Derivative problem in irish banks. Banking crisis Part Deux

Uh-oh. Pat Rabitte talking about a “derivative problem in the Irish banks”…
(RTE News at ONe)

brain freeze here : As i heard Pat Rabbit, he seemed to imply that either a) the NPRF had been acting as a derivs desk/clearning house for the banks or b) underwriting the yokes.
You could not make this up…

OK time to get that smart-arse robot from a few days ago into a room and bate the story out of him…Good Grief!

Dan O’Brien sounds gobsmacked on RTE 1. Says tis the first time he heard it. He should read the pin…

Even government stooge Seán “These figures are broadly in line with government projections, and are largely on track given the strong possibility of recovery in the Irish economy in the very short-term” Whealan, is gobsmacked. Says he’s “trying to get my position” on the issue. Just ring Merrion Street Seán - they’ll draft up a response for you in jig time.

Just breaking today,

quite a few people refusing to comment, what do we know pinsters.

looks like the govt. guarantee was taken advantage off and some massive massive debts have been accrued

what do we know

alas the pin is once again broadly correct. someone pull a thread on this one together with links to past mad speculation that now seems to be…gulp…correct?

Dan O’Brien sounds gobsmacked on RTE 1. Says tis the first time he heard it. He should read the pin…

hmm…that post reads very familiar ; imitation is the sincerest form of flattery… :open_mouth:

indeed it is

a) NPRF unknowingly (formally) used as collateral
b) NPRF knowingly used as collateral
c) NPRF ran a derivs desk for banks
d) NPRF ran a clearing house for banks
e) magic pixies are involved…

any clues pinsters

Pin speculation on the derivatives book here - viewtopic.php?f=50&t=31533&hilit=derivatives

so the NPRF is ireland’s shadow banking system?

…or Fianna Fáil’s slush fund.

not sure if the IRS stuff is what PR is suggesting. That has mainly gone to NAMA. This seems to be other stuff in the Allied Anglo Bank of Nationwide Ireland nexus of weevils. Naked puts? Straddles? short straddles on their own shares… :open_mouth: Swaptions on the loans of the developers?

I’m pretty sure I do recall reading about the NPRF rumours/speculation (!) about the derivatives a while ago. Pretty shambolic it’s only being hinted at on public airwaves now.

I guess this explains why FF didn’t want to use the fund for stimulus !

Link to the most recent Anglo Irish interim report - … 10_PDF.pdf

Go to page 46 for derivatives.

To get some more flavour on the kind of derivatives that Anglo engaged in, you have to go to an older annual report - … t_2005.pdf

One thing you have to worry about is the growth of the deriavtives book. Remember, that Anglo have already transferred a large part of the derivatives book to NAMA and have taken a +50% hit.

Link to the NPRF asset allocation spreadsheet - … rmance.pdf

No mention of any counterparty risks.

Idiot question you know wneh Ollie Rehn briefed all our MEPs last week the one Joe Higgins walked out on as it was deem “commercially sensitive” is this possibly where Pat is getting this from and has waited until now to drop the bomb

Never mind. Just renamed.