Lenihan telephones Jean Claude Juncker, chairman of the Eurogroup, FG leader Enda Kenny and Labour leader, Eamon Gilmore to inform them of events

    7.30am INBS Chairman, Professor Michael Walsh telephones CEO, Michael Fingleton to inform him of new arrangements

    September 30 2008 Letter of Comfort to Anglo Irish Bank. http://www.irishtimes.com/newspaper/...279263728.html


    Tuesday 30/09/2008 Government Statement re Decision to Safeguard Irish Banking System
    2 Tuesday30/09/2008 Speaking points for Taoiseach re Government decision to safeguard the Irish Banking System


    30 September 2008 Final payment - Irish Life Permanent (ILP) provided €3.45 billion in temporary loans to Anglo on the day of the guarantee. This money was a circular transaction originating at Anglo.

    30th September
    2008 ILP’s €7.45 billion deposits flattered Anglo’s books on September 30th, 2008, a key reporting date for the bank. Most of the money was withdrawn within days. Mr Casey said he was providing the statement as investigators have yet to contact him about the matter, despite the deposits being under investigation for 17 months. “I am anxious that the totality of the circumstances surrounding the execution and presentation of the September 2008 transaction, which occurred in the context of extensive systemic support and patronage enjoyed by Anglo Irish Bank, are thoroughly investigated as quickly as possible,” he said.
    Mr Casey said the transaction arose from a request by the chief executive of the regulator, Pat Neary, and Central Bank governor John Hurley who had asked ILP to participate in a “green jersey agenda”.
    Under this strategy, Irish banks were asked to help each other with “mutual in-market support at a time of unprecedented turmoil in the global financial markets in order to maintain financial stability”, he said. http://www.independent.ie/national-n...o-2212421.html http://www.irishtimes.com/news/ex-ba...funds-1.675122

    Anglo Tapes - John Bowe alleges that the Central Bank and Regulator "egged Anglo on" to engage in the circular loan with IL& P. The question of whether or not this was market abuse was raised by the new management of Anglo Irish in 2009 - http://www.independent.ie/business/i...-29402411.html

    (More on this on October 30th, below)

    Nellie Kroes, EU Competition Commissioner, said that the Bank Guarantee was illegal State aid and that she had been assured it would be changed...

    European Union Competition Commissioner Neelie Kroes said today that the Irish Government’s plan to provide unlimited guarantees on deposits in Irish banks contravenes EU law. Ms Kroes said there was a discriminatory element to unlimited guarantees on bank deposits and that she expected Ireland to modify its guarantee plans.
    She also said she had received assurances from her contacts in Dublin that the Government intended to modify the proposal before presenting it to Cabinet early this week
    .

    Morgan Kelly says there were alternatives to the Guarantee - non retail banks - Anglo Irish and INBS - could have been let go.


    The Dail proceeded to vote through first the Credit Institutions Bill, and then the Guarantee, over the next ten days.
    (N.B. More material to be added here)

    http://economic-incentives.blogspot....atives-to.html

    October 2008: PricewaterhouseCooper completes its report on the Irish banking system.

    http://www.rte.ie/news/2008/1017/109374-economy/

    Credit Institutions Bill
    http://www.oireachtas.ie/documents/b...08/b45a08d.pdf

    The Dail - The debate and votes. http://www.independent.ie/business/d...-26485414.html

    October 2008: PricewaterhouseCooper completes its report on the Irish banking system.

    8th October 2008 - ECB Opinion on the Bank Guarantee - not consulted, concern at liabilities taken on by public/state.

    http://www.ecb.int/ecb/legal/pdf/en_con_2008_44.pdf

    8th October 2008 - US Embassy wikileaks cable on the Banks Guarantee.

    Econoff spoke with Kevin Cardiff, Second Secretary General at the Department of Finance, who has been deeply involved in putting together the guarantee package. Cardiff echoed the regulator and pointed out that auditors contracted by his Department to look at the books of at least two of the institutions under pressure came away with "a favorable impression of the loan books." While he admitted that the amount of "speculative loans, or those that are not currently productive, is not insignificant," he stressed that all involved in putting together the package were confident that the government would not be forced to bail out the banks. ¶6. (C) Cardiff said that credit to the Irish banks "virtually dried up" on September 29 and that the government had to step in to salvage the Irish financial sector. The genesis of this was classic "herd mentality" based mostly on rumor and innuendo about Irish banks rather than any hard facts. However, fighting the herd became impossible, he added....
    http://www.cablegatesearch.net/cable...diff%20ireland


    October 14, 2008: Finance minister Brian Cowen calls an emergency budget[/quote]December 3, 2008: David Drumm describes Anglo as “performing strongly” and describes profits as “robust”.

    BC met Fintan Drury 4th of October ant the 16th of October.

    October 2008 Anglo Irish JCF 1 LLP – Trust established, offshore, Fitzpatrick and other names involved http://thestory.ie/2010/04/26/anglo-strangeness/ http://www.independent.ie/irish-news...-26652818.html

    Neary on television shocks and horrifies the Nation. How could the fate of the country have been left in his hands? The Emergency Training had not worked.



    24 October 2008: The Department of Finance become aware of the transfer of €7.5 billion and referred the matter to the FR ("Give or take a day or two" according to Kevin Cardiff's testimony at the PAC). On October 24th and 25th, 2008 ILP and Anglo discussed the €7 billion transaction with the Regulator’s head of banking supervision, Mary Burke.

    30 October 2008: IL&P (Casey) meets FR and CB (Neary and Hurley) to discuss Anglo supporting IL&P prior to IL&P's end of year.
    Last edited by C. Flower; 24-09-2013 at 02:13 PM.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  5. #20
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    Default Re: Anglo Irish and Banking Crisis Timeline - "Nationalisation"



    8th November
    , Enda Kenny demands in the Daíl that the banks should be recapitalized to provide liquidity to small business.

    http://www.rte.ie/news/2008/1118/110608-economy/

    On November 20, 2008 Sean FitzPatrick had lunch with Bertie Ahern at the Pavillion Leopardstown Race Course. The evening of the same day Sean FitzPatrick and David Drumm had an appointment with the then Finance Minister Brian Lenihan.[6] http://sneachta.org/index.php?title=Sean_FitzPatrick

    December 3, 2008: David Drumm describes Anglo as “performing strongly” and describes profits as “robust”.
    http://www.timesonline.co.uk/tol/new...ffset=0&page=1

    December 18, 2008: Sean FitzPatrick resigns after shareholders find out about his €87m hidden loans.
    http://www.timesonline.co.uk/tol/new...ffset=0&page=1

    December 19, 2008: David Drumm resigns.
    http://www.timesonline.co.uk/tol/new...ffset=0&page=1

    December 21, 2008: The government announces a €1.5 billion bail-out for Anglo.
    http://www.timesonline.co.uk/tol/new...ffset=0&page=1

    December 29, 2008: Anglo shares hit 12c.

    January 2009 - Merrill Lynch, after receiving a fee of over US $11 million, said that the bank was "financially sound", 11 days before nationalisation.[47]
    http://en.wikipedia.org/wiki/Anglo_Irish_Bank

    January 15, 2009 – The Irish Government nationalised Anglo Irish Bank at which point the Irish Stock Exchange and the London Stock Exchange delisted the bank. On 19 January the Board of Directors resigned to allow the Government to appoint a new board.
    http://en.wikipedia.org/wiki/Anglo_Irish_Bank

    January 30, 2009: The financial regulator Patrick Neary resigns.
    http://www.timesonline.co.uk/tol/new...ffset=0&page=1

    1-15 January 2009: Sometime in January prior to the Nationalisation of Anglo, the €7 billion in loans from IL&P to Anglo. transfer came to the attention of Brian Lenihan.
    http://www.timesonline.co.uk/tol/new...ffset=0&page=1

    January 16, 2009: Angry shareholders call for Anglo’s board to be sacked.

    16 January 2009 Anglo nationalised. Sean Fitzpatrick got a 15 milliion loan arrangement.
    http://www.politicalworld.org/showth...252#post343252

    January 19, 2009: Five Anglo non-executive directors resign.

    January 20, 2009: The Dail is recalled to push through the nationalisation of Anglo.

    February 2009 Department of Finance civil servants appear to change letter from Anglo Irish to the Government, to obscure the fact that Anglo Irish loaned to people to buy their Contract for Difference share purchases.
    http://www.irishtimes.com/news/polit...user-1.1472805

    29th June 2009 - The Office of the Regulator reissues the Requirements for the Regulation of Liquidity Risk, 2009, describing them as "new" with an amended section 4.2.
    They do not mention that the Requirements were first published in 2006 and came into force mid 2007. The Requirements provided for five year jail sentences and fines for those responsible for liquidity breaches.

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

    http://www.centralbank.ie/regulation...ity%20Risk.pdf
    Last edited by C. Flower; 04-08-2013 at 07:16 PM. Reason: quiquir
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  6. #21
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    Default Re: Anglo Irish and Banking Crisis Timeline - the Full Monty

    Post script:
    C. Flower
    30-09-2010, 12:36 PM
    Bond Sales have been suspended until next year, as Irish Bonds are unsaleable at any price we could afford. October and November sales have been postponed.


    UNLIMITED GUARANTEE

    Ireland issued an unlimited guarantee for its banks in 2008 after a housing bubble burst and the global financial crisis threatened to bring down its financial sector.

    The dawn announcement was meant to calm markets which drove the risk premium on Irish government bonds to a euro lifetime record of 475 basis points over German bonds on Tuesday.

    "I think it's bold because what they are doing is really giving us the bad news upfront. I think the market needs to know and here it is," said Padraig Garvey, rate strategist at ING.

    "It's a pretty astonishing deficit number, it's higher than the national debt a few years ago which is an incredible situation to be in," he said.

    Lenihan said the Ireland, which is fully funded until June 2011, would cancel planned bond auctions in October and November and only return to the capital markets in 2011.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  7. #22
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    Default Re: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

    I've just produced this new timeline of the Bank Guarantee. The biggest surprise to me in putting it together is the extent to which the ECB, the NTMA, and the Regulator had been stuffing money into two very sick banks from 2007 on, with no public knowledge about it.
    Last edited by C. Flower; 24-07-2013 at 07:13 PM.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  8. #23
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    Default Re: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

    From 2010

    Enda Kenny (Leader of the Opposition; Opposition Spokesperson on Northern Ireland; Mayo, Fine Gael)

    The other fundamental matter is this. On the debate in the House on the bank guarantee, Deputy Noonan asked the Minister for Finance whether this was a matter of liquidity or solvency and he was told it was a matter of liquidity. The Government did not tell the truth to the people. Was the Minister, Deputy Gormley, suffering from lack of sleep when he gave his recollection of what happened? Was the Minister for Finance right when he said that this was decided at a full meeting of the Cabinet, which took place on the Sunday, or was it decided by the incorporeal meeting on the Monday? I would like to know that before we proceed into what will be the last budget to be presented by this Government.
    Brian Cowen (Taoiseach; Laois-Offaly, Fianna Fail)

    As I have outlined to Deputy Kenny, there were no decisions taken whatever on Sunday. The incorporeal meeting that was held on the Monday night-Tuesday morning was the meeting that took the decision. It was not taken on the spur of the moment, as he knows. There was considerable discussion during that night-time and early morning as to what the best options were in the circumstances. I do not accept for a moment Deputy’s contention. There is no question of anyone telling untruths whatsoever or not telling the truth about solvency and liquidity.
    http://www.kildarestreet.com/debates...2-07.2.0#g17.0
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

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    Default Re: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

    Worth noting

    As late as September 17 (2008), a Department of Finance briefing note to Mr Lenihan said Irish banks were "well-capitalised, highly liquid, and have built up good financial buffers".
    http://www.independent.ie/business/i...-29381733.html

    Cardiff was being briefed by Tiernan O'Mahoney around this time

    Kevin Cardiff, the civil servant in charge of banking in September 2008 had a late-night briefing on how to solve the financial crisis from Tiernan O'Mahony, the former head of treasury at Anglo Irish Bank -- just days before the State introduced a blanket guarantee for Ireland's banks.

    Mr O'Mahony told Mr Cardiff, according to well-placed sources, that the State needed to consider some form of a guarantee to restore confidence to the market and halt the flow of billions in deposits out of Irish banks.
    http://www.independent.ie/business/i...-26815975.html
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

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    Default Re: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

    Thanks for this immeasurably useful timeline. The whole mess gets put into context and perspective and proves that the mess is by no means cleaned up.
    Educating a Renaissance...http://www.laroucheirishbrigade.com//

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    Default Re: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

    Great work Cactus.

    Here's Gavin Sheridan on Lenihan's diary

    http://www.gavinsblog.com/2009/09/30...or-mr-lenihan/

    However, the diary itself raises a number of questions that I will list here.

    1) Why was a meeting with Sean FitzPatrick on September 18 not listed in the diary?

    2) Were instructions given by the Minister to PwC, following the meeting with Mr FitzPatrick, to begin its inquiry into Anglo?

    2) What was the purpose of the meeting with Pat McLoughlin of IPSO on September 25? Was this related to lobbying in relation to cheque usage and ATM charges?

    3) On the night of the bank guarantee, September 25, who was present at the Department of the Taoiseach with Mr Lenihan and Mr Cowen? No names are listed in the diary, but names were reported in the media.

    4) What was the purpose of the meeting with Independent News & Media chairman Brian Hillery on October 31, 2008?

    5) What was the purpose of the meeting with Ivan Yates on November 5, 2008?

    6) What was the purpose of the meeting with Stephen Schwarzman of Blackstone on November 12, 2008, and with James McGuill of the Law Society the same day?

    7) What was the purpose of the meeting with Michael Ryan and Paul Ryan of Merrill Lynch on November 13, 2008?

    8 ) What was the purpose of the meeting with Andre Orcell of Merrill Lynch and then Lochlainn Quinn on November 24, 2008?

    9) What was the purpose of the meeting with Sean FitzPatrick and Donal Drumm of Anglo, on December 16, and why does the diary entry merely list the meeting as “Anglo Irish” instead of their names?

    10) Why is there no mention of any meetings with Patrick Neary, the then Financial Regulator, right up until his resignation on the night of Friday, January 9?

    11) What was the purpose of the meeting with property developer Stephen Vernon of Green Property on January 30, and with Axel Wieandt of Hypo Real Estate on the same day?

    12) What was the purpose of the meeting with Rick Lazio of JP Morgan Chase (who ran against Hilary Clinton in New York in 2000) on April 24?

  12. #27
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    Default Re: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

    Quote Originally Posted by Dr. FIVE View Post
    What was the purpose of the meeting with Independent News & Media chairman Brian Hillery on October 31, 2008?
    Hillery was also Chairman of Unicredit Ireland. Cowen put him on the Board of the Central Bank

    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. The appointments are to replace Mr. Roy Donovan and Dr. Martin O’ Donoghue who will be stepping down from their positions.

    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. Dr. Hillery was formerly an Executive Director of the European Bank for Reconstruction and Development, London. He is Professor Emeritus of the Graduate School of Business, UCD.
    http://www.finance.gov.ie/viewdoc.asp?DocID=5278

    What was the purpose of the meeting with property developer Stephen Vernon of Green Property on January 30, and with Axel Wieandt of Hypo Real Estate on the same day?
    It is a matter of sheer luck that in 2007, before the credit crunch, a Dublin-based bank called Depfa was bought by the German financial group Hypo Real Estate. Very few people in Ireland had ever heard of Depfa. Although it was as German as sauerkraut, it was actually the largest bank in Ireland - bigger than AIB. It was, in legal and regulatory terms, an entirely Irish company. When the financial crisis unfolded, Depfa brought down Hypo. The cost to the German government so far is €102 billion.
    http://whistleblowerirl.blogspot.ie/...-and-hypo.html
    Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other. ~Oscar Ameringer

  13. #28
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    Default Re: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

    Quote Originally Posted by DCon View Post
    From 2010

    y (Leader of the Opposition; Opposition Spokesperson on Northern Ireland; Mayo, Fine Gael)

    The other fundamental matter is this. On the debate in the House on the bank guarantee, Deputy Noonan asked the Minister for Finance whether this was a matter of liquidity or solvency and he was told it was a matter of liquidity. The Government did not tell the truth to the people. Was the Minister, Deputy Gormley, suffering from lack of sleep when he gave his recollection of what happened? Was the Minister for Finance right when he said that this was decided at a full meeting of the Cabinet, which took place on the Sunday, or was it decided by the incorporeal meeting on the Monday? I would like to know that before we proceed into what will be the last budget to be presented by this Government.
    http://www.kildarestreet.com/debates...2-07.2.0#g17.0

    Brian Cowan was lying to the Daíl. The decision was not taken by the "incorporeal meeting" of the Cabinet. Individual Cabinet members were informed of the decision, after it was taken by a group of people that has never even been identified officially, in an unminuted meeting.

    TuesdayAt 12 midnight, Minister for Defence, Willie O’Dea said (This Week in Politics, 15th May, 2011)
    “Well my role was simply to get a phone call at around midnight on the Monday night [from a senior civil servant], there was a cabinet meeting the following morning, and I was told something in a very short space of time roughly what the magnitude of this crisis was and this was the decision. I was informed as opposed to being consulted”
    Mary Hanafin had the same experience.

    http://www.dailyedge.ie/cowens-minis...72915-Nov2011/

    Imo, the ad hoc group of people who decided on the Guarantee (even though it included the Taoiseach and Minister for Finance) did not have the authority to do so.
    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

  14. #29
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    Default Re: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

    Constitutionality of the Guarantee ? Zero, in my opinion.

    Money Bills
    Article 21
    1. 1° Money Bills shall be initiated in Dáil Éireann only.
    2° Every Money Bill passed by Dáil Éireann shall be sent to Seanad Éireann for its recommendations.
    2. 1° Every Money Bill sent to Seanad Éireann for its recommendations shall, at the expiration of a period not longer than twenty-one days after it shall have been sent to Seanad Éireann, be returned to Dáil Éireann, which may accept or reject all or any of the recommendations of Seanad Éireann.
    2° If such Money Bill is not returned by Seanad Éireann to Dáil Éireann within such twenty-one days or is returned within such twenty-one days with recommendations which Dáil Éireann does not accept, it shall be deemed to have been passed by both Houses at the expiration of the said twenty-one days.


    Article 22
    1. 1° A Money Bill means a Bill which contains only provisions dealing with all or any of the following matters, namely, the imposition, repeal, remission, alteration or regulation of taxation; the imposition for the payment of debt or other financial purposes of charges on public moneys or the variation or repeal of any such charges; supply; the appropriation, receipt, custody, issue or audit of accounts of public money; the raising or guarantee of any loan or the repayment thereof; matters subordinate and incidental to these matters or any of them.


    THE GOVERNMENT
    Article 28


    1. The Government shall consist of not less than seven and not more than fifteen members who shall be appointed by the President in accordance with the provisions of this Constitution.


    2. The executive power of the State shall, subject to the provisions of this Constitution, be exercised by or on the authority of the Government.
    ...

    4. 1° The Government shall be responsible to Dáil Éireann.


    2° The Government shall meet and act as a collective authority, and shall be collectively responsible for the Departments of State administered by the members of the Government.

    “ We cannot withdraw our cards from the game. Were we as silent and mute as stones, our very passivity would be an act. ”
    — Jean-Paul Sartre

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    Default Re: The Bank Guarantee and Anglo Irish Timeline - the Full Monty

    Stephen Vernon there is one of the "smartest property investors" calling the bottom in the Sindo today as Dcon posted. He got a good deal from Anglo if I recall.

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