Banks & Finance

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Mad professors and Brian Lenihan corners

August 19, 2011 in Banks & Finance, Government, The State by Anthony | 1 comment

David Vines, Professor of economics at Oxford university, was on Today with Pat Kenny expanding on his article published in the Financial Times and Irish Times.

According to the good professor all is just fine and dandy in Ireland.

He accused the rating agencies of lazy thinking and being asleep at the wheel.

He accused listeners who criticised him as people who stand back and let things go wrong around them.

He describes as extraordinary the great expansion in Ireland in the late 90s and early 2000s.

He seems to be completely ignorant of the fact that that ‘great expansion’ was nothing more than a mafia pyramid scheme set up and operated by a cartel of politicians, bankers and developers none of whom have been brought to account.

He believes that Ireland will continue to expand and grow becoming ever more competitive despite the ongoing global crisis and, according to the professor, the Irish banking crisis is over.

I stand with admiration at the sorting out that was done in the recapitalisation of the banks in March/April.

I must have been out buying my cornflakes when that happened.

The professor’s article and interviews caused a wave of insane optimism throughout the ‘we’ve turned a corner’ morons in the political and banking sectors.

But the professor revealed his total ignorance of what’s really going on in our glorious banana republic when he was asked:

And are we over the worst of the banking debacle?

I’m not someone who has as close knowledge as others about Irish banks but it’s my belief from what I know that it’s now soldiering on now that that very important separating of the good and the bad happened in March/April.

Oh, right. He’s not aware that the Irish banking system is rotten to the core, that the Irish financial sector in general is infested with ruthless vermin who are facilitated and supported by a so called regulatory system set up by a deeply corrupt political system.

He’s unaware of the fact that not a single banking institution or official has ever been prosecuted for the countless thefts and frauds carried out over decades against defenceless Irish citizens.

So, just another Brian Lenihan corner then.

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New white-collar crime legislation

August 9, 2011 in Banks & Finance, Government by Anthony | No comments

Legislation aimed at strengthening Garda powers when investigating white-collar crime and legally protecting those who turn whistleblower comes into operation today.

Key provisions in the new laws seek to bolster the hand of gardaí when a witness is unwilling to attend Garda interviews or supply information like financial records. Such uncooperative behaviour can seriously hamper or derail the progress of an investigation (Irish Times).

This new legislation is obviously in response to the current investigation into Anglo Irish Bank and other financial institutions.

My first reaction?

Stand by for an announcement from an apparently disappointed minister telling us that, unfortunately, the new law cannot be applied retrospectively.

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The times they are a changing

August 6, 2011 in Banks & Finance by Anthony | 1 comment

Both India and China have scolded the American government for not keeping control of its finances.

Here’s what China’s official Xinhua news agency had to say

The U.S. government has to come to terms with the painful fact that the good old days when it could just borrow its way out of messes of its own making are finally gone.

We certainly live in interesting times.

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‘Democracy now’ protester brought to justice

July 25, 2011 in Banks & Finance, Government, The State by Anthony | 1 comment

I see the demonstrator who blocked former Government minister Mary Hanafin’s state car and shouted ‘Democracy now’ has been fined €150.

So, about eight months from ‘crime’ to justice. State law enforcement agencies like the police and courts working smoothly to ensure this ‘threat to the state’ was dealt with quickly and efficiently.

Meanwhile, those who actually destroyed the state are still walking around, enjoying the high life on bloated pensions and golden pay offs.

Apparently these vermin can’t be touched because of something to do with complexity and mounds of documents.

And what about former minister Hanafin, a member of the most corrupt political party in the country, the party principally responsible for allowing the vermin to destroy our country.

Well, she’s enjoying a lifetime guarantee of financial security partly paid for by the demonstrator who was hauled before the courts for demanding democracy.

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Ireland and Iceland? – a big difference

June 13, 2011 in Banks & Finance, Government by Anthony | 1 comment

There is a long running joke that tells us the only difference between Ireland and Iceland is one letter and six months.

Well, judging from two headlines in last Saturday’s Irish Times there is now a significant difference between the two countries.

Here are the headlines with some quotes from each article.

Banks’ dependence on ECB funding continues to fall

At the end of May, the banks’ total borrowings from the Central Bank in Ireland and the ECB stood at €156 billion, down from €160 billion in April.

The gradual loss of deposits at the Irish banks over the past year has led to a surge in borrowing from the ECB which reached a peak last November, when banks here were in receipt of €136.4 billion in funding.

The dramatic rise in Irish financial institutions’ dependence on ECB funding, at a time when other countries were reducing their reliance, is believed to have been one of the key triggers behind the IMF-EU bailout.

Iceland makes successful return to bond markets

Iceland returned to international debt markets for the first time since its banking meltdown more than two years ago as investors offered to buy twice the amount the government offered in dollar-denominated bonds.

Iceland, which averted a sovereign default by refusing to bail out bondholders when its banks failed in October 2008, will enjoy economic growth of 2.2 per cent this year and 2.9 per cent in 2012 as its budget deficit narrows to 1.4 per cent of gross domestic product, according to the Organisation for Economic Co-operation and Development.

The island’s approach to resurrecting itself from financial ruin has won the praise of Nobel laureate Paul Krugman, who says Iceland is now better off than euro member Ireland.

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Central Bank’s secrecy could damage citizens interests

June 1, 2011 in Banks & Finance, Consumer interest, Regulatory Agencies by Anthony | No comments

The following is an update on the matter of the Central Bank’s refusal to disclose even the most basic information regarding the latest scams in the Irish banking sector.

Those scams were:

Banks had charged thousands of homeowners the wrong interest rates on their mortgages.

Banks had misled customers with money in deposit accounts by promoting term and interest rates that were later changed once people signed up for the accounts.

Banks had short-changed thousands of customers on (other) interest rates.

The so called Financial Regulator (The Central Bank) is refusing to disclose even the most basic information regarding these scams.

This type of state secrecy can have potentially very serious consequences for citizens who may have dealings with these institutions.

As advised by an official in the Public Contacts Unit of the Central Bank I wrote to the bank requesting the following information.

Is it official policy not to name financial institutions that are guilty of such activities?

Is the policy in writing, and if so, where can it be located?

If the policy is not in writing where and by whom did it originate and how is it communicated to Central Bank staff?

The Central Bank replied:

Due to the confidentiality requirements imposed by domestic and EU legislation which provides for confidentiality of information relating to ongoing supervision and limits disclosure to circumstances specifically provided for in the Central Bank Act 1942(as amended) we are prohibited from releasing supervisory information regarding any institution.

I would draw you attention in particular to Section 33AKof the Central Bank Act 1942 (as amended).

Yours sincerely

My response;

Dear…

I will give you the benefit of doubt and assume you are an intelligent person, a benefit you clearly do not extend to me judging from the content of your email.

You will be aware that Irish banks and other financial institutions have been plundering customers and state accounts for many decades with complete impunity.

Despite this fact not a single financial institution or official has ever been charged with a crime since the establishment of our state in 1922.

This can only mean that Irish financial institutions are among the most honest in the history of the world or financial regulation in Ireland is not seen as an integral part of democratic accountability as it is in real democracies.

A person with even a smidgeon of intelligence can see that the latter is the case.

Your organisation is refusing to name the institutions, the number of customers or the level of funds involved in this latest fraud on Irish citizens.

No other country in the world, not even the most corrupt banana republic, would refuse such basic information to its citizens.

Let me be blunt, your organisation is, effectively, protecting the thieving vermin that infest the Irish financial sector at the expense of Irish citizens.

I look forward to the day, hopefully very soon, when the people who make and enforce such Soviet style secrecy laws are stripped of their power and influence.

I have no doubt whatsoever that the great majority of ordinary Irish citizens are of the same view.

Yours sincerely
Anthony Sheridan

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Thieving banks still enjoy full state protection

May 28, 2011 in Banks & Finance, Regulatory Agencies, The State by Anthony | No comments

Since the economy collapsed in 2008, politicians, the Financial Regulator and various other government authorities have been telling the Irish people that the days when financial institutions could rob customers without fear of prosecution were over.

From now on, they said, the law will be enforced. Stringent new laws would ensure that such criminal activities would never again occur, that Irish citizens could rest easy in their beds in the knowledge that the state and its enforcement agencies were protecting them.

Of course, all the talk was nothing more than the usual tissue of lies we have come to expect from those who claim to work in the best interest of the citizens of Ireland.

The following scams were reported in the media last week (Irish Independent).

Banks had charged thousands of homeowners the wrong interest rates on their mortgages.

Banks had misled customers with money in deposit accounts by promoting term and interest rates that were later changed once people signed up for the accounts.

Banks had short-changed thousands of customers on (other) interest rates.

It’s at this point Irish citizens would expect to see the many promises come to fruition, that they would expect to see justice done, to see transparency and accountability.

Here’s what they got:

The Central Bank, the so called Financial Regulator, refused to name the financial institutions involved, refused to specify the number of customers involved and refused to disclose the level of funds involved.

This absolute refusal to disclose even the most basic information is of great benefit to the thieving banks and is, potentially, very destructive for Irish citizens.

A spokesman for the Central Bank arrogantly dismissed all queries by declaring: It is not the practice of the Central Bank to name and shame.

I rang the Central Bank and spoke to an official in the hilariously named Public Contacts Unit. I wanted to know why such basic information was being kept secret from the public.

Because it would not be in the public interest and it is a corporate or private matter between the Central Bank and the companies that they regulate.

Ultimately, what happened was that these people were refunded so, this might sound a bit stupid, but the fact that these people were compensated and corrections were made to their accounts the wrongdoing as such has been rectified and catered for and the acts themselves have stopped.

After picking myself up off the floor and gaining control of my hysterical laughter I asked the obvious question: How could the keeping secret of the names of the thieving bankers be in the public interest?

He replied:

Well, I’d like to withdraw that, it may not be factually correct.

This official was unable/unwilling to provide me with any further answers and ‘helpfully’ gave me an email address (of his own unit as it turned out) where I could follow up on my queries.

To be continued…

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White collar crime does not (officially) exist in corrupt states.

May 12, 2011 in Banks & Finance, Corporate, Regulatory Agencies by Anthony | 4 comments

Mr. Justice Peter Kelly was probably in his chambers going over the application from the Office of the Director of Corporate Enforcement (ODCE) for a six month extension to the investigation into Anglo Irish Bank when the truth suddenly dawned on him.

What the hell is going on, he probably thought, this is the 6th application for an extension to this investigation and feck all has happened.

And what about all those other cases that I and other judges have sent to the prosecution authorities with strong evidence of criminal wrongdoing, sometimes with outright admissions of guilt and nothing, absolutely nothing has happened?

Welcome, Justice Kelly, to Public Inquiry. Allow me to explain what’s going on.

In functional democracies serious allegations of white collar crime similar to those made against Anglo Irish Bank are dealt with immediately by the police and courts.

They are not side-lined off into decade’s long tribunals, handed over to virtually powerless agencies like the ODCE or those involved given the option of answering a few polite questions before a completely powerless government committee.

In dysfunctional democracies like Ireland allegations and suspicions of white collar crime are permanently parked, delayed until they become historical or, in many cases, simply ignored.

The most effective strategy, whether intentional or not, of protecting white collar criminals is delay and it is obvious that this is what is happening in the Anglo Irish Bank case. It is this strategy that has so upset Judge Kelly.

Another very effective strategy is constant but never acted upon assurances that action is being taken to make sure this kind of thing never happens again.

That’s why when I first read about the latest delay in the Anglo case I thought to myself – it won’t be long before some state agency issues a statement assuring everybody that action is being taken.

And sure enough, the very next day, the Financial Regulator issued a statement warning banks that Big Brother is watching, that from now on there was going to be very close supervision of banking activities.

I have been listening to such official drivel since the early 1980s.

How, you may well ask, was the FR able to react so quickly? Well, it’s simple.

The latest ‘get tough’ warning was actually issued last March and, probably, to reassure Judge Kelly and help ODCE get their extension, the same mush was regurgitated.

The bottom line is simple; white collar crime does not (officially) exist in corrupt states.

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Banking system fixed?

May 11, 2011 in Banks & Finance, Government by Anthony | 1 comment

We’re eight weeks in government, we’ve fixed the banking system.

Minister for Education
The Week in Politics

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Is that a Fine Gael or a Fianna Fail corner?

April 7, 2011 in Banks & Finance, Government by Anthony | 1 comment

The government reaction to the latest bank bail out tells us that the Fine Gael/Labour government is now firmly on the same road as the previous government, a road with many, many corners.

The Financial Measures Programme was already paying dividends across a range of areas said Minister for Finance, Michael Noonan.

In other words, don’t worry folks, we’ve turned a corner, all will be well.

Is that a brand new Fine Gael corner I wonder or perhaps it’s a corner left behind by Brian Lenihan.

Ah yes, Brian Lenihan, he must be feeling nostalgic for all those corners he so enjoyed turning before becoming completely moribund on the backbenches.

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