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

[TotalMayhem]

It is understood that the funds were provided to Depfa as part of the ECB's eurosystem of "Screw the Irish".

Because Depfa was based in the IFSC, the good people of Ireland became the sheep to be shorn.

Whoever was involved in the process to issue a license to this rogue gambler Bruckermann should be thrown in jail and the keys 'mislaid'.

[Captain Con O'Sullivan]

Looks obvious to me that Merkel suddenly reversed her policy on bank bailouts just the same way Lenihan did when the grinning bankers told them that if they didn't bail it out the full scale of the fraudulent profile of bank report and accounts across Europe would come to light.

Thats what's scared Merkel and Lenihan into reversing declared policies and suddenly attempting to sweep the affairs under a carpet of public money.

It'll come out in the end. If I'm right about the scale of the problem then what politicians are doing is trying to slice and dice up the massive debts and get the taxpayers to pay for it so that it doesn't come out that both German, Irish, European and global regulators have been doing sweet FA to prevent the banks getting around proper governance.

In fact in a number of jurisdictions because of the revolving door relationship of bankers with financial regulators I would go so far as to say that regulators have facilitated the banks in this. Definitely in Ireland and Patrick Neary can attempt to sue me if he likes. His funeral.

'Good man yourself Willie'

[TotalMayhem]

Depfa still an 'Irish bank'???

David Malone elaborates on this question:

Ireland was Germany's off-shore tart

[Captain Con O'Sullivan]

Great article that ... David Malone has been about the most reliable professional commentator on banking in Europe and Ireland (and the deliberate lack of regulation arranged around it) that I've seen.

[wickedfairy]

interesting graph here from one of the comments on Golem's Depfa article, note Iceland's position vis a vis ours!

[TotalMayhem]

David mentioned 2 German TV documentaries in his article. Both referring to an international law firm which had arranged the Depfa/HRE deal.

But not only that, the same law firm with headquarters in the UK later drafted the German legislation regarding the nationalisation of the bank.

Here's a press release from that law firm, boasting how they scr3wed the shareholders:

... recognised as ‘Most Innovative European Law Firm’ at Financial Times awards ... for the firm's role as the strategic adviser to the German government during the credit crunch. In particular, its work drafting initial legislation to the crisis and development of a unique expropriation act to deal with non-cooperative shareholders of Hypo Real Estate bank.

Lovely, f*cking lovely.

And 'international' they certainly are: "The magic circle firm" is also advising Bank of Ireland, AIB, Anglo Irish Bank, RBS, the Irish government, Sweden's SEB, UBS, Bank Austria, Unicredit, ABN Ambro... the list goes on and on and on.

Maybe they drafted the Finance Act 2011, who knows?

[wickedfairy]

bankers host lavish parties in Davos and Gallaghers bakery obituary read tonight. A whole town sunk.

[morticia]

Very interesting article. In many ways, our stupid property bubble has made us the scapegoat for a lot of unrelated shenanigans that has very little to do with us. However, I suspect Bafin (the German regulator) may have tacitly accepted this when it bailed HRE/Depfa out..... we are, at least, not liable for THAT debt.

[TotalMayhem]

I suspect Bafin (the German regulator) may have tacitly accepted this when it bailed HRE/Depfa out..... we are, at least, not liable for THAT debt.

You suspect quite wrong, if you have a look at the graph in the OP it will become clear that Depfa is in fact getting by far the biggest chunk of our bailout money (25% more than Anglo), and there's no end to it. Depfa is still VERY active.

[morticia]

You suspect quite wrong, if you have a look at the graph in the OP it will become clear that Depfa is in fact getting by far the biggest chunk of our bailout money (25% more than Anglo), and there's no end to it. Depfa is still VERY active.

That is ridiculous. i thought the bailout money was only for the guaranteed institutions. How did that one get past us??

I'm aware they account for a lot of ECB bank lending that counts as "bank loans to Irish banks" but they're guaranteed by the German system, not us. We should not be paying for them, and I'm actually not sure that we are, to be totally honest.

[TotalMayhem]

That is ridiculous. i thought the bailout money was only for the guaranteed institutions. How did that one get past us??

I'm aware they account for a lot of ECB bank lending that counts as "bank loans to Irish banks" but they're guaranteed by the German system, not us. We should not be paying for them, and I'm actually not sure that we are, to be totally honest.

Well, we are paying it.

And we better honour "the promises that Ireland as a sovereign has made". Or else we will become the next Zimbabwe (acording to bully Lorenzo)

[TotalMayhem]

By the way, David has just posted the follow up:

Ireland was Germany's Off-shore Tart - PART 2

[morticia]

Well, we are paying it.

And we better honour "the promises that Ireland as a sovereign has made".

.

That was referring to guaranteed institutions, of which Depfa is not one. We have not ever made any promises with respect to foreign banks; Depfa was taken over by Bafin about a year before everything went snake. Merkel and Co paid over 100bn into HRE in 2008. The UK has bailed Ulster and Bank of Scotland Ireland.

I'm not saying you're wrong...... but I have not seen anything in the mainstream media that implies any of our bailout money is going to Depfa. Sure, they're tallied as an Irish based bank when the monies lent short term by the ECB are calculated. But we are only responsible for the guaranteed institutions in terms of reducing their dependence on the ECB as far as I am aware. All of the stuff in the IT, FT, etc is all about BoI, AIB, Anglo, etc, not the others, surely.

[Frankie Lee]

By the way, David has just posted the follow up:

Ireland was Germany's Off-shore Tart - PART 2

Goldman Sachs again.

[TotalMayhem]

Yes, big time, Goldman Sachs was/is acting as arranger and placement agent for Depfa programmes such as this one.