The Anglo Tapes


#341

Nice.
How about instead of using a club, one employs a sack of doorknobs? Or since it’s a nice burlap sack, and easy to pass needles/wires/filaments through, you could have some sort of Saw-movie body-horror ordeal.

And once the screams are unbearable, obviously the easiest thing is just to toss the whole sack in a pond, like with kittens.


#342

What is Michael D. smoking? irishtimes.com/news/presiden … -1.1448578

Drumm and Bowe and Fitzgerald are patently Irish - they’re chancers but they’re Irish chancers. Their attitudes aren’t shared by everyone in the country, but they’re certainly shared by some. The behaviours: making uneasy jokes when in trouble, light-hearted xenophobia, general cute-hoorism. Sound familiar?


#343

+1

But his comments are for an international audience.

It some ways he is right. The Irish are an extremely deferential, polite and patient people. So much so, in fact, it creates a vacuum for bullies, loudmouths, liars and all-round scoundrels enter the higher echelons of business, the media and politics.


#344

No true Scotsman!


#345

Ain’t that the truth. It’s amazing how spineless many Irish people become when faced with a confrontation. Hence the sociopaths have free reign.


#346

Patrick Honohans interview with the Frankfurter Allgemeine Zeitung
centralbank.ie/press-area/pr … anFAZ.aspx


#347

Solid performance under the circumstances.


#348

Bowe comes across as more polished and knowledgeable than the others in these tapes. I hope any Inquiry gives him ample time to expand on what he said here.

Idiot question: is there any way govt. could have compelled the bankers to sign personal affidavits testifying to the state of their banks before giving them the guarantee?


#349

What, a personal guarantee for €7bn? :smiley:
TBH I think everyone was trying to incriminate each other as much as possible to ensure no-one would rat the group out. At some level they probably all knew that either it would work and they’d all be heroes, or…


#350

+1

Good questions and answers.


#351

He gets to the point, how could the regulator have not known how much Anglo would require for liquidity. Also how could Anglo have been so sure they wouldn’t know, there was no concern from Bowe that the 7B figure would be questioned as being an underestimate.

I assume liquidity was just looking at deposit flight and bond maturity dates. Was not one person from the regulator/central bank side able or prepared to sit down for 30 minutes to come up with their own figure.


#352

You did hear the tape where Drumm had come to the conclusion that his auditors or whomever weren’t going to stand by him. That they were no longer bought and paid for and his board were asking him what he did to piss them off.
The Regulator appeared to rely upon others to state that banks were in good financial order rather than having the skills inhouse despite them employing 1500 people or whatever the number is.


#353

AKAIK 3-4 Regulating anglo and bank of ireland
Definitely nothing like 1500 in the regulators office in 2008


#354

Wasn’t that a reference to Merrill Lynch, brought in by the government to assess the banking sector, rather than Anglo’s auditors?


#355

same point. regulator doesn’t have the ability regardless of their size to suss out a bank and rely on externals and then they say something along the lines of they’d better not be hoping to get any juicy work out of us after that. Really showed how the external consultants were seen as rubberstamp merchants more than anything else.


#356

the regulator is essentially relying on the bank being honest and the auditors producing true and fair accounts. Neither of which seems to apply in the real world. I remember a partner in one of the big4 a/cantcy practices telling us that he expected auditing a companys books would eventually become a civil servants job.


#357

At some level you could justify it being a revenue dept function


#358

This is where I read it.
1500 staff compared to 15,000 in the Fed yet no one working at the coalface making sure that the banks are solvent/liquid/etc… and no distractions of a currency to look after either.

namawinelake.wordpress.com/2012/ … f-ireland/


#359

so the the regulator should audit the banks books and end this charade with E&Ys/ KPMGs then?


#360

Honohan described it as fooling the regulator in a “simple and gross way”.

For the liquidity aspect there were probably no real auditing skills needed especially not for rough figures. I’d accept they needed to be called in to to guess how bad were Anglo’s loans or how much collateral Anglo could give but the problem at that stage was seen as how to fund the run on deposits.

There must have been weekly if not daily reports on bank deposits arriving at the central bank so they knew the size of the run.

Seemingly the bank was losing 1B+ a day in deposits and was asking for a 7B cheque to sort itself out, the numbers clearly didn’t add up. All they got from the regulator was Jaze, that’s a lot of money - instead of - what would that buy you apart from a week or two?