The Sweet Smell of Irish Banking Fraud

20 Nov

Behold the Cesspit: IMF mandarins Chopra the Chopper (left) and Mody the Mincer (right) eyeball the great Anglo Irish money machine.

So the IMF has finally touched down in Dublin. Nice to see that they are putting down a marker about the nature of austerity for the ordinary citizenry – Ajai Chopra and his chums have lodged themselves in the humble five star Merrion Hotel.

Surrender Without a Shot Fired

Biffo: Chokes on B for Bailout

Taoiseach Brian Cowen and Minister for Finance Brian Lenihan are slowly emerging from a daze of how-dare-you-say-it’s-a-bailout. Cowen bladders that there will be no loss of sovereignty for Ireland and that there is ‘no need for Ireland to be ashamed.’  Meanwhile, Lenihan plays the earnest bluffer and  waffles about an ‘aid package’ and a ‘contingency fund.’ Even more bizarrely, Green party leader John Gormley has proclaimed that the bailout ‘could be the making of this country’ ! !

The men who gave their lives for Irish independence in 1916 are doing much restless grave-turningThe Examiner has issued an excellent front page ‘Proclamation of ECB Dependence’.

Opening the Books to the ‘Germans’

Make no mistake, the ‘Germans’ mean business and they have pulled the deep pile rug from under the Irish government. It was extraordinary for the European Central Bank to actively issue negative media briefings about Ireland last weekend. EU commissioner Olli Rehn visited Ireland last week and was presented with the government’s own four year plan and an update from the Wonderland of rotten banks. Despite the positive spin at the time, he was so alarmed that he concluded that the keys should be confiscated before the Irish Government announced their budget on December 7th.

The Great Irish Banking Fraud

In the unregulated ‘wild west’ that is Ireland, the bankers are reckless cowboys who cannot be tamed. During the great Irish banking fraud, their lending growth dwarfed any of the other EU states. In 2007, with explosive lending into a property bubble, Anglo Irish Bank was the top performing bank in Europe and reported forty one consecutive six monthly periods of exceptional growth.  By 2009, Irish property imploded and losses at Anglo Irish Bank were the worst of any bank in the world and it will cost €34 billion to bailout. Latest estimates are for €16 billion for Bank of Ireland and €26 billion for AIB.

The bankers, however, continue to lie about their losses. The National Asset Management Agency (NAMA) has revealed that the bank executives recently provided misleading figures to the tune of €22.96 billion in the transfer of loans. The long running investigation into Anglo has also come up against a web of offshore accounts and a refusal by former staff to disclose passwords to protected documents.

Many of the kingpin bankers have now moved their own assets offshore.  Proceedings to recover an €8.5 million loan to David Drumm (the former Anglo chief executive) in the US have got off to a farcical start. The court appointed officer concluded that Anglo Irish Bank acted improperly and that Drumm should receive compensation from Anglo Irish Bank for loss of earnings and for other claims.

Now that the IMF is in town, a former member of their team has predicted that they will unveil deeper fraud and corruption in their investigation of the banks.  Dr Daniel Gross believes that they will expose the skeletons in the cupboards of the country’s banking system and adds that he believes the losses of €50 billion uncovered so far will be the tip of the iceberg.

Irish Cowboys Kidnap the ECB

Under Ransom: Jean Claude Trichet Gets Cornered by Irish Banking Gangsters

The revelations about the rotten core of Irish banks and the verdict from the bond markets have prompted to a run on deposits since September. The downgrading of Irish debt has resulted in a exodus of corporate deposits and €10 billion has flown out of Bank of Ireland with €13 billion out of AIB.

Personal deposits are also flying out of the Irish banks at an alarming rate and the Dutch Rabobank has reported a surge of new customers. To fill this hole in the Irish banks, the European Central Bank has injected a massive flow of cheap loans on a short term basis.

The total lent by the ECB to all European banks is €516 billion. Ireland is a mere 1.7 per cent of the eurozone income but the Irish banks have gobbled up an incredible €165 billion or 31 per cent of ECB short lending. In a stroke, the Irish bankers (with inside help from the government that they have long kidnapped) suckered John Claude Trichet and the ECB into the classic ‘too big to fail’ trap.

As well as the ECB, the private European banks also have huge outstanding loans with the Irish bank hucksters. The Germans are in deep for €34 billion, the Brits for €31 billion and the French for €15 billion – foreign lenders still have $170bn (£107bn) invested in Irish banks.

Little wonder that the ECB has jumped in to saddle this debt upon the Irish state rather than the dodgy banks. They want their money back and we will pay dearly for generations to come as this debt is heaped upon our existing loan mountain.

You Can Take Everything…But Save Our Corporate Tax Haven

How fitting that the only thing the Fianna Fail/Green government wants to preserve is our status as a corporate tax haven. The EU/IMF can have our public services, sell the valuable semi-states and cut or tax just about anything that is not corporate. Any change to our corporation tax rate, however, is ‘non-negotiable’.

The funny thing is, the only thing that the ‘Germans’ want (along with their money back, of course) is to raise the Irish corporation tax rate in line with our eurozone partners!

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