Dec 192008
 

There are two basket-case banks in Ireland. Anglo-Irish is one of them, and it should never have been bailed out by the first government guarantee, because it isn’t really a bank at all, but a highly-questionable investment vehicle for speculative property developers.

Now we discover that Seán Fitzpatrick, who resigned last night as Chairman of Anglo Irish Bank, had €87 million in loans from his own bank.

Eighty-seven million! In debt to his own bank! The Chairman!

It seems he had these loans for eight years, but managed to hide them from the shareholders by a simple but effective little trick. You see, every year, just before the books had to be opened to the shareholders, Seánie transferred the loans to another bank and they didn’t appear in the accounts of his own bank.

Wasn’t that handy?

Then, when the heat came off, he was able to transfer the loans back to Anglo-Irish, presumably on reasonably favourable terms. After all, when you’re the chairman, and former chief executive, I imagine you could cut a reasonable deal. Wouldn’t you think?

The extraordinary thing about it all is the number of people who didn’t seem to know that Seánie had this arrangement. For instance, the chief executive, who resigned today, didn’t know. And the Financial regulator, who oversees all Irish banking institutions, didn’t know. And of course, the shareholders obviously didn’t know what the hell was going on.

So. You might be wondering what other bank was so willing to help him with this little difficulty? Why, it’s none other than the second basket-case non-bank, Irish Nationwide, and you might remember me writing about those bozos HERE.

OK, boys and girls. Let me just remind you that these are the same people our government has guaranteed to the tune of €450 billion. That’s Billion, with a B. These are the people who can walk into government offices at midnight and secure a meeting with the leader of our country.

Isn’t it time we called a halt to all this?

_______________

UPDATE 20th Dec

I read in today’s papers that the government is going to inject €3 billion of my money and yours to take over this pit of scorpions and tapeworms we call Anglo-Irish Bank, and they’re going to kick out the useless bunch of scumsucking shleeveens masquerading as directors.

But hold on a minute.

It now turns out that the Financial Regulator knew all about the antics of these gobshites since last January — a full year — but did nothing about it until now, and never told the department of finance. So there you have it. Fitzpatrick was bouncing gigantic amounts of money from one bank to another. Enormous sums. €87 million, for God’s sake, sloshing around from one account to another, and nobody asked what the hell was going on. Furthermore, nobody asked if the other pampered, cosseted, smug arseholes on the board were doing the same thing, or for that matter if the directors of all the other banks are at it as well.

Regulation my arse.

It’s now time for the government to stop listening to these guys and start telling them how it’s going to be. If we, the taxpayers, are taking such a huge risk to bail out incompetent and crooked financial institutions, we need to be the ones calling the shots, and that means sacking every last one of the directors, all the senior management and taking them over.

And if they raise a howl of complaint, as they surely will, I have only one piece of advice: Fuck ’em!

____________________

UPDATE 23rd December 2008

The government injected €1.5 billion into Anglo-Irish and the bank’s share value collapsed. There’s a simple reason for this. Anglo-Irish has a loan book, the same as all banks, and a proportion of that loan book is taken up with bad, unrecoverable debts. In the case of Anglo, these could amount to as much as €30 billion, because as I told you already, this is not a real bank at all. Like Irish Nationwide, Anglo is only a mechanism to transfer speculative money for property developers, and nothing protects those loans except a few car-parks and a few bedraggled old housing estates across the country in places where nobody will ever buy them.

Therefore, injecting €1.5 billion into Anglo is the same as throwing it out the window of a speeding train, but less fun. It will be swallowed up by the losses.

Why is the government trying to bail out this disaster of a non-bank? Simple. This non-bank bankrolls the developers, and the developers are the ones who grease Fianna Fáil’s palm. Therefore, the government is using public money — vast amounts of it — to prop up Fianna Fáil.

Treason in any man’s language.

  31 Responses to “Rival Bank Helps Anglo-Irish Chairman To Hide Huge Personal Debts”

Comments (31)
  1.  

    So – presumably when my mates were denied a mortgage by Irish Nationwide last year it was to do with the fact that they only wanted to borrow €180,000 – not €87,000,000?

    Aha -all makes sense now.

  2.  

    bock how would you suggest we call a halt to this ?

  3.  

    Eva — Either they weren’t borrowing enough, or Irish Nationwide didn’t have the money to lend them because Seán had it all.

    Norma — We’ll just throw that one open to the floor, maybe. See what people think.

  4.  

    How about a hugely expensive tribunal that could drag on for years. Maybe it could be run primarily be a few other boys from the handshake club. Then, 10 years and a few hundred million euros later we could publish the tribunal’s findings and store them in a in a toilet cubical in one of the basement levels of Leinster House. Perhaps put an ‘Out Of Order’ sign on the door too.
    Does anyone know if it’s been tried before?

  5.  

    Funny when you think about it, but with every day that passes this Government begins to grow more and more like the outgoing Republican administration in the US.

    In the decade that it has been in power, it has allowed cronyism and lack of accountability to permeate not just the public and semi-state sectors, but the upper echelons of banking and development sectors too.

    Governance in Ireland, it seems, has become about a glad-handing, look-the-other-way, placate the public and hope they forget mentality.

    Fianna Fail need and thoroughly deserve a Dail term or two in opposition, if only to piss off and think about what they’ve done.

  6.  

    Meet you on the barricades. I’ll bring the Molotov cocktails. You know the routine, though last time out we was more bendy and could run faster. Anarchy? Anyone? anyone ?

  7.  

    can someone tell me on the facts that we know at the moment what exactly did mr Fitzpatrick do wrong, aside from not telling shareholders that he had the loans, which I also fail to understand. If a director takes loans from his company isn’t that a way of saying look how much confidence I have in this bank, I’m doing huge business with them.

    He might have had favourable terms with the bank but that has not been revealed as of yet, so we cannot assume that, so what we have right now at which everyone is being so uterly appalled is a director of a company taking loans from a company whose business it is to give loans, full stop and yes conceded not report it to the shareholders but is that why he resigned because it wasn’t revealed to the shareholders, is that it, and if he didn’t reveal it, what difference exactly does that make, Please explain as I think we need to not just bananas and and have a huge outcry etc.. before knowing exactly about what we are crying out.

  8.  

    The Law: I’m not certain but I’d assume that a company employee loaning that much money to himself is a breach of integrity policy / conflict of interest. I doubt he was subjected to the same financial audit that you or I would be if we required a large loan.

  9.  

    No point in getting too upset. This country is run by gangsters for gangsters. Limerick gives two seats to FF consistently. Go figure! We get exactly what we deserve. Its all over. We are bankrupt. The difference is there is nowhere to go this time. I worry about my kids in this banana republic.

  10.  

    His loans also accounted for 35% of Anglo-Irish Bank’s capitalisation. Added to other director loans the figure rises to around 60%.
    If he decided to file for bankruptcy and didn’t pay back his loan, the Irish state will pay it for him.

  11.  

    Maybe they could give him a job in Brussels?
    I worked in a financial institution for a few years until I escaped, and you weren’t supposed to ask questions if someone important wanted something done, even if contrary to the rules. There are a lot of eejits in jobs that a)don’t know the rules b)don’t bother to find out about the rules and c)disregard them for friends and powerful people. Once I was asked to lodge cheques for a special ‘Someone’ about town even though they were not made payable to him. I was told to lodge them and be quiet, but I didn’t do it. I took them off the ‘customer’ I made a manager sign off on it as I didn’t want to be responsible for breaking the law! Of course they were lodged, but they weren’t too keen signing off. It went down very well I’m sure with management. Apparently what Sean Fitzpatrick was doing was legal though, so I don’t know what was going on. Were they his own personal loans? A lot of financial ‘consultants’ where I worked were well known hurlers and rugby players – who would’ve thought ball skills would train your brain to be good with figures (I left as I was rubbish at hurling )! Go figure that one – jobs for the boys. That’s why we’re in a mess in this country promoting thickos cos they’re friends and nepotism.

  12.  

    Mr Lenihan:

    The resignation would not interrupt the progress on recapitalising Anglo Irish Bank.

    Well, that’s alright then!

  13.  

    Is it possible he used the money to by shares in his own bank, you know the ones now worth 20 cent each.
    even he could not have been that stupid could he?
    If he was, then even this government couldn’t give them money.

    I cant remember, but was it his son who sent the email saying they were now one of the safest banks thank to the government bail out.

  14.  

    sorry just read it was his pals son, from that other fine establishment, that sent it.

  15.  

    Hi All (my first post !),

    A few questions / points: –

    1. Doesn’t company LAW require transactions with directors to be recorded in the annual accounts?

    Therefore should the accounts not show the transaction even if the loan(s) was repaid prior to audit – afterall the transactions occurred.

    2. Mr. Fitzpatricks statement states “One of the loans was a joint loan with Lar Bradshaw and I would like to emphasise that he had no knowledge of the temporary transfer of this loan” (source:-http://www.angloirishbank.com/Media-Centre/Press_Releases/Statement_from_Mr_Sean_FitzPatrick.html)

    Just how can one person repay a loan to one bank and then borrow from another without the consent and signature of the second borrower??

    Even if the loans were taken out by an entity in which they are both directors – surely you would assume that the auditors for that entity would (and should) have seen the transactions and acted in an appropriate manner.

    3. What is the ODCE’s position?????????

  16.  

    Elle

    “Apparently what Sean Fitzpatrick was doing was legal……..”

    Says who? – Sean Fitzpatrick????

  17.  

    It’s like when Bertie and the FFers was explaining away the ‘digouts’. They all said he did nothing wrong as well…

  18.  

    bock you asked “should we call a halt to all this” can’t see that you recieved any replies to that question ?
    other than “tribunals” and/or “molotovs”

  19.  

    Well really ENDA KENNY. Oh God help us.

  20.  

    What can anyone do, besides gnash and spit teeth? The old boys club will always look after each other, and the rest of us are consigned to the hind tit. Even if you try to vote the bastards out of office, their pals find them a nice seat-warmer in the Senate or on the board of a semi-state until the electorate reverts to its usual torpor and they can sneak back into office.

  21.  

    Would any one of us be prepared to take over the Parliament building and stage a sit in until they fucked off like they did in Bangkok?
    I don’t think so. They have a new government this week.

  22.  

    Irish Indo has stated
    “Sean Fitzpatrick transfered some of his loans from Ango Irish Bank to Irish Nationwide. He would then transfer the loans back to Anglo at a later date”.

    Can somebody with a banking background educate me as to how you “transfer” a loan from one institution to another?

  23.  

    Cunts, stunning cunts, every one of them.

    We’ll be the next Iceland and those fuckers Libertas and the Murdoch Press will love every minute of it as soon as our celtic cub/mad katlik fundamentalists copperfasten this country s doom by having the Sire Ganley/Sinn few-in/ Dana + Justin the turkeys vote for christmas as their British masters tell them.

    And we’re left with the most pathetic shower of politicians imaginabe who, even at ths remove, still trust these fucking bankers ???? All of the same brood the lot of them.

  24.  

    My suggestion is quite simple and cost effective..
    It involves a courtyard ,some blindfolds and a firing squad.
    Might seem a bit harsh but hey,im not in a cuddly forgiving mood today
    If Anglo Irish bank and Irish Nationwide were at this then the lot of them were up to similar dodgy stuff..
    We’re gonna need more bullets..

  25.  

    Vote swp in the local elections. Vote independent in the European elections. Vote for anyone other than FF/Green/PD.

  26.  

    I think I can say with absolute certainty that I’ve never voted FF in my life. I often vote for a candidate, not a party. It’s people following a party (for life), as if it was a football team, that has this country the way it is.

  27.  

    The Law — This is me acknowledging your comment to stop you bending my ear at every opportunity about being ignored.

    Now, as to the substance of your comment: bollocks!

    Most people — Thank you for your comments. Keep cursing those bank bastards. I can’t be bothered replying individually today because I’m going for a pint and I haven’t time to reply …

    … except to Nora —

    No point voting for a candidate in our party system, since they have no freedom of independent thought anyway. As Charlie McCreevy once complained, he might as well send his shoes to the Dáil.

  28.  

    Bock, in further reference to BJJs post about the loan being a joint one with Lar Bradshaw. Check out another joint transaction Fitzpatrick had with Bradshaw.
    http://www.independent.ie/national-news/bank-chiefs-facing-share-deals-probe-1488613.html

    By Ailish O’Hora Business News Editor

    Friday October 03 2008

    “The Irish Stock Exchange is investigating a number of share dealings in Anglo Irish Bank, including those by the bank chairman Sean FitzPatrick and fellow director Lar Bradshaw, in the run-up to the Government’s decision to introduce its €400bn bailout package.

    The shares were bought over a week ago, after talks had opened between banks, the Financial Regulator, the Government and the Central Bank about the state of the banking system, but before the bailout was agreed.

    The transactions earned Mr Fitzpatrick a paper profit of €326,000 and Mr Bradshaw a paper profit of €79,000.”

    Words fail me, but the courtyard and blindfold option looks better by the minute.

  29.  

    I voted for an independent once and he brought down the Gov’t. Enough people gave him first preference votes, even if they voted party next. If enough people voted non-party it could upset the apple cart considerably.

    I don’t see any real change happening here unless FF and FG are deprived of the reins.

  30.  

    Sean Fitzpatrick is one of Cowen’s closest buddies – along with developer Sean Mulryan. Sean Quinn is a big FF backer as well as an Anglo investor. Some guy from Trinity said it yesterday and the logic is simple ..”Anglo Irish funds developers, and developers fund FF”. The sad fact is we are run by an unscrupulous greedy mafia who have now fucked completely an entire generation. An educated generation with no work at home, and nowhere to emigrate. This crisis will make the eighties seem like the halcyon days. I’ll back OrganDonor’s firing squad. That should provide a few days employment for some handy marksmen.

  31.  

    I believe the regulator costs €42M a year to run. It is the plaything of the banks, and a waste of money. It’s not capable of regulating a flashlight in a henhouse. What a farce! They should all go home and we could better spend €42M on essential services instead. A change of gevernment would just put another policical apointee in place and the game would go on! The solution to this requires more than an election – it requires a woule new way of doing things in this country. While we’re at it, the Competition Authority might go the same way. Another waste of money.

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