All of a sudden, Lenihan is open to the idea of closing Anglo?
Sorry. Hold on a minute. How recently was he telling us that we’d have to produce €70 billion up front?
Oh wait. Now I remember. It was the 30th March. Less than a month ago Lenihan told us the sky would fall in if we allowed Seanie’s filthy edifice to collapse. Here’s exactly what he told the Dáil:
Winding up the bank is not and has never been a viable option. As the bank’s new management and board have estimated, an immediate wind up would lead to a fire sale of assets resulting in a permanent additional and unnecessary loss of upwards of €30 billion. In addition, the State would have to provide, immediately and up-front, the large sum of €70 billion to meet the deposits, bondholders and liabilities due to the Eurosystem.
Following that, the scare tactics began and we had a troop of zombies telling us what a disaster it would be to close Anglo.
Éamon Ryan, the world’s stupidest minister, solemnly informed the nation that we’d be kicked out of the Eurozone if we tried to wind it up.
Here’s what the fool said on Saturday View:
It would be so nice if we could say we’ll let it go and that will be the end of that. The reality is … and that’s kind of Fine Gael’s position and what Labour seems to be saying. There are .. That means that we have to go and effectively say to the European Central Bank, who has a lot of money in deposit in Anglo, and say sorry we can’t pay you back. Now the European Central Bank, it hasn’t allowed a bank fail across Europe. So we would probably then have to leave the Euro. Now the risk of that, in terms of the tens of thousands of jobs that could leave this country because they’d say well Ireland is a riskier country to do business in, we don’t really want to do business there. That is what you’re talking about. So, it’s not easy, it’s not palatable but that’s the choice you’re faced with.
North Dublin TD, Darragh O’Brien, who once worked as a financial services spiv, parrotted the same mantra. Not a viable option.
Both of these men sneered at Brian Lucey, as did Alan Dukes, who is not a fool, when Lucey set out a detailed strategy for closing Anglo without costing the taxpayer an even greater fortune.
According to Lenihan in his Dáil speech,
… a longer term wind down is not in the taxpayers’ interest. The new management has provided me with figures, assessed by independent financial advisers, indicating that in addition to the capital losses that would be sustained, a long-term wind down of the bank over ten years could expose the State to funding obligations approaching €30 billion.
Dukes at least had the integrity to admit that there was no obvious limit to the amount of funds we’d have to pump into Anglo if we wanted to keep it alive.
I have been saying ever since that it was all lies, and now, guess what? The people who said Anglo could be closed weren’t such nutcases after all.
How did everything turn around in less than a month?
Would it have anything to do with the fact that Greece is going down the toilet, pulling us with it, and the German money people don’t give a flying shit what dirty little secrets about politicians are hiding inside the Anglo filing cabinets, or scrawled on the back of Fingleton’s cigarette boxes?
Maybe someone told him it wasn’t on to be spending as much saving Fitz’s scam as it cost to bail out the entire Greek economy.
Previously on Bock: