Anglo case… April 29, 2014
Posted by WorldbyStorm in Economy, Irish Politics.trackback
…not necessarily the time to say anything about this evening’s news. But… some food for thought in the Judge’s comments.
He said [the then regulator] Mr Neary seemed to have limited recall and difficulty in recalling vital events, but he was satisfied he knew of the general situation.
He said he had “no doubt” he told Mr Drumm that he was anxious to have the matter resolved.
Both Mr Horan and Mr Neary “must have known” the bank intended lending to buy its shares and it seemed “incredible” that the regulator did not take advice as to the legality of the loans.
“It is incredible that red lights didn’t go off somewhere in the regulator’s office,” Judge Nolan said.
And:
“I am totally surprised the regulator did not give any warning to Anglo Irish Bank,” he said.
Not so surprising perhaps to many of us here.
The Cedar Lounge Revolution 
Isn’t that an extraordinary judicial precedent?
“The regulator didn’t regulate, therefore I should be given leniency.”
Law meet donkey.
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It’s… erm… unusual.
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I’m not really one for substituting personal punishment for the overthrow of a class but how many Irish banksters does that make that have been sent to jail?
That would be none, wouldn’t it. None banksters, Nigel.
Or is there a gulag in Donegal I don’t know about?
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Whoops!
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how many Irish banksters does that make that have been sent to jail?
That would be none, wouldn’t it
Have any anywhere?
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David Begg, General Secretary of ICTU was a member of the Board of Directors of the Central Bank and Chair of its Internal Audit Committee when the Central Bank Report (2007) was issued. Just months before the crash,the Report contained the following Statements:
Central Bank Report 2007 –Governor’s Report -John Hurley
“The Irish financial sector was, of course,
impacted like all others by these global
developments. Medium- to long-term funding
was not as readily available on wholesale
markets as had been the case. However,
Irish banks have negligible exposure to the
sub-prime sector and they remain relatively
healthy by the standard measures of capital,
profitability and asset quality. This has been
confirmed by the stress testing exercises we
have carried out with the banks.”
– – – – – – — — —
“Turning to the Bank’s own activities, a strong
focus on financial market issues was the
dominant feature in the second half of the
year. The institutional arrangements we
have in place, where the Central Bank and
Financial Regulator operate within the one
single organisational structure, enabled us to
meet the challenges we faced. “
All trade unionists should expect a statement from David Begg and from the Executive Council of ICTU on these matters.
Countless thousands are unemployed, have emigrated, have had pay and pensions cut and public services have been devastated due to the activities of privately owned banks which were under the supervision of the Central Bank and had been stress-tested by the Central Bank
NOTE AGAIN the following lines (above) from the 2007 Report of Central Bank:
“HOWEVER, IRISH BANKS HAVE NEGLIGIBLE EXPOSURE TO THE
SUB-PRIME SECTOR AND THEY REMAIN RELATIVELY HEALTHY BY THE STANDARD MEASURES OF CAPITAL, PROFITABILITY AND POFITABILITY AND ASSET QUALITY.
THIS HAS BEEN CONFIRMED BY THE STRESS TESTING EXERCISES WE HAVE CARRIED OUT WITH THE BANKS”.
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Bank Inquiry-David Begg, ICTU,Must Explain Role of Central Bank
David Begg, General Secretary of ICTU, was on the board of the Central Bank for 14 years up to mid-2010.
Before he became governor of the Central Bank, Professor Honohan in Economic and Social Review (Summer 2009) said:“Irish banking system had been, in effect, on a life-support system since September 2008.—-.Complacency resulted in the banks fuelling the late stage of an obvious construction bubble with massive foreign borrowing, leaving them exposed to solvency and liquidity risks which in past times would have been inconceivable–At the end of 2003, net indebtedness of Irish banks to the rest of the world was just 10 per cent of GDP. By early 2008 that had jumped to over 60 per cent”
The borrowing of 50% of Gross Domestic Product over 5 years by the covered banks is precisely what the Central Bank is tasked to prevent-grossly irresponsible borrowing which threatens financial stability.
As a result countless thousands have lost their jobs and savage austerity has been visited on the population including pay and pension cuts.
David Begg owes an explanation of the role of the Central Bank to Irish trade unionists who pay dues to their trade unions, who contribute to ICTU, which pays the general secretaries wages as general secretary of ICTU.
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[…] directed at the Financial Regulator for a most curious approach taken during the Anglo situation, as noted here and before more blame accrues to those in politics who established the framework within which the Regulator […]
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