Feb 092009
 

You know this non-bank that our money has been used to rescue? Anglo-Irish. This zombie institution for which our government sequestered your money and mine to dig it out of a hole created by itself.

That’s right: Anglo-Irish, the conduit for dodgy builders’ money, a non-bank which plays no part in the greater Irish economy, and which could have been allowed to disappear without in any way damaging our country.

Yes. That zombie bank.

Well, as you no doubt know, the Irish government decided to rescue this toxic institution, and in the process has probably destabilised our country forever. Why? Because Anglo-Irish Bank pumps the money for the property developers, and the property developers fund Fianna Fáil, the party of government.

Now the questions start to emerge. We knew that Seán Fitzpatrick, the chairman of Anglo, had borrowed upwards of €100 million from his own bank, and we knew that he he hid these borrowings with the connivance of another non-bank, Irish Nationwide, who very kindly took over his loans whenever the books needed to be inspected, so that the shareholders wouldn’t find out what he was up to.

This, apparently, isn’t a crime, though it should be. You might be astounded, and enraged, to learn that it isn’t a crime for a bank’s director to hold huge loans from his own institution and to hide these loans from the bank’s shareholders.

Now, today, other questions are being asked, to which we don’t yet have the answers.

The questions are these:

Did Seán Fitzpatrick not simply have huge personal borrowings from his own bank, but did he also borrow €300 million, which he then handed out to ten of his associates?

And did these associates subsequently lodge €30 million each back into Anglo accounts as if this was new money from outside, when in fact it was only the bank’s own borrowed money coming back in?

UPDATE 19th February 2009

The answer is no. The ten people each bought Anglo shares with the money

And was this done for the purpose of inflating the bank’s value, to create the impression that it had large depositors, when these depositors did not exist?

UPDATE 19th February 2009

Not exactly. It artificially propped up the value of the bank directly through the purchase of the shares, and it also dug Seán Quinn out of a hole by secretly buying back 10% of the share purchase deal he was locked into in a CFD gamble gone wrong.

Let me remind you that our government has staked your future and mine, and the futures of our children on bailing out this toxic institution, Anglo-Irish, when they could have allowed it to sink. And the only reason they did so is because Anglo-Irish is the conduit of money from the builders to their political party, Fianna Fáil.

To put it simply: did our government decide that Fianna Fáil’s survival is more important than the survival of the country?

If these questions turn out to have some basis in reality, then our government has committed treason.

_________________

Also on Bock:

The Anglo-Irish Ten, Hiding Behind Client Confidentiality

Sean Fitzpatrick Tells Parliamentary Committee To Fuck Off

Letter To Brian Goggin, Bank of Ireland CEO

Anglo-Irish Bank, Brian Lenihan and the 7-Billion-Euro Fraud

Irish Life and Permanent €“ Fucking Bastard Criminal Scumbags

  19 Responses to “Did Anglo Irish Bank Fraudulently Inflate Its Deposit Base?”

Comments (19)
  1.  

    This would indeed seem to be the case , I just hope more of this story gets released quick before the two Bs get us into more shit creeks without a paddle. The names referred to by Abbot Of Iona in the Irelands Fiances thread and
    http://www.thepost.ie/post/pages/p/story.aspx-qqqt=NEWS-qqqs=news-qqqid=39392-qqqx=1.asp must be released asap

  2.  

    Anglo Irish Bank has been nationalised and is in the ownership of the state.

    Alan Dukes should demand that the Chariman Donal O’Connor release these names.

    There is nothing “commercially sensitive” about this, only politically sensitive.

    If Donal O’Connor refuses to release the names then Alan Dukes should resign or consider himself as guilty of Treason as Brian Cowen and Brian Lenihan.

  3.  

    I don’t understand how what he did is legal. When you have a customer and you are a banker, you have to make sure the person has repayment capacity. You must get proof of salary, other loans, etc. and then assets, that the bank will take off you if you cannot repay the loan. Real payment capacity. When they say legal, what they’re implying is that it is ok to do that. Did that man have 100 million in assets or near that? Who approved the loan/s? If it was legal why hide it? I hear he got a golden handshake and a huge pension also. I really don’t understand this country. The sooner FF are driven into the ground the better. I hope they feck up more just so that’ll be the end of them. That should n’t be hard for them. I’m glad they were elected last time in a way, just so they would reap what they sowed, though perhaps that’s a stupid thing to say.

  4.  

    http://galwaytent.blogspot.com/2009/01/sold-hole-in-ground-bought-by-taxpayers.html

    SOLD! Anglo Irish Bank Hole In Ground Bought By Taxpayers for €450 Million.

    Patriot BIFFO was sent another bag of chips from Seanie who told patriot Brian to add the salt and vinegar. Seanie was safely outside the jurisdiction in South Africa, perhaps investigating BEE schemes and direct flights to Bolivia.

    By nationalising Anglo Irish Bank the taxpayers have just bought a hole in the ground for €450,000,000. The former Ringsend glass recycling site where 300 workers were fired is now worth perhaps €45 million, or less. The exact value is a secret and even if Anglo Irish Bank published a value who would believe them?

    Is this Galway Tent directed bank-and-developer-rescue a legal theft of more than €400 million of taxpayer’s cash?

    The cross-contaminated(a) Dublin Developer’s Autocracy (DDDA) is a co-investor in the site along with the Becbay group of property developers. The Dublin Developer’s Autocracy also decides the planning permission and denied a conflict of interest, at a June 2008 statutory public event.

    Anglo Irish Bank provided €288 million for the site (Did Mr Quinn invest €288 million in Anglo?). One of the developers is obliged to pay seventeen percent interest (17%) on money borrowed from someone. Perhaps to someone with an interest in Bolivian airlines.

    The site has been excavated and is now literally a hole in the ground, possibly even below current sea level, yet somewhat higher than the scuttled Anglo Irish Bank.

    ___________
    (a) The site is in a contaminated Dublin City refuse dump situated Banana Republic style on Sandymount Strand and on the foreshore of Dublin Bay.

  5.  

    Excellent post, but I find myself giving in more and more to cynicism and despair in relation to what’s been happening. More specifically, I despair at what has happened to investigative journalism in this country. Instead of doggedly pulling at all the hanging threads that are there to be seen, journalists (generalism, I know) seem happy to chase after whatever lame-duck decoy is flung to them. If you were to rely on the papers/TV at the moment, you’d think that the event of the past week was that Brian Cowen revealed his genius by delivering an unscripted sermon from the mount. We are served up acres of verbatim reproductions, hagiography and hack punditry, and while all that clouds the foreground, the endgame is being played out elsewhere. I despair, I really, really do.

  6.  

    Treason indeed!
    When it is realised fully throughout the general population; ‘bloody streets’ may well be with us.
    But FF are OK now and you can be sure that they’ve stashed their share of the money.
    Bananas indeed!

  7.  

    Readers will remember Nick Leeson, the guy that broke Barings bank – Britain’s oldest investment bank.Barings went to the wall after Leeson incurred spectacular losses trading on the stock market. The Beak handed him a six year jail sentence in relation to above in 1995 but he was released because of a cancer scare in 1999. He wrote a book “Rogue Trader” whilst in the custody of the state and a film about his escapades under the same name was released.

    Leeson now lives in Galway. I spoke with him twice, he says his favorite joke about himself was that “he was the only man in history that wrote a cheque and the bank bounced.”
    The thousands of investors that lost their money might not find that joke funny…. But Leesons flippancy could be justified to the extent that he at least paid the price that society deemed appropriate for his crime, a crime incidentally, which would not have been a crime if his trading had been successful; he would have been one of “Masters of the Universe”. His first wife also divorced him while he was serving time.
    Likewise, the shower responsible for the Anglo Irish debacle should be jailed, starting with Fitzpatrick. But this being Ireland, they will all walk away with their index linked pension schemes intact – plus generous severance packages. However, I wouldn’t go along with the consensus that said bank should have been left sink.Granted, there are a number of property developers who are buddies with Fianna Fail involved. But as the government has repeatedly pointed out – is anyone listening? – there are thousands of ordinary investors also involved with Anglo
    Irish. These people cannot be thrown to the wolves to assuage public outrage.

  8.  

    Abdul

    The State could have both Anglo @ 20 Euro Cent.

    Full compensation at market price to the shareholders. The State cannot be responsible for the investment decisions of investors in Anglo or any other company.

    If the shareholders believe they have a case for compensatio greater than the market value they could pursue remedy in court.

  9.  

    Abdul — In order to avoid throwing the Anglo investors to the wolves, the government has mortgaged my children’s future. I feel sorry for the investors, but they were the ones involved in a bank everyone knew was dodgy — not me and not my children.

  10.  

    Abbot, – Pursuing the banks into court in this climate would be the equivalent of handing out speeding tickets at a Formula One race.

    Bock, – I take your point, but the vast majority of these “shareholders” and “investors” we read about are just regular people with a few grand in the bank, maybe even their live savings.

  11.  

    It’s very sad, but the alternative is that we all go down with them.

  12.  

    life savings, above

  13.  

    I know what you said. However, I can’t see how sinking the entire country into bankruptcy helps the problem.

  14.  

    Abdul,

    I don’t have the numbers but I think you are incorrect.

    I recall hearing that “Institutional” (including Quinn) investors hold 85%+ of Anglo.

    A remedy in court would not only mean suing the bank, but its directors, its auditors, its regulator and the Central Bank. The latter two for failure of oversight leading to financial loss.

    The former two for incompetence or complicity in producing financial statements which were know not to be true & fair.

  15.  

    Hey, here’s a very fucking angry thing. I keep asking everyone I know, if they have mortgages or loans or savings with Anglo Irish. So far, not one person. I’ve asked loads. But maybe that’s because I’m from a different demographic . So, accepting that there may well be some people who have savings in that puss bank, people in a different demographic to me, well here’s a thing, let’s take all these small depositors and assume an average of their deposits @ $10 K, and then let’s pretend there are 2,000 of them. Then, this fucking government can bail them all out with 20 million . Okay ? Small money, not billions, millions.
    And maybe I’m wrong by a multiple of 5 or 10, it’s still small money @ 100 -> 200 Millions.

    So, please, don’t let anyone hold you as an emotional hostage with these small depositors. The government knows everything about this bank. They have the records.

    Then, let the rest of the low life scumbag thieves who have “business” with Anglo twist slowly in our bitter recessionary wind, at the end of high Gallows outside Dail Eireann, and Seanie Fitzpatrick and his cabal too.

    Let there be no mistake, no dilution, no diminishment, no negation, no weasel words, no retreat or surrender on this one. This was theft . This is criminal . This is wrong.

  16.  

    It is estimated that at least 50,000 people are small depositors with Anglo. A high percentage of above run small firms and businesses, employing thousands of other people. If they go to the wall then thousands are thrown onto the dole queue.
    It would be great pleasure to see some of the heads of above bank being led from the courts with a copy of national newspaper over their skulls en route to Mountjoy. That’s a idea for a small business by the way, selling head covering for criminals as they are being led to the Paddy Wagon, which incidentally is described as a “mothers hearts” in Mexico -cause there is always room for one more…. Anyway, you could flog head covering outside courts, “we guarantee that your neighbours won’t recognize you”, – the business would be called “Incognito”. Ramble, ramble. Meantime, I don’t have money in Anglo, all my money is invested in Arthur Guinness’ merchant bank. Arthur was liquidated 250 years ago – and he’s still going strong.

  17.  

    Hey Abdul,

    You’re diminishing the corruption here, surely.

    Seriously, if there were 50 K depositers ( and let’s not haggle on the number), we’d sort of know them, some of them.

    I don’t know any, and don’t know anybody who does.

    Are you being held as an emotional hostage by Seanie and his mates ?

    And how much would it cost to bail these legit people out ?

  18.  

    “if these questions turn out to have some basis in reality, then our government has committed treason.”

    Well bock I think you have yer answer now.

    Love the blog keep it up

    SE

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