An article in the Mail on Sunday (6th Sep 09). I don’t have a link.
What the F*** are these directors appointed by de gubberment actually doing in these banks?
Whats that eejit dukes doin in Anglo while this is going on?
perhaps nationalising banks isn’t so clever either.
when banks go kaput they should be sold to whomever wants to buy them(subject to competition rules) at whatever price they are really worth.
Some further commentary from the Mail on Sunday
Exactly what efforts were made to recover the debt from the Golden Circle? Has Joe O’Reilly paid his share of this debt?
It looks like the “let’s fool the market” golden ten will escape jail for their part in robbing an estimated EUR308 million from the taxpayer/citizen.
Some citizens end up in jail for defaulting on fairly small amounts. They can lose their homes. They can be chased on future earnings. They find it difficult to get further loans. Perhaps it is right that people are responsible for their debts. But, at least, it should apply to everyone.
I hope this gets a lot of media coverage.
The problem is the terms on which the loans were given. They were non-recourse except in respect of the asset being purchased i.e. the shares. The cirlcle may have had only a small personal liability. I’m not sure where the €143m that will be paid back is coming from.
Given that the circle boughts hares which are now worthless I don’t see how they robbed anything unless they benefitted in some other way.
The deal was rotten alright but its the why it was put together that needs to be answered.
IIRC, the loan terms were changed to non-recourse after the guarantee. There are a couple of options worth looking at. For example, do Irish credit laws allow non-recourse? Were the changes to loan contract legal? If legal options don’t cover it, what about trying to shame these people in to honouring their debts? Put their reputations are on the line. Take them to court to ask for the money back. Get them into a court to explain why they’re refusing to pay their debts.
There’s 308m owed, that’s a good reason why something should be done.
Precisely the reason why anglo should have been allowed to go bankrupt.
It would have stopped this madness in its tracks.
All sounds remarkably like the strategy employed by one Nick Leeson back in 1995.
It’s all going pear shaped
Ratchet up investment in order to “support” the market
It’s all still going south
Keep playing your position
Dig in and hope to jazus there isn’t a (what would now be called) negative Black Swan, and you never know might get lucky!
Usual outcome … the guys placing the bets end up saying … “Bugger” and looking for an out.
I mentioned the very same thing with regards to NAMA viewtopic.php?f=50&t=24661&p=293635&hilit=#p293635.
In response to a losing streak, they have gone ‘all-in’ with the last throw of the dice in an effort to recoup their losses.
Get out on the streets of Dublin next Saturday and protest.