Has Morgan Kelly laid bare the truth? Is Cowen committing Financial Treason?

[yehbut_nobut]

Ok - thread title may be a tad hysterical, but reading this article from the IT (which has been posted elsewhere) made my jaw drop.

At the original crisis meeting on September 29th, Brian Cowen claimed that the blanket guarantee to all six banks was given “on the basis of the advice from those who are competent to so advise the Government”.

That does not appear to have been the case.

According to a source of mine very familiar with what happened at the meeting, extending the liability guarantee to Anglo Irish and Irish Nationwide was strongly opposed by representatives of the Central Bank and the Department of Finance (who reportedly came into the meeting with a draft Bill to rescue only four institutions). However, I am told they were overruled by the Taoiseach and the Minister for Finance, who were supported by the Financial Regulator and the Governor of the Central Bank on the grounds that a sudden liquidation of Anglo’s assets would not be in the national interest.

It is still worth asking what would have happened if Brian Cowen had listened to the Department of Finance and allowed Anglo Irish to sink? The answer is: very little.

Developers would have gone bust and commercial property would have become more or less worthless, but that is going to happen anyway, with or without Anglo Irish. Depositors of Anglo Irish would have been paid off in full, and the hit would have been taken by the international financial institutions that hold around €22 billion of its bonds.

These bondholders are professional institutional investors who signed up for higher returns on Anglo debt in the knowledge that they were facing higher risks. They are, moreover, insured against their losses through insurance contracts called Credit Default Swaps.

This is the central point about the bailout of Anglo Irish, and one that has not received any attention: the only effect of a bailout is that the Irish taxpayer will make up the losses of Anglo Irish’s bondholders instead of the insurers who had already been paid to underwrite the risk.

Why it is necessary to transfer Anglo’s losses from the writers of Credit Default Swaps to the Irish taxpayer is something that the Government has not thought to justify.

Was that the truth behind what's being done in our name in the Dail today?
Does that not make Cowen's attempt to squash free discussion stink of something much worse...Honest rank and file FFer's should surely want nothing to do with this.

[slx]

Ok - maybe a tad hysterical, but reading this article from the IT (which has been posted elsewhere) made my jaw drop.




Was that the truth behind what's being done in our name in the Dail today?
Does that not make Cowen's attempt to squash free discussion stink of something much worse...Honest rank and file FFer's should surely want nothing to do with this.

I've said it on another thread, and I will say it here again. The way the Government has been acting is terrifying. It seems to be lacking any kind of analytical basis and is completely kneejerk stuff. This isn't the kind of thing you can afford to get wrong or to base on a hunch.

I am now in a situation where I am actively re-assessing basing myself and my business here. I have basically lost all confidence in the ability of these guys to run the country and I really don't think I can wait until the next general election to see what happens.

[constitutionus]

I've said it on another thread, and I will say it here again. The way the Government has been acting is terrifying. It seems to be lacking any kind of analytical basis and is completely kneejerk stuff. This isn't the kind of thing you can afford to get wrong or to base on a hunch.

I am now in a situation where I am actively re-assessing basing myself and my business here. I have basically lost all confidence in the ability of these guys to run the country and I really don't think I can wait until the next general election to see what happens.

actually SIX , whats bother me is more and more i think we're looking at good ol boy protectionalism of the lads.

and if the rest of the country goes down the swanny tough.

for the FIRST time the "good and the great" in this country are going to have to get it in the neck, and the gov is going to have to shyte or get off the pot . its going to be VERY interesting to see how this pans out.

[Partizan]

Ok - maybe a tad hysterical, but reading this article from the IT (which has been posted elsewhere) made my jaw drop.




Was that the truth behind what's being done in our name in the Dail today?
Does that not make Cowen's attempt to squash free discussion stink of something much worse...Honest rank and file FFer's should surely want nothing to do with this.

Your concerns are well justified. More conclusive proof if ever needed be that Clowen and Zanu FF are acting in the best interests of the developers and themselves over the people.

They must go for the sake of us all.

[yehbut_nobut]

Another question - were Gormley's Ryan, Seargent & co aware of this at cabinet discussions last september, or is Kelly's article news to the Green's too? Gormley was sounding strident on the 9 news last night when talking about full openness regards the goings on at Anglo.

Have Lenihan and Cowen been fully open with their government partners?

[hiding behind a poster]

Another question - were Gormley's Ryan, Seargent & co aware of this at cabinet discussions last september, or is Kelly's article news to the Green's too? Gormley was sounding strident on the 9 news last night when talking about full openness regards the goings on at Anglo.

Have Lenihan and Cowen been fully open with their government partners?

And is it possible that Gormley is setting up a demand for full openness, knowing that FF won't comply? Unlikely, but just a thought.

[blacbloc]

And is it possible that Gormley is setting up a demand for full openness, knowing that FF won't comply? Unlikely, but just a thought.

It's no use looking to the Greens. They'll capitualte on this as on everything else. Gormley does all this posturing at times like this - with the approval of FF who entirely understand that he has to performe a pantomime for his voters. He probably gets advice from FF people on what to say and where to say it - to make it all sound convincing, like.

[yehbut_nobut]

And is it possible that Gormley is setting up a demand for full openness, knowing that FF won't comply? Unlikely, but just a thought.

hmmm, thing is, how moot will that be if the vote gets carried?

[code twinkle]

made my jaw drop too. everything he states is verifiable and not in the least hysterical. the nationalisation of Anglo irish is a one-way ticket to iceland

[powderfinger]

Who was Cowen referring to with his "those who are competent to so advise the government" remark?
Was it Henrietta Baldock from Merril Lynch?
Superwoman dealmaker advises on Irish banks - Financial crisis - Independent.ie