What were the circumstances of the panic which led to the guarantee of 30/9?
It has been a puzzle. The lying liars have been tight-lipped. But now we can formulate a simple theory.
Anglo year-end was approaching. Normally at year end Anglo would take short-term “deposits” from other Irish Banks, corporates and individuals. This
created the illusion of a strong bank. Essential to maintain a reasonable loan-to-deposit ratio. Of course in reality Anglos delinquent lending practices
were not adequately backed by deposits or capital. Shareholders and bond-holders must never find out.
By end of Sep ILP, and others, did not want to play ball. Why give 7Bn to a bank that could go bust at any time?
So the scam was up for Anglo.
UNLESS the government stepped in with a blanket guarantee. This would allow the banks to continue to transfer
billions in order to cook each others books.
The hypothesis is that sole purpose of the guarantee was to allow this scam to continue ahead of Anglos year end.
Sheep on the Coolie peninsula… in the absence of hard information or credible management at any of the banks, the FR, the Dept. of Finance, I am inclined to agree with you.
This is outright fraud. Fitzpatrick should be put on trial and made liable in person with personal property. He should be jailed and his family put in a council estate. The responsible within the Financial Regulator should be tried for negligence in carrying out their duties. That clown the regulator should be brought out of retirement and then sacked and made to pay back the lump sum he got. The Financial Regulator was supposed to spot these transfers and report to the central bank. The responsible at the Central Bank should be tried for negligence. For failing to raise the issue of getting inadequate reports from the regulator.
People should be up in arms about this but the feckin eejits will instead march about 40 extra quid they need to put in their pensions every week. I am nauseated when hearing what the Govt the Unions and the media in general (with the exception of the few who know what they’re talking about) have to say about the issues.
I just wish I was ignorant and stupid. I wouldn’t be this frustrated for realising the place is being run by incompetent thieves.
Plus…key quote from the SBP the following Sunday…the treasury depts of a whole bunch of multi-nationals had moved several hundred billion out of Irish banks in the previous few weeks.
If Anglo Irish had gone under in these circumstances and for the reasons outlined above that money would not have come back to any Irish banks in any scenario…
So what we thought was pure cronyism now turns out to be cronyism with a liberal admixture of fraud.
Is there any chance that a whistle blower would be willing to relase some damning information from the inside?
Oops. I just remember, there’s plenty of daming information from the inside already out there and nothing is happening.
I can imagine people literally starving and shivering in their houses in this country in the not too distant future (say 2 to 3 years).
It’s happened before.
It’s likely to happen again.
As I understand it, Anglo made a short-term interbank loan to ILP. Part of this cash was transferred by ILP to a subsidiary
Irish Life Investment Managers and loaned back to Anglo. The latter was treated as a corporate deposit. This
fraudulently inflated the deposit-to-loan ratio of Anglo’s books. A money-laundering scam.
A few remarks
(1) ILP knowingly assisted Anglo to cook its books, there is no other interpretation.
(2) It appears that Anglo assembled 7Bn in cash to facilitate this scam. What was the source of this cash?
Short-term ECB funding, for example? More interbank loans?
(3) Finance Minister says he did not read about this activity in PWC. Is this because he already knew about it?
I’m serious here. Come on folks, we were very successful in the HCL complaint in my opinion. We can do it again. *FinG wishes now that legal studies was taken instead of archaeology at college *
