Financial Regulator Says Anglo and Nationwide in Good Shape

Bailing out a dysfunctional bank

Here’s a note of a meeting held three days before the blanket bank guarantee. During this meeting, the financial regulator tells Cowen and Lenihan there’s no reason to believe Anglo and Irish Nationwide are insolvent.

A finance official speculates that combined losses could be 10.5 billion euros.

It seems they had no idea what they were dealing with.

Public Accounts Committee

19 thoughts on “Financial Regulator Says Anglo and Nationwide in Good Shape

  1. Tough titty Biffo.
    Ignorance is no defence under the law. It was Cowen and Lenihans responsibility to make sure they had all the appropriate information to hand, before taking decisions to bale out Anglo.
    It would appear on the face of it that there was a conspiracy among the mandarins to withhold information from Cowen and Lenihan. If this was the case let us see the Gardai arrest and charge those involved.

    It is time for reform and a clear-out in the top ranks of the Public Service. Reforms might include;
    The tenure of all positions above a certain grade should be limited to five years.
    Mandatory quota of 50% external appointments.
    An independent external agency to oversee all appointments.
    Exclusion of all candidates with any connection to politicians or political parties.
    A clear definition of the consequences of incompetence in the contract of employment.

    These are just a few ideas for reform to start the ball rolling.

  2. Can we put in the some of the same conditions for politicians?
    Maximum terms.
    No nepotism.
    Receipted expenses only.
    IQ tests essential.

  3. “Exclusion of all candidates with any connection to politicians or political parties.
    A clear definition of the consequences of incompetence in the contract of employment.”

    “No nepotism.” … “IQ tests essential”

    Under these conditions there would be nobody left in litte Ireland who could or would want to do the jobs in question.Then what?

  4. What is the problem folks? After all what’s a few Billion between friends, especially when it’s the little people picking up the bill? Not to worry the wife has a few bob. There is always the matter of the Swiss account, they are very discreet, none of this disclosure crap. Another bottle of bollie here Jeeves .

  5. Mairead..we do but they are a tiny minority.And I guess that is the core of the entire problem.And why its difficult to ever see a way out of it.

  6. Bock will have my balls in a sling – but just who was Eugene McCauge (chairman of Arthur Cox Solicitors) representing at this meeting?

  7. Mairéad, of course there are intelligent, capable people in Ireland. But, as I wrote above, would they WANT to do these jobs? Because they are intelligent, they would avoid politics like a snake pit, which it is basically.

    Thing is that Ireland has such a small population that the ruling classes stick together no matter what. They wouldn’t let in anyone who is not one of theirs in one way or other. It’s nepotism central. And they would put airheads/incapables into cushy positions lest they are bothered by someone who actually has brains and morals and might question their shenanigans.

    You need a certain personality to be a politician. Most good, intelligent people have a personality, full stop. And certainly not one which enables them to be a smooth operator and deal with said nepotism.

  8. Very sad, carrig, but a good dollop of truth in it.
    I was taking it from the point of view of having a complete clean out though, and starting again with intelligent, honest, capable people only.

  9. They were flying the green flag, just like moving vast sums of money between banks.
    As far as they are concerened they are Ireland, and all the lies and cheating is nothing more than them saving the country.
    Far better to destroy this country than for them ot tell the truth.
    maybe they are right, maybe they are Ireland, and they only matter?
    fuck it but I am sick of it all.

  10. Sad stuff. I wonder how many of these fine people had personally invested in the property market.

    Not that I would contradict you Bock but we had all these fine people in the one room at the same time, it made me think of your fine article on the wisdom of Paul Reynolds. Perhaps there is social purpose a rocket launcher could be put to.

  11. Well said Carrig & Mel drew.

    It should also be remembered that while the people running the show are increasingly being shown to be corrupt not all the little people are innocent victims. The corruption permeated all the way down as well and many are reaping what they had sown.

  12. Yes, builderfromhell, that’s democracy, sort of.
    We, the little people, as you put it, voted for the lad/ladess we know to represent our needs and aims and hopes. Regardless if lad/ladess is capable of representing anyone than themselves. We trust in the boy/girl next door. And we hope that they are doing their best for the country as such – as long as it doesn’t interfere with our local interest

    We, the little people, are too lazy to do something about it other than to complain – and eventually we vote for the one we know, because the lad/ladess is the only one to stand for election and anyway, didn’t they represent the county just nicely? Talk about parochial aka nepotism.

    I’m being sarcastic here.

    The alternative? Mairéd, you talked about a clean out. Well, some might say, it’s a bit Stalinistic: remove the old establishment and replace it with young blood.
    Such concepts usually end up with lots of blood…
    There is no way in a democracy to change the system as such. The only chance is to make changes within. But who does?

    It’s a tricky situation: How to get rid of the old corrupt classes without replacing them with decent people who get corrupted by power eventually, as history showed?

    There is no solution, as far as I know. But there might be slight changes by saying NO to the old.

    Sorry for being tangential. But the extent of corruption and blind stupidity and deceit, which surfaces in recent times, just makes me dizzy.

  13. Brian Cowen, Brian Lenihan and John Gormley are absolute scum.

    They knew what they were doing.

  14. While a total clear out may be desirable I accept it cannot be achieved overnight.
    I agree that we should impose restrictions on the career politicians, democracy gives us the opportunity to boot out the incompetent politicians. It is open to us all to show the current shower the door next time out.

    My point was however that the anonymous, unaccountable and undemocratic mandarins that have run the country into the crapper sadly remain bulletproof.
    Can anybody tell me how many high ranking public servants have ever been disciplined for incompetence?. It would appear a sideways promotion or golden handshake is the usual sanction .
    These people tend to be from the same gene pool with the right connections to political organisations, the knights or OD. There is no transparency regarding their appointments.They are symptomatic of the corruption in this country .

    The point has been made nothing can be done to remove this inner circle. I strongly disagree, it might not be easy, but if we continue to accept the culture of corrupt politics and bureaucracy we are fucked. Furthermore if we do nothing, its all we deserve.

  15. Something like ‘for evil to prosper all that’s required is for good men to do nothing’ I paraphrase.
    I hope we all establish clearly, in all media and by whatever means, what it is that we will not accept.
    Generate enough support for our opinions and vow to carefully observe our laws and we will recover.
    Thank you Bock for giving us the opportunity.

  16. Litfanjo — Thanks for that.

    I suppose I should repeat once again for those who can’t figure it out: anyone commenting here is asked to follow a few simple rules, one of which is to avoid using abusive languages against other commenters, including me. This is an absolute requirement. I don’t pay good money for web hosting so that some gobshite can shout abuse in my face like a drunk in a pub.

    Furthermore, nobody is forced to comment here. It’s entirely optional. If people don’t wish to respect the comments policy of this site, they need not expect to have their comments published until they apologise and retract.

    Likewise, if a person tries to circumvent this by using a different name, as has happened in this instance, they will not see their comments here ever again.

  17. all people with no exclusions to contribute to their own pensions no fixed pensions for anybody employed by the state, index linked only .all people on wages of 100grand plus to operate their own pension. no big lumps, payoffs.and if the minimum wage is good enough for society then it good enough for politicans to retire on

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