Fingleton's son hawks Irelands AAA rating around London

windy · October 3, 2008, 2:06pm

The front page of todays FT quotes from fingleton’s letter.Predatory Pricing was alluded to in a quote from moron finance minister lenihan.

Basically the tone of the article is that Ireland is a banana republic .

In an opinion piece Martin Wolf states…

‘’ But it is a beggar thyself policy,since it gives management and shareholders the right to gamble with the Public Sector’s balance sheet’'.

fingleton is a traitor to his country.In former times this guy would now be hanging from a rope.

What_Goes_Up · October 4, 2008, 10:08am

irishtimes.com/newspaper/opi … 50173.html

Dealing with the banks

THE USE by the Irish Nationwide Building Society of the State guarantee to drum up business for itself in the UK pretty much says all that needs to be said about what is wrong with Irish banking. It also highlights the problem that the Government now faces.

Although the purpose of the guarantee is, of course, to enable the banks to attract and protect their deposits during the current crisis, the Government has made it clear that it does not want it to be abused. But it appears that so deeply entrenched is the culture of devil take the hindmost in Irish banking that Irish Nationwide could not resist hawking round the taxpayers AAA credit rating, even as the Government was coming under the most intense pressure to defend its actions.

Irish Nationwide’s behaviour may be mind-boggling in its crassness but it would be naive to think that it was the exception. The other banks are without doubt making sure that everybody who matters knows they are now underwritten by the taxpayer.

This highlights the need for a swift resolution of the anomalous situation in which foreign-owned Irish banks now find themselves. It also brings into focus the need to address corporate governance issues at Irish Nationwide. But, above all, it is a timely warning to the Government as it goes about putting flesh on the bones of its guarantee. If a reminder was needed that the banks will continue to act in their own short-term interest, regardless of the obligation they are now under, then this is it. There has not been and will not be any Pauline conversion.

As he sits down with the banks this weekend to try and agree the price that they will pay for the Government’s support, the Minister for Finance must drive a hard bargain. There is no advantage in extracting terms that, in themselves, undermine the banks the guarantee is supposed to protect but there needs to be a punitive aspect to what is agreed. This applies particularly if there is any future abuse of, or profiteering from, the guarantee.

The Government, in this instance, should not be afraid to flex its muscles. The six banks currently covered by the guarantee are not in a strong position. They have little choice but to accept the Government’s terms or else they face a very uncertain future outside the safety net of the taxpayers’ guarantee. There is a political as well as a financial imperative on the Taoiseach and the Minister for Finance to strike a realistic price for the deal in the interest of the public at large.

What_Goes_Up · October 4, 2008, 2:27pm

examiner.ie/irishexaminer/pa … qqqx=1.asp

Irish Nationwide ‘sorry’ for email
Saturday, October 04, 2008
By Brian O’Mahony, Chief Business Correspondent

IRISH Nationwide Building Society has apologised for an email sent by the son of chief executive Michael Fingleton soliciting deposits in Britain on the strength of the Government’s guarantee on deposits in Irish-owned banks.

In its statement the society described the action as “inappropriate and regrettable in the circumstances”.

Michael Fingleton Jnr sent the email to a friend in the company’s London office saying Irish Nationwide now was the “safest place to deposit money in Europe with an AAA guarantee from a country with the lowest national debt to GDP ratio of any AAA country”.

“It is inappropriate to use a guarantee in marketing, advertising, or in any communications to customers or potential customers,” the Financial Regulator said in a statement.

Central Bank governor, John Hurley, said the letter was a serious breach of the terms of the guarantee.

The action was “not acceptable and I think the statement from the Irish Nationwide reflects this.

“The Financial Regulator made that absolutely clear … and again that is an issue that is being addressed now by the Financial Regulator,” he said.

Joan Burton, deputy leader of the Labour party and its spokesperson on finance, said the Government must indicate what action it will take against banks found to be abusing the guarantee scheme.

“I am sure that officials of other institutions will not be so imprudent as to put their comments in writing, but what possible steps can the Government take to prevent this selling pitch being made verbally?

“The last thing we want from the guarantee scheme is a flood of hot or dubious money into Irish banks,” she said.

Neither was it in anyone’s interest to have vast sums being lodged in Irish accounts, only to be withdrawn weeks or even days later, she said.

The banks promised, Ms Burton said, that the guarantee scheme would not be abused in this way.

“This email raises serious questions about the value of this commitment.

“The Government must make it clear that banks found to be abusing the scheme will be subject to sanction and, in the case of systematic abuses, may be removed from the scheme altogether,” she concluded.

confused · October 4, 2008, 10:58pm

Marian Finucane had Sean Fitz from Anglo on this morning and asked him what he thought of Fingleton junior’s actions. Sean said “I feel sorry for him”. Says it all really.

Green_Bear · October 4, 2008, 11:18pm

Irish Nationwide email ‘unacceptable’ says Taoiseach
04/10/2008 - 09:42:30
sbpost.ie/breakingnews/busin … daucwsngb/

The Taoiseach has come out strongly against the actions of an Irish bank official, in the wake of the Government’s new support scheme for banks and guaranteed deposits.
Michael Fingleton Junior, the son of the Chief Executive of Irish Nationwide, sent an email to a bank in the UK, aimed at attracting business by claiming that Irish banks are now among the safest in Europe.
It is feared the email could be seen as an anti-competitive move for international banking.
A Department of Finance spokesperson confirmed yesterday that the matter has been referred to the Financial Regulator for investigation.
Speaking in Cork last night, Taoiseach Brian Cowen described the development as unacceptable.
“It’s not acceptable behaviour”, he said. “It’s with the Financial Regulator now and I expect them to take whatever action is necessary to ensure it won’t be repeated.”
Mr Cowen added that the whole purpose of providing the state guarantee was to prevent predatory practice.

the_edge · October 4, 2008, 11:23pm

I’m not convinced the regulator can do anything, apart from flap their hands around.

The dude hasn’t broken any laws, as far as I can see.

But Fingleton investigates Fingleton would make a classic headline.
( oft.gov.uk/about/organisatio … /fingleton )

the_edge · October 4, 2008, 11:32pm

Actually, the whole thing strikes me as scapegoatery.

A 27 year old bank official is to carry the can for the sins of the banking sector, and its regulators. Let’s get real here.

It is in the nature of Irish society to look for convenient scapegoats rather than ask the deeper questions.

verbatim · October 7, 2008, 2:09pm

Cheapest advertising they ever had.

Homeboy · October 7, 2008, 2:27pm

Just wondering…did Michael Fingleton Jnr get his current post in INBS through competitive interview with an impartial interview board? Any thoughts??

ewd3 · October 7, 2008, 2:29pm

What does a southsider say first day on the job

thanks Daddy

CaveCanem · October 7, 2008, 2:33pm

xman · October 7, 2008, 2:35pm

I’m sure it was just a happy co-incidence that young Michael happened to land a job in the same company where his Daddy is the boss.

ewd3 · October 7, 2008, 2:45pm

It’s Daddy’s society

he owns it doesn’t he? the man is entitled to employ who he wants given he owns all the equity

**
I hope someone somewhere is digging a deep ditch **

Pill · October 7, 2008, 2:52pm

Financial watchdog fines Nationwide €50,000
Tuesday, 7 October 2008 15:35
The Financial Regulator has fined Irish Nationwide Building Society €50,000 after it circulated an e-mail which breached the Regulator’s consumer protection code.

The e-mail, sent by the son of CEO Michael Fingleton, was seeking deposit business in Britain on the strength of the Government’s move to guarantee deposits in the Irish banking system.

In a statement this afternoon, the Regulator said it had reasonable cause to suspect the building society has committed a breach of a regulatory requirement in relation to the Financial Regulator’s Consumer Protection Code.

AdvertisementThe financial watchdog said that Irish Nationwide failed to ‘act professionally and with due regard to the integrity of the market’.

It said that it had reprimanded Irish Nationwide and required it to pay a monetary penalty of €50,000.

Irish Nationwide has apologised unreservedly and said the email was ‘inappropriate and regrettable in the circumstances’.

Michael Fingleton Jnr sent the e-mail to a friend from the Irish Nationwide’s London office stating that Irish Nationwide represented the ‘safest place to deposit money in Europe with an AAA guarantee from a country with the lowest national debt to GDP ration of any AAA country’.

The e-mail said that deposits attracting fixed-term interest rates of 6.75% and 7.1% were guaranteed regardless of size and represented the best value in the UK market.

The e-mail continued: ‘Please be so kind as to pass on to friends, colleagues and clients as you see fit.’

rte.ie/business/2008/1007/nationwide.html

MortgageBroker · October 7, 2008, 2:54pm

mortgagebrokers.ie/blog/inde … ance-bill/

ewd3 · October 7, 2008, 3:30pm

from your blog
**
World GDP is 50 trillion, the derivative market is 500 trillion, those are frightening (but also true) numbers. **

if that’s true it would seem to entail a load of pain…incredible

Fawaka · October 8, 2008, 8:32am

Seems two can play that game!

elsevier.nl/web/10206528/Nie … tentie.htm

In Dutch but basically it’s about Minister Bos giving the recently nationalised ABN-Amro a slap on the wrist ( no fine! ) for coming out with an advertisement on Tuesday morning suggesting that savings in their bank are the safest now that they are owned by the Dutch Government.

Don’t you just love the entrepreneurship these banks show!!

yoganmahew · October 8, 2008, 8:35am

To be honest, I don’t have a problem with this. I don’t see what all the fuss is about. If he had said something in his email that wasn’t true, maybe that would be different, but what he has said is all true.

Now whether the government should be getting a decent slice of the action for providing this guarantee is another question…

crabbybear · October 8, 2008, 9:58pm

6% for 6/9/12 months fixed with 100% gov guarantee – thinking of taking a bit of that ?

If they go under do you still get your monthly interest from the government or is the money frozen at time of bust?

yoganmahew · October 8, 2008, 10:06pm

Frozen at time of bust according to AAM.