Bondholder’s Identity Revealed

Chelsea boss threatens legal action against Irish government

Well, chuckled Pat Kenny, as his guests speculated on the identity of the mysterious bondholders, we can leave the Chechen Mafia to one side.

He was rightt.

It’s the Russian Mafia.

It now turns out that one bondholder of Irish Nationwide is Mr Roman Abramovich, billionaire owner of Chelsea FC.

Irish Nationwide, I might remind you, is not a bank but a building society, and yet is receiving €5 billion of your money to make sure that its bondholders don’t suffer thanks to the greed of Fingers Fingleton.

Now we learn that Abramovich is threatening to take legal action against Ireland if the government tries to make subordinated bondholders carry some of the losses of the collapse.  Subordinated bondholders, I should add, are people who took a higher risk in the hope of a higher return.   To put it another way, these are people who gambled on losing their money.  Therefore, even if the government forces Abramovich to take a loss, he will still get back some of his bet, thanks to you, the taxpayer.

As I’ve said before, there was no need to bail out the investors in Irish Nationwide or Anglo-Irish Bank.  It was a scam and a fraud.

As the December budget approaches, we face savage tax increases, and cuts in services to the old, the sick, the poor and the weak.

How do you feel about having less money in your pocket, longer and longer waiting times in A&E and potholed roads, to make sure Roman Abramovich and his pals in the Russian mob don’t lose out on their gamble?

Here’s an EU report on winding up Danish banks.  It states that burden-sharing is ensured by excluding shareholders and subordinated debt holders of the failed bank from any benefit from the aid.  It also confirms that this is in line with the Commissions guidelines.

So.  If it’s acceptable for the Danes to stiff the subordinated bondholders, why would it be wrong for us to do so?

28 thoughts on “Bondholder’s Identity Revealed

  1. Should be an interesting test of Ireland’s (the government’s) metal if he does decide to go to the courts. 4th richest man in Russia, can afford to spend $47,221 on lunch for him and 6 mates, plus he probably has a few shady pals in the shadows over here!

    As i understand it, Nationwide would need to be shut down to close any potential legal loopholes re defaulting on subordinated debt. Will another corner need to be turned – one where we hear that lower 2 tier bonds are suddenly safe again?

  2. 13% interest is what these subordinated bondholders are getting from Nationwide. The bonds were issued in August 2009. Bank of Ireland will give 1% or thereabouts to any Paddy with about €5000 to spare.
    But on behalf of Fingers Fingleton, Paddy will pay 13% to Abramovich?
    It seems a very high , very high, very very high percentage. I wonder was there another element to this transaction?. Could there have been a little commission paid offshore? A few shares transferred to sweeten the deal.? Was there a lifetime Stamford bridge seat thrown in? I know, I know, who the fuck would want to watch Chelsea?

    So Abramovich and others want 13% plus a guarantee of money back or I will shoot you. And his friends have real guns, not pea shooters.
    Ever wonder why this guy is a billionaire and why Ireland is fucked.

  3. Wouldn’t you love if a minister told him to get stuffed. Sue away, he’s getting nothing. He took a risk, the risk didn’t pay off. But that would take balls. Fucking greed knows no bounds.

    I was once at a meeting where the CIO or CFO or UFO or whatever he was told us “there’s a trillion dollars to be made in this area. How much of a trillion dollars don’t you want? Personally I want it all”. In his best southern drawl.
    I was taking the piss for the day.. “how much of a trillion dollars don’t you want lads, greed is good, greed is good my friends’.

    “How do you feel about having less money in your pocket, longer and longer waiting times in A&E and potholed roads, to make sure Roman Abramovich and his pals in the Russian mob don’t lose out on their gamble?” Not very fucking good Bock.. not good at all.

  4. On the contrary. Abramovich will get some of his money. His complaint is that he might not get it all.

    If he had invested in a Danish failed bank, he’d be getting nothing.

    Why are we paying the likes of him anything at all?

  5. “On the contrary. Abramovich will get some of his money. His complaint is that he might not get it all.”
    Brassed neck is all I’ll say.. and well who said Russians don’t have a sense of humour. Cause he’s having a fucking laugh at us.

  6. “Why are we paying the likes of him anything at all?” Very good question Bock.
    Why? Bcause we’re not Danish. The difference is we’re Irish.

  7. Perhaps the difference between the way Denmark handled its crisis and the way we handled ours would be down to the fact that Denmark isn’t in the eurozone ?

  8. dermotmoconnor

    Not sure about that.

    Debt Jubilees were a method of reset in I think Babylonia (I didn’t read your link but will).

    It occurred on the event of the death of the ruler. It was a method of ensuring conservative lending.

    So everybody knew that on the death all debts were forgiven.

    Knowing this, those lending knew that there would be no moral hazard. That is, they knew that not only would they not be bailed out, they were guaranteed that all of their loans would be written to zero on the death of the ruler.

    That I think would inform their lending practices. They would have been very cautious.

    In today’s world the people who borrowed (let’s stick to developers here) would end up having all of their liabilities written to zero while maintaining possession of whatever property they had acquired during the boom.

    Which leaves us with empty bank vaults and the developers with all the property.

  9. Just for opening his gob and being an aggressive cheeky cunt he should be told fuck off to the back of the queue, cunt, give him fuck all, I’d be keeping my gob shut if I was him

  10. so much for been told hat the bond holders were irish pension, and other banks.
    if it now seems they are wealthy individuals, would some of them be Irish are we bailing out the very people who got us into this mess?
    are FF only holding on because it knows, when they are replaced and the the truth gets out it will be too late to do anything about it.
    Could this new four year plan by FF be just a plan to tie the hands of the next government.
    this stinks to high heaven I believe we are been sold a pup.
    this government is selling the whole country to save their friends.

  11. F*ck him,he has more than enough.we will have a new government next year but lets see if they have the balls to refuse to pay.

  12. @Bock….. I presume the Danish voters have played their part in electing the aforesaid adults, in much the same way that the Irish voters played their part in electing their non-adults ?

  13. @ defan – this government is selling the whole country to save their friends.

    Never a truer statement. We are being ushered into a generation of serfdom by FF.
    This shower have f*@ed up Ireland for decades, decades, our kids, and their kids (unless they wise up and move) will be stuck with the fallout from Cowen/Ahern/Lenihan & Co axis of weasels.
    I hope I am not the only one seething with anger at what is going on. I am in the process of making my tax returns, I am raging.

  14. I’m afraid that as long as the vast majority of people accept the premise that some people must be rich and others poor it’s always going to be essentially the same.

  15. Its not just Abramovich. Citigroup traders (they called them investors) started to make chimp noises at Lenihan when he was trying to talk to them. One was heard to shout “short Ireland”. If we had any balls as a country we should sue the fuck out of Citigroup.

    But Lenihan should simply have told them to piss off and for their lack of manners they payout would be Zero, Zilch, Nada. Feac.
    They are like a pack of wolves. They sense a weak prey and move in. Only when one of the pack gets a big slice taken out of him, will the rest of the pack back off.
    Pity that Lenihan doesn’t have those teeth.

  16. Bock,

    From ZeroHedge.

    The audio file of the second part of Lenihan’s interview arranged by Citi.

    (That would be the part after the embarrassment)

    Though it is in itself embarrassing enough.

    At 0:55

    “I’d like to thank Minister Lenihan and John Corrigan Chief Executive of the NTMA for very generously giving themselves (eh) up (eh) making themselves available today.”

    Slip of the tongue?

    At 1:06

    “I think throughout the current crisis the commitment of the Irish Government and the NTMA to a policy of transparency and open dialogue with international investors has been truly outstanding …. “

    Their commitment to keeping the Irish people in the dark and feeding them shit has also been truly outstanding.

    @ 7:17

    Minister for Finance Brian Lenihan.

    “Our other quoted institution Irish Life (he shortens the true name “Irish Life and Permanent”) didn’t … inaudible … which continues to be quoted on the stock exchange and is trading in the normal way … it doesn’t, it didn’t have property exposure….”

    Someone needs to tell the Minister that Irish Life and permanent has a balance sheet of €80bn, €35bn of which is residential mortgage loans and €2bn is commercial loans.

    That’s close enough to 50% of the balance sheet.

    Perhaps the Minister believes that there will be no write downs of residential mortgage loans.

    This is the ZeroHedge link.

  17. You’ve identified the problem. These fools, including Lenihan, are utterly at sea. They have no idea what they’re doing, and unfortunately the fools waiting to replace them are little better, though slightly less dishonest. Maybe.

  18. “though slightly less dishonest”

    That is our only hope. And it is little enough.

    I am sorry to say Bock. We are lost.

    The centenary of 1916 might as well have Pol Pot on the podium.

    The level of treason that Fianna Fail and the Greenshirts have visited on this country is beyond Troy.

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