Page 3 of 14 FirstFirst 1234513 ... LastLast
Results 31 to 45 of 200

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

  1. #31
    Join Date
    Nov 2010
    Location
    in the national interest
    Posts
    17,680

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

    One billion worth in fact http://www.ft.com/intl/cms/s/0/6f4d1...#axzz2XiYf4VT7


    Anglo Irish Bank is in talks to sell a €1bn (£925m) real estate portfolio, which includes UK properties such as Liverpool’s Metquarter shopping centre, to Stephen Vernon, the British property entrepreneur.

    The nationalised Irish lender has agreed the terms of the sale to Green Property, the Dublin-based property company run by Mr Vernon. Should the deal be completed, the control of about €1bn of properties held in the UK, Ireland and Germany will be transferred to Green.

    All the properties are held in Anglo Irish’s Select Geared Property Fund, which was originally destined for syndication to private clients of the bank.


    Only some of the equity was distributed and the collapse of the property market meant that the properties remained on the Irish bank’s balance sheet.

    Green will take over the asset management of the properties, and look to maximise the value of the assets with a view to a medium-term exit for the bank. There is also a hotel in Cologne, a shopping centre near Düsseldorf and properties in Dublin.

    One source close to the negotiations said: “Banks do not want to own property. This is providing a work-out strategy to share the upside and maximise value.”

    Green has created a vehicle to hold the properties. It would own a majority stake in the non-syndicated equity. It is not known how much equity it will commit to the transaction, but it is expected to assume the debt provided by Anglo. Other minority investors in the fund will not be affected.

    The properties, including three office buildings in London, will have fallen significantly in value since their acquisition. It is not known how much Anglo will have to write down the value of the properties if they are transferred to Green.

    The properties are not in default of their loans so would not have to be taken by Ireland’s National Asset Management Agency, which is to buy distressed real-estate debt at a discount from the Irish lenders.


    This is the second time that Green has acquired a large portfolio from an Irish bank this year.

  2. #32
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    The meeting that decided on the Guarantee was essentially a meeting between an ad hoc group of politicians and civil servants (the Group did not even have a name) and the AIB and BoI, called at the bank's request, and from which the AIB and BOI withdrew to a different room for a part of the meeting. The Government, as defined in the Constitution, had no part in the decision.

    http://www.politicalworld.org/showth...712#post343712

    Carswell -

    At 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 is
    in a meeting with the Taoiseach. She e-mails the document to him six
    minutes later. Discussions continue as Gleeson and Eugene Sheehy from AIB
    and Burrows and Goggin from Bank of Ireland arrive at Government Buildings
    around 9.30pm. The bankers are shown to the famous Sycamore Room and wait
    while the Taoiseach, Minister for Finance and officials consider their
    options. The bankers are soon called in. All the key senior figures and
    officials are in attendance, with the exception of Pat Neary, the regulator.

    Gleeson speaks first, outlining the damaging and contaminating effect Anglo
    is having on the wider Irish banking system. Burrows provides more
    scene-setting detail, and Sheehy and Goggin speak up on more technical
    banking matters concerning liquidity. Both banks ask the Government to
    nationalise Anglo and possibly the next weakest, Irish Nationwide, and to
    guarantee the other banks.

    The bankers leave, with AIB and Bank of Ireland returning to separate rooms
    in the building. Cowen and Lenihan, their officials, and Attorney General
    Paul Gallagher SC remain to decide on the action to be taken. They accept
    doing nothing is not an option. Nationalising one bank, notably Anglo, is
    ruled out, despite legislation to do so being in place. Officials believe
    the banking collapses across Europe that day show a solution involving one
    bank would not be enough.

    A blanket guarantee of the banks’ liabilities is chosen as the best, most
    effective option, despite its potential effect. Taking Anglo into State
    hands might still be required but its nationalisation mid-week when the
    markets are still open, it is thought, would be too disorderly. The bankers
    are later told a Government guarantee is available but they must request it
    rather than be offered it in what is interpreted to be a technical matter
    of procedure. They are asked whether they can provide short-term liquidity
    to Anglo. They return after talking to their respective treasury teams,
    saying they can each provide €5 billion for a matter of days, but only if
    the repayment is guaranteed by the Government. Up to an additional €3
    billion would be made available by the Central Bank to Anglo in an asset
    swap.

    * The bankers leave Government Buildings at around 3am, 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.
    Last edited by C. Flower; 30-06-2013 at 04:37 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

  3. #33
    Join Date
    Nov 2010
    Location
    in the national interest
    Posts
    17,680

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

    Quote Originally Posted by C. Flower View Post
    The Government, as defined in the Constitution, had no part in the decision.
    In Baron's absence I feel obliged to remind you that the decision ultimately rests with the Minister

  4. #34
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    4) What was the purpose of the meeting with Independent News & Media chairman Brian Hillery on October 31, 2008?
    Hillery was also Chairman of the Board of Unicredit Ireland, and Unicredit, via Pioneer Investments, one of the Anglo Irish bondholders named by Guido Fawkes, at a later date.
    Last edited by C. Flower; 30-06-2013 at 04:49 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. #35
    Join Date
    Nov 2010
    Location
    in the national interest
    Posts
    17,680

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

    Indeed, current chairman of Providence Resources & a former FF TD to boot.

  6. #36
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    Quote Originally Posted by Dr. FIVE View Post
    In Baron's absence I feel obliged to remind you that the decision ultimately rests with the Minister
    In which article of the Constitution is the Minister given powers to give away 500 billion, without first consulting the Dail ?

    EDIT: The decision was a confidence trick (or you called call it a coup, by some bankers and politicians), without legal standing until passed by the Daíl, days later. The "Letter of Comfort" issued by Brian Lenihan was part of that hokum.


    September 30 Letter of Comfort to Anglo Irish Bank. http://www.irishtimes.com/newspaper/...279263728.html
    Last edited by C. Flower; 30-06-2013 at 06:21 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

  7. #37
    Join Date
    Nov 2010
    Location
    in the national interest
    Posts
    17,680

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

    2007 profile of Drumm & Anglo. Some good background if you can stomach it

    http://www.independent.ie/business/i...-26288733.html

    The Anglo business model was beguilingly simple. Instead of building up a large network of expensive retail branches, it would instead concentrate on lending to small businesses and professionals, such as doctors and solicitors.

    This was traditionally a high-risk sector which the established clearing banks steered clear of.

    This created an opening in the market which Anglo was able to exploit. When making lending decisions, its key criteria have always been that the borrower possesses the cash-flow necessary to repay the loan and the collateral, usually property, to protect the bank's interest if things go wrong.

    The key to making this model work was hiring top-quality people who could accurately assess which potential borrowers were good for the money and winnowing out those who weren't at the application stage.

    Anglo has never been afraid to pay top dollar to get those people, with its 1,500 staff being paid an average of almost €140,000 each last year.

  8. #38
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    The Guarantee meeting was held at the request of AIB and BoI - it was one of those meetings held all the time in Ireland, unminuted, between Ministers, County Managers etc. with supplicant businessmen. They get together, the supplicant says "my project is being held up by the planners" "the new regulation is going to put me out of business" "I want the concession for hotdogs at the Gathering" "I want the licence to dig gold out of Mount Leinster" etc. etc. Ministers, Managers, etc. say "what can we do" and get the plan changed, get the licence granted etc. etc. It is not a question of money changing hands, but of future directorships, golf club membership (Phil Hogan take note), being one of the boys, generally.

    AIB and the BoI came along and asked for a guarantee. "Would you just pop out and have a coffee while we discuss it" and ten (or however many) minutes later, they were asked back in, and told they had one. Then Neary popped out and phoned the other banks covered. Then, individually, Ministers were rung up in the middle of the night and told that a Guarantee had had to be put in place and they were obliged to go along with it. Over three hours later, the world and the voters were told that "Ireland had Guaranteed the banks." There were no bank experts there to give advice, but the Attorney General, who should have known better, was there to OK the manoevre legally. Lenihan issued a meaningless "Letter of Comfort" indicating that the Government would cover banks losses. It was pure sleight of hand, smoke and mirrors, whatever you want to call it. Then the Dail was told that it was in place: Lenihan lied and said it had been agreed by Cabinet: "The Government"
    http://www.oireachtas.ie/documents/c.../document1.pdf

    We would have been in order to occupy the Dail and demand he rescind.

    The Dail could have and should have voted against it and it would not have stood - but they were lied to and told that it was already in place, taking all real value out of the debate.

    The whole tendency of Fianna Fail to take action out of the Dail Chamber during its term in office was commented on at the time as was the rule by tiny cabal. Just how dangerous this was emerged when the Bank Guarantee manoevre was pushed through.

    It was effectively a coup.

    Then, weeks went by. Lenihan did not seem to realise that a "bank guarantee" meant that MONEY HAD TO BE PUT INTO BANKRUPT BANKS. That was why Drumm wanted to hit him.

    Hat tip to DCon -

    Re: The Anglo Irish Tapes

    Drumm re Lenihan


    "'Do you understand? Can I teach you just one piece?' Not in that language, obviously, but can I teach you one piece of banking here? 'When you've guaranteed somebody's entire liabilities, it is smart to write a very small cheque to stop them being called! Which bit of that don't you get?' I don't think he gets it."


    http://www.independent.ie/business/i...-29383266.html



    Last edited by C. Flower; 30-06-2013 at 08:10 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

  9. #39
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    Well well... Anglo Irish / the IBRC still overcharging ?

    http://www.independent.ie/business/i...-29383229.html
    “ 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

  10. #40
    Join Date
    Mar 2010
    Posts
    22,431

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

    Quote Originally Posted by C. Flower View Post
    Well well... Anglo Irish / the IBRC still overcharging ?

    http://www.independent.ie/business/i...-29383229.html
    That's TIBOR.
    #23

  11. #41
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    More here to remind us that Anglo Irish was being bailed out with public funds, on many occasions, secretly and it appears illegally, from 2007 onwards.

    http://www.politicalworld.org/archiv...hp/t-2840.html

    http://www.politicalworld.org/archive/index.php/t-1547.html


    http://www.politicalworld.org/showth...ntee-Documents

    http://humanrights.ie/announcements/...of-government/

    The Irish Times/Carswell's version of the Guarantee events: Kevin Cardiff said to the PAC that it was accurate. However, some of the Ministers give earlier contact times than is suggested here.

    http://www.billtormey.ie/2010/09/25/simon-carswell-on-how-the-bank-guarantee-happened/
    Last edited by C. Flower; 02-07-2013 at 11:40 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

  12. #42
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    At last, in a second Irish Central interview, a list of the people who were at the BG night meeting, from Drumm - at least I assume it is. Missing from it is Lenihan, because he is dead and cannot answer questions. Pat Neary, according the the Irish Times, was not there at the meeting, but was there in the early hours and was the person who rang the other bank CEOs who were covered by the Guarantee, but who were not at the meeting.

    What was all the mystery about who was there, and why has it never been confirmed? The most striking thing about the composition of the meeting is the lack of expertise on the Government side, and the 50-50 balance of the meeting, which was called at the request of the AIB and BOI, who told Lenihan they would be bust by the morning if nothing was done. It appears that an "in principle" decision had been taken in favour of some form of guarantee at the Cabinet Meeting the day before (Sunday).

    Mr Drumm named the eight people who should explain what role -- if any -- they played in the guarantee as:
    * Brian Cowen, then Taoiseach
    * Kevin Cardiff, then head of taxation and finance at the Department of Finance
    * Patrick Neary, then Financial Regulatorhttp://www.finance.gov.ie/viewdoc.asp?docid=6161
    * John Hurley, former Central Bank Governor (generalist civil servant)
    * Richard Burrows, former Bank of Ireland chairman - worked for Irish Distillers for years
    http://www.guardian.co.uk/business/2...nd-former-boss

    * Brian Goggin, former BoI chief executive
    http://investing.businessweek.com/re...20OF%20IRELAND

    * Eugene Sheehy, former AIB chief executive
    http://en.wikipedia.org/wiki/Eugene_Sheehy

    * Dermot Gleeson, former AIB chairman
    http://en.wikipedia.org/wiki/Dermot_Gleeson
    “ 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

  13. #43
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    More here from Drumm that fills in a few small gaps - will add them to the timeline later.

    http://cedarlounge.wordpress.com/201...nglo/#comments

    More on the politicians getting off the hook -

    http://www.politicalworld.org/showth...834#post344834
    “ 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. #44
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    Hat tip to Paddy Joe - just noting that Quinn alleges that the D of F knew of illegal 2.4 billion euro Quinn to buy Anglo shares.

    http://www.politicalworld.org/showth...e-between-them
    “ 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

  15. #45
    Join Date
    Feb 2010
    Location
    Rockall
    Posts
    78,602

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

    8th Feb 2008 - Power Point on Stability Resolution Issues

    Pages are unnumbered – some extracts – from February 8th 2008 – the DoF powerpoint presentation on conclusions from the stability scoping paper and discussion of it.

    In bold and underlining are in the original –
    As a matter of public policy to protect the interests of taxpayers any requirement to provide open-ended / legally binding State Guarantees which would expose the Exchequer to the risk of very significant costs are not regarded as part of the toolkit for successful crisis management and resolutions…

    A financial institution could postpone disclosing to the market information that prompts negotiation for ELA, provided that
    The failure to disclose would not be likely to mislead the public (key issue identified by the OAG) and the financial institution was able to ensure the confidentiality f the information.

    State Guarantees

    The Minister does not have statutory authority to issue a guarantee.

    This would not prevent the Minister from announcing his intention to give a Guarantee or his intention to protect deposits and then putting in place the necessary legislative measures.

    …Clarity essential regarding different types of State “guarantees” that may arise under financial stability event including conditional deposit guarantee as in the case of Northern Rock(may need to distinguish between retail and wholesale deposits) – guarantee with respect to CBFSAI liquidity supports to distressed financial institution (eg. In case of low quality of collateral)

    State guarantee to underwrite a Bank’s solvency position –could only be justified in circumstances that otherwise the entire financial situation is at risk of collapse.

    Priorities include Review and any necessary reform of DGS a priority given the requirement to ensure that examinership is a credit resolution option


    http://www.oireachtas.ie/documents/c...document35.pdf

    Recommended next step a crisis management manual.

    Is this it ? Between one document and the next an unlimited guarantee has gone from unacceptable to accepted
    http://www.oireachtas.ie/viewdoc.asp...document36.pdf

    Why ?

    The emphasis particularly in the second power point document is on maintaining public confidence and on how it would be legitimate to conceal from the public that institutions were insolvent.

    It seems that fear of a run on the banks was a prime concern.

    It seems highly likely that ELA was used during 2008 and this was concealed from the public, in the knowledge that the banks receiving it were insolvent.

    The unlimited guarantee seems to have been policy by April 2008, under Ahern and Cowen.


    Last edited by C. Flower; 08-07-2013 at 09:31 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

Page 3 of 14 FirstFirst 1234513 ... LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Share us
Follow Us