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About LinkBacksThat sounds like fraud to me. And it seems to have been mandated by the government. Astonishing.
That sounds like fraud to me. And it seems to have been mandated by the government. Astonishing.
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Silly question no doubt but how can the Govt. order AIB and BOI to give money to Anglo?
Was this all happening when they seemingly couldn't persuade the same banks to lend to SMEs who were/are desperately crying out for credit?
No, completely different scenario. The Irish Life loan itself was fine, the way it was reported certainly was not.Originally Posted by Dreaded_Estate
In general I've no issue with this. Governments all around the world took extraordinary measures around the same time to prevent their country's banks collapsing.
As for the title...the Government mightn't be happy about people knowing this, as it betrays the doubts they had about how to handle Anglo. AIB and BOI couldn't care less if people know or not though. It's not going to affect them one way or the other.
I can't see what the big deal with this is.
It looks like another one of those stories that describes a complex banking operation, but which because it contains a reference to Anglo, triggers the usual bout of conspiratorial drivel.
This is backed up by the fact that it appeared in the Sunday Business Post, which is 2% news and 98% padding.
All lending in the domestic banks was covered by the Government Guarantee at the time, so there was no risk in domestic banks making credit lines available to each other, and Anglo was having serious liquidity problems, so it made sense that 'cash' was moved around in the system to make sure that nobody went bust.
This move deserves praise, not criticism. It probably saved the banking system.
A demagogue is someone who will preach doctrines he knows to be untrue to men he knows to be idiots.
Why did the "banking system" need saving in the first place?
"No one rules if no one obeys" - Tao
If I am correct this issue is outside the time frame which exists in the remit of the banking enquiry !
Fixed that for ya, goose
Last edited by Mic; 20th March 2010 at 10:50 AM.
How did they plug the hole?
The Irish Times - Monday, April 5, 2010
Government asked AIB and BoI to help save Anglo
SIMON CARSWELL Finance Correspondent
ALLIED IRISH Banks (AIB) and Bank of Ireland (BoI) were asked during crisis talks on the night the Government bank guarantee was introduced in late September 2008 how much they could provide in liquidity to Anglo Irish Bank, according to well-placed sources.
During emergency discussions with the Government and senior regulatory officials, both banks consulted their treasury departments shortly after talks began late on Monday, September 29th.
Both heard from their treasury units within hours and determined that they each could provide €5 billion in loans to keep Anglo float.
The two banks believed that the loans to Anglo, which had haemorrhaged deposits during September 2008 at the height of the financial crisis, would be only temporary and that Anglo would be nationalised the following weekend.
Nationalisation was regarded as impossible midweek while markets were open, as it would affect the other listed institutions.
AIB and BoI both sought assurances from the Government that night that the €10 billion would be repaid that Friday ahead of the Government’s expected nationalisation of Anglo.
The following day, neither bank was contacted by the Central Bank, the Financial Regulator or Anglo in relation to the loans of €10 billion, or received any explanation as to why the loans weren’t needed.
Following the Government’s announcement of the system-wide deposits and funding guarantee early on September 30th, deposits flooded into the Irish banks.
Five months later it also emerged that Irish Life Permanent (ILP) provided €3.45 billion in temporary loans to Anglo on the day of the guarantee – in addition to €4 billion loaned by ILP to Anglo earlier that week – and that the two had also supported each other with liquidity earlier that year. The €7.45 billion in loans are now being investigated by gardaí.
Last week Labour leader Eamon Gilmore called on the Taoiseach to publish all advice on which the decision was made to include Anglo in the guarantee.
In response, Mr Cowen said that the decision to guarantee the six domestic institutions was in line with advice provided that night by the Central Bank, the regulator, and senior officials of the Department of Finance and the National Treasury Management Agency.
Documents supporting that decision would be made available to the inquiries being carried out into the banking crisis, he said.
The country’s two largest banks sought to become involved in the emergency talks on that night of September 29th-30th, 2008, after the collapse of US bank Lehman Brothers froze the wholesale money markets, sparking a chain of bank rescues across the globe.
On Monday, September 29th, Irish shares fell the most in a quarter of a century. Anglo was the worst hit Irish bank, dropping 46 per cent, and was facing full collapse the following morning after the US Congress rejected a banking bailout deal overnight.
The two banks entered the talks that evening after they requested, through contacts at one of the banks, to discuss the intensifying crisis facing the banking system.
Banking sources differ on what the two financial institutions wanted at the meeting. Sources with knowledge of AIB’s position on the night said the bank sought no support for itself but pressed that the Government needed to act to prevent Anglo’s collapse.
The sources claimed that the senior bankers in attendance – Dermot Gleeson, then chairman of AIB, and then chief executive Eugene Sheehy – were told the State had prepared a guarantee scheme that could protect the entire system but that they would have to ask the Government for it.
BoI, which was represented by then chief executive Brian Goggin and governor Richard Burrows, argued for Anglo to be nationalised and the other institutions guaranteed, according to sources familiar with its position that night.
I have wrote about on numerous occasions on this site and people do care, Brian knew about this and so did Lenny and many others, FFS sake I knew and its all dodgey .
In todays Sunday Mail. (no link)
Mr Drumm claims that Government ministers called AIB and BOI and forced them to come up with 5billion emergency line for anglo.
Amazing Stuf
So the SBP says ordered and the mail says forced and I say it was at least 9billion.Where do we go from here?
[ame=http://www.youtube.com/watch?v=EnEWxNFHyW4]YouTube - CAN ONE BANK ???[/ame]
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