Liveline 16/1/09....Is this for real ? 19/1/09...even worse

Anglo shareholders on saying anyone who bought in the last 3 months should get all their money back !!! as they didn’t know the true state of the bank.

FFS everytime Anglo appears on the news my budgie starts flying around his cage making a shrill sound, very like “dead duck, dead duck”.

This country is a complete joke at this stage,this shit on the national airwaves.

Caveat Emptor

flicked it off just after 2pm.

Interesting to see that the Dept. of finance keep an ear on programs like this now seen as they “contacted the program” to clarify that all deposits, regardless of size, were covered by the state guarantee rather than the 100k limit that Ray the all knowledgeable ex-civil servant had stated. They must be on high alert for public discussions that may trigger a run. Their nervousness make me nervous.

They may not have known, but the share price reflected the “true state”. Why did they think the shares were so “cheap”?

Anglo Share Price last 3 months. Shares lost 90% of their value during the period in question. Again.

I listened to it.

I think that woman has a case. That company mislead it’s shareholders and the public about it’s directors loans (at the very least). Therefore some people bought shares in that company, and they were not properly informed about what they were buying into. Both the company and it’s auditors have questions to answser.

Plus, the government, in an astonishing (but par for the course of this government) shilling of a private company, assured everyone that all banks were solvent and would trade their way out of the current difficulties.

Yes, the shareholders were misled about the true financial state of the company (in fact nobody seem to know what the true financial state of the company is). They possibly have a case for an action against the auditors - although I forget they dynamics of whether they have to sue the directors who sue the auditors or if it’s the other way round.

But to my mind people who bought shortly after the publishing of the 2007 accounts have a much better case than those who bought recently. You can’t buy shares that have lost 90% of their value several months after the account have been published, see them lose another 90% of their value and then blame the auditors for not auditing them properly. The sheer scale of the percentage loss should have been sufficient to alert something was wrong.

Agreed xman, i don’t think we’ve heard the last of this one. Still, it’ll be a difficult one to get through the legals - prohibitively so I suspect.

Having said that anyone insane enough to have bought Anglo this year should have a very hefty ‘Stupidity Fine’ deducted from their settlement.

Fools and their money …

And isnt this because no one knows the true state of pricing in the property market? I mean, what else of substance is on their books but property? The Irish property market has more or less ceased functioning. How can we know the value of the banks balance sheets without property prices? We can’t, so everyone in authority blusters about.

Thing is, I think, prices are such that the banks are bust…

I don’t know if the latest accounts have been audited or not yet, but they show shareholders equity at €4 billion.

The stockmarket valued that at €150 million when the bank was nationalised.

If the market is proved right and the auditors sign off on that €4 billion as a *true and fair view *then the auditing “profession” is not worth a fuck.

Audit report is to the members as a body. Auditors do not have any responsibility in their audit report to anyone other than the company and the company’s members. Therefore, no responsibility to those considering investing in the company. This has been upheld in the courts.

Who here thinks it was the directors loans which sent this company to the wall ?
My bet is on the company strategy over the past 15 years.

Where did Arthur Anderson go wrong with Enron ?

Same could be argued vis a vis eircom of course all valid points since fitz is arch messer.
The country is in a state of monumental chasis.
The vacum is enormous and growing.
There has been no government for months now.

Fill in the blanks.

Honestly can’t remember MR A. :blush:

My point stands.

Given the fact that a Lenihan is involved, I shall allow you time to gather your thoughts and reply ‘on mature recollection’.

I also believe that she has a case but it is against the company’s directors and it’s auditors - not the state - we should not pay a penny piece to Anglo’s shareholders. I wouldn’t have touched this company with a bargepole and I steered all my family members away from it.

Not I. I agree with you, I think it is busted. If it was a run on institutional deposits, then the Central Bank is there to provide unlimited liquidity as the lender of last resort. This is its primary function in the banking system. To say that there was a run on liquidity is to say the Central Bank is unable to carry out its primary function.

Now, if, as hinted on this very forum, there is a hole in the accounts that meant that whatever happened they couldn’t be presented at the EGM (as that would admit insolvency) then that would force the hand. But a run on institutional deposits is a most unlikely reason for nationalisation - Northern Rock went bust when it couldn’t roll over debt, not because of the spectacular run on it.