Depfa still an 'Irish bank'??? German Banks Inside the IFSC and Out

[TotalMayhem]

According to an article in Der Spiegel, Irish banks were cut off from the capital markets in October and received aid to the tune of 150 billion Euro. 20 billion Euro from the Central Bank of Ireland, topped up with 130 billion Euro from the ECB.

Short term loans from the ECB to Irish banks*:



* Milliarden = billions

Depfa Bank was purchased by German mortgage giant Hypo Real Estate in October 2007. Through a series of bailouts, the German government ended up with 100% ownership of Depfa's parent company, Hypo Real Estate.

How come Depfa Bank still appears on the 'Irish balance sheet'?

This so-called bank, hardly a household name in Ireland, certainly dwarfs the terrifying figures we have gotten used to hear in connection with Anglo. Depfa is said to be responsible for at least two thirds of the HRE losses (well over 200 billion Euro).

[Captain Con O'Sullivan]

Ah ... Depfa ... its owner Hypo was indeed bailed out by the German government and I've been snuffling around the news reports on that from some of the English language editions of the German newspapers and the one impression I am left with is that Depfa/Hypo was very hurriedly taken under Mrs Merkel's wing in order to keep the lid on the behaviour of a number of German banks in connection with low regulatory regimes like the Dublin IFSC and in particular some of the transactions run via Austria and elsewhere.

Hypo I am convinced is an iceberg in connection with German banks and Mrs Merkel is in the same position as Cowen and Lennie two years ago in that she doesn't want a light shone in this area.

If the German electorate knew what the banks had been doing to put holes in their own balance sheet very like our friend Sean Quinn did to Quinn group then there would be serious uproar in Germany.

Hypo isn't the only German bank involved either ... I'm certain of that.

[TotalMayhem]

But why do loans from the ECB to Depfa (which obviously received more than any other 'Irish bank') appear on the 'Irish balance sheet'???

[Captain Con O'Sullivan]

Because Depfa is registered as a subsidiary of Hypo in the Dublin IFSC I should imagine ... unless there is a reason why Depfa's books should not be looked at in Germany by German regulators

[TotalMayhem]

Isn't it funny then, that we don't hear a word about this house of horror then in the news HERE if their debt is being dumped upon us as well?

[Captain Con O'Sullivan]

Thats exactly it ... Mrs Merkel doesn't want Depfa's books being looked at in Germany for the same reasons Cowen and Lenihan don't want Anglo's books being looked at... the German taxpayer has effectively bailed out Hypo whose books are clean except for the losses at the Depfa subsidiary in Dublin IFSC ... the losses are effectively from the offshore subsidiary at Hypo and she's managed to keep German eyes focused on the holding company.

The more snuffling around I do on this in Germany and in Italy the more I suspect that the events at the Quinn Group are a pointer to what's been happening at a number of large banks across Europe.

Its politically more palatable for the German government to be able to keep Depfa books at arms length from the German taxpayer in the same way that Quinn transactions are muddied...

The politicians can't accept the fallout from the truth becoming known because the first question will be 'where was the regulation'?

[TotalMayhem]

The more snuffling around I do on this in Germany and in Italy the more I suspect that the events at the Quinn Group are a pointer to what's been happening at a number of large banks across Europe.

Could this be true then???

Basically it boils down to this. The system of finance, globally, must lower its level of indebtedness. The obvious place is bank bad debts. That has been ruled out by the financial class via our oh so compliant politicians. The other way to lose indebtedness is to use a country or countries as a conduit for debt reduction - a sphincter through which to sh!t out as much debt pressure as possible. Ireland is already in that ignominious position.

And so it has come to pass for Ireland. European and UK banks are now going to use Ireland as their sphincter.

Sphincter-nomics

[Captain Con O'Sullivan]

Looks about right to me....

[C. Flower]

Very interesting thread.

[TotalMayhem]

Very interesting thread.

I stumbled upon this last night, and TBH, i couldn't believe my eyes when I spotted Depfa topping the (s)hitlist of 'Irish banks' ...

[Captain Con O'Sullivan]

Strange sort of schizophrenic half-lit world some of these heavy gambing bank subsidiaries inhabit .... they are foreign and full of FDI when ministers are thinking of taxes ... when regulators look at them they are in the IFSC and therefore in a low tax and low regulation environment .... when they want their debts paying off they are as Oirish as a Boston Barmaid on paddys day.

Guess thats why banks like offshore centres. A flexible profile for a flexible economy. Always flexing away from regulation and horrific things like accountancy and flexing towards money laundering and gambling like a Vegas whore.

[C. Flower]

According to an article in Der Spiegel, Irish banks were cut off from the capital markets in October and received aid to the tune of 150 billion Euro. 20 billion Euro from the Central Bank of Ireland, topped up with 130 billion Euro from the ECB.

Short term loans from the ECB to Irish banks*:



* Milliarden = billions

Depfa Bank was purchased by German mortgage giant Hypo Real Estate in October 2007. Through a series of bailouts, the German government ended up with 100% ownership of Depfa's parent company, Hypo Real Estate.

How come Depfa Bank still appears on the 'Irish balance sheet'?

This so-called bank, hardly a household name in Ireland, certainly dwarfs the terrifying figures we have gotten used to hear in connection with Anglo. Depfa is said to be responsible for at least two thirds of the HRE losses (well over 200 billion Euro).

What's the source of that table, Total Mayhem ? Who produced the figures?

[TotalMayhem]

What's the source of that table, Total Mayhem ? Who produced the figures?

Table is a screen shot, taken from Spiegel Online, see the link in the OP, Source (Quelle): Barclays Capital

[C. Flower]

Table is a screen shot, taken from Spiegel Online, see the link in the OP, Source (Quelle): Barclays Capital

Yes - but do we know if it has any official standing?

[C. Flower]

Dan Boyle today in the Senate referred to unhealthy related activities of German and Irish banks.