Chairman and Chief Executive of Anglo Irish Bank Resign

Them Christian bankers would take the two eyes from your head, and then try to sell you glasses.

And as for that other crowd over in Manhattan -

http://www.nytimes.com/2008/12/24/us/24jews.html?_r=1&hp

The full scope of the misdeeds to which Mr. Madoff has confessed in swindling individuals and charitable groups has yet to be calculated, and he is far from being convicted. But Jews all over the country are already sending up something of a communal cry over a cost they say goes beyond the financial to the theological and the personal.

Here is a Jew accused of cheating Jewish organizations trying to help other Jews, they say, and of betraying the trust of Jews and violating the basic tenets of Jewish law. A Jew, they say, who seemed to exemplify the worst anti-Semitic stereotypes of the thieving Jewish banker.

Several rabbis said they were reminded of Esau, a figure of mistrust in the Bible. According to a rabbinic interpretation, Esau, upon embracing his brother Jacob after 20 years apart, was actually frisking him to see what he could steal. “The saying goes that, when Esau kisses you,” Rabbi Visotzky said, “check to make sure your teeth are still there.”




Sharia banking anyone?

Helium Three wrote:

Sharia banking anyone?

We've banged on a little about that one before here - cactus and Squire I think. Are you sure there's no rule-breaking in Islamic banking? What part of the body do you get lopped off if you swindle your people ? Looks like they're the most honest anyhow but can you ever be sure ?

Lots of people who bank are atheists.

Zhou_Enlai wrote:

They're not going to cut them off. The fear is that they will nationalise them or force a fire-sale merger.

Personally, I think it is probably a good time to invest in them as it goes against all the conventional wisdom of the investment community who have been shown to be completely wrong on most things.

I've been thinking about that all day. Sean Quinn still has his 15% holding via the CFD yokes I think. Where's me wallet ...

Maybe Audi it is only a matter of time before we learn of similar behaviour within the Islamic banking system all right. Here is a recent tantalising report, admittedly involving the infidel bank JP Morgan Chase, who have their own sharia based unit

http://www.marketwatch.com/news/story/jp-morgan-islamic-unit-executive/story.aspx?guid=%7BA61001E9-8476-4076-A21B-E411440DCFDC%7D

The detainment is the latest in a string of arrests in this Middle East boom town, which is enjoying an oil-fueled spending and investment binge.

Rabbi Jennifer Krause draws a wider lesson from the Madoff betrayal -

“The Talmud teaches that a person who only looks out for himself and his own interests will eventually be brought to poverty,” she added. “Unfortunately, this is the metadrama of what’s happening in our country right now. When you have too many people who are only looking out for themselves and they forget the other piece, which is to look out for others, we’re brought to poverty.”

[Warning - avoid this post if the next line bothers you]

The first reported Madoff-induced suicide

http://news.bbc.co.uk/2/hi/business/7798533.stm

A French investment manager who put $1.4bn (£1bn) into Bernard Madoff's fraud-hit scheme has committed suicide in his New York office, police said.

Rene-Thierry Magon de la Villehuchet, 65, was found sitting at his desk with both wrists slashed, New York police spokesman Paul Browne said.

A bottle of sleeping pills was on his desk and a box cutter lay on the floor.

Good God.

All while the SEC looked on.

Auditor #9 wrote:

coc wrote:

Yes, but that was an emegency middle of the night job. We've had months now to tease out the implications and it is clear we can't afford to not cut Anglo loose.

Even if Seán Fitz had not been exposed the Gov should be frantically looking for get out clauses. With him exposed, it's a no-brainer. Expel them from the guarantee now. The share price collapse alone suggests the market expects this eventually anyway. Save us the €1.5bil and tell them they are on their own.

I know lawyers are not economists, but they are lawyers and they surely had a few get-out-of-jail-free-cards in the deck when they drafted the guarantee. If not, we are all banjaxed. Iceland banjaxed. 30% unemployment. 30% emigration.

Well Anglo's results came out on 10th December .. I don't remember if PWC made a faithful assessment of them during the Guarantee fiasco. We had a poll here on whether it was a disaster/not disaster and it got fewer reponses than other polls and they were about equal - so even intellectuals like us aren't really that sure -- or do we really have all the info and details and even the interest.

People it seems are failing to make the connection between these things - budget, bailouts, bank guarantee. Our budget will be crippling next year if we end up having to borrow 20 billion on top of what we will have to borrow anyway.

But maybe we're jumping the gun - maybe the guarantee has details in it that make provision for the kind of disaster that may be lying between the pages of the Anglo loan books ?

Auditor 9 - the terms of the Guarantee were next to impossible to get hold of - eventually I got them by emailing Joan Burton -I posted them here.
The Labour Party was struggling to get hold of the terms ahead of the critical votes (I wouldn't put too much pass on them after listening to Ruairi Quinn yesterday). No one else was asking for them.

The whole thing was classic "shock" - it was left to the last moment and then TDs were told it was do or die.

People at this stage are looking after number one. The rats are leaving the ship.

Someone said to me today that Fitzpatrick is in Barbados?

Where do they get these names which are so apt. Governor Blowjobavits, Bernie Madeoff and now Villephucet. As SaSa Gabor would say vill he vill he. He surely did phucet big time when he gave 2 billion to a lad called Madeoff.

Villephucet or ville he not. Phucet and phuc all belonging to him as me few bob is gone

Was talking last night to someone (Irish guy) who works for Madoff who had a legitimate trading business, as well as the ponzi scheme for "special clients". Of course, no one had any idea of the dodgy business going on in Madoff's personal office.

Is Eamon Ryan breaking ranks? He is saying the banks bosses should go.

Gavin over on Gavin's Blog has put some information together on the connections between Anglo characters and DDDA characters, many of whom are the same

Gavin's Blog wrote:

Chairman of Anglo Irish Bank Sean Fitzpatrick has resigned. The €87m figure could lead to serious problems for the bank, with the bank now only worth €250m in total.

The Financial Regulator has known for months, so the Government has known for months, and still they went ahead and guaranteed Anglo Irish Bank. We could see the Government stepping in to save Anglo.

And this very interesting stuff from Shane Ross from last year about the relationship between the DDDA and Anglo.

The Board of Directors of Anglo Irish Bank Corporation plc announces that Mr. Sean FitzPatrick has tendered his resignation as Chairman with immediate effect. The Board has accepted his resignation with regret. The Board also announces Mr. Lar Bradshaw, a non-executive Director, has tendered his resignation. The Board has accepted Mr. Bradshaw’s resignation with regret.

Mr. Donal O’Connor was nominated and appointed Chairman, in succession to Sean FitzPatrick at a Board Meeting this afternoon. He joined the Board as a Non-executive Director in June 2008. He was Senior Partner of PWC for 12 years until June, 2007, and a member of the Global Board of PWC for 6 years to September, 2008.

Mr. FitzPatrick’s decision to resign is based on the fact that, over a period of eight years to 2007 he temporarily transferred loans with Anglo Irish Bank to another bank prior to the Group’s year end. This transfer of loans did not breach banking or legal regulations. It was, however, inappropriate from a transparency point of view.

At 30th September, 2008 , the loans to Sean FitzPatrick totalled €87 million. The total for Directors’ loans at that date was €150 million.

http://www.gavinsblog.com/2008/12/18/anglo-irish-bank-a-lesson-in-an-irish-solution/

Deposit money has been fleeing from Anglo for almost a year now. I doubt there is any real deposit money left. So the only deposits are interbank loans which are now Gov. backed.

Anglo is been given the 1.5 Billion to allow it to function as a loan closer, eventually getting broken up and sucked into BOI/AIB. But in a slow controlled manner so as not to scare anyone. Maybe 4-5 years. It is a dead duck as a bank though.

Auditor #9 wrote:

coc wrote:

cactus flower wrote:

... I'd like to draw attention to Ruari Quinn's interview this week on RTE in which he stoutly defended the propriety of appointing people who "have delivered leaflets to get me elected" as heads of State Boards etc.

This man cannot envisage politics without a payoff.

I heard that too. He seemed to think there was some huge difference between him doing that and Bertie appointing his mates, specifically Joe Burke. I think the point he was trying to make was that Labour party appointees aren't thickos, as if that could in some way make up for the inherent corruption!

Sorry but what exactly was Ruairi Quinn saying - was it on Pat Kenny or someone ?

I think it was a lunchtime news programme. Ruairi Quinn was saying that political appointments to State Boards as a thank you gift to your supporters was perfectly O.K. so long as you were the Labour Party, and not FF.

On the other Bank thread, I posted some information on how Anglo Irish has increased the size of their loan book to developers since the Bank Guarantee. Fitzpatrick removed all his own assets from the Bank the week before the Guarantee went through.

Are these guys are doing anything other than maximising the stash for themselves and their friends as they leave the sinking ship?

Is this the post on the other thread?

cactus flower wrote:

Just read this article that says that Anglo Irish has actually increased its loans to developers since the Bank Guarantee.

http://www.irishtimes.com/newspaper/finance/2008/1204/1228337398499.html

This 28th November Press Release from the Department of Finance shows that Government seems to be relying on a report by the Central Bank and the Regulator of the position of the banks September 2008.
http://www.finance.gov.ie/viewdoc.asp?DocID=5553

This was the report that said:

Quote :

The capital position of each of the institutions reviewed is in excess of regulatory requirements as at 30 September 2008. The report also concludes that even in certain stress scenarios the capital levels in the financial institutions will remain within regulatory requirements in the period to 2011.

The Minister noted that the Government’s guarantee Scheme has been successful in safeguarding the stability of the Irish banking sector and in restoring its liquidity position. The Minister has been engaging with the financial institutions in respect of their obligations under the Scheme. However, the Minister is aware that international capital market expectations in relation to capital levels in the banking sector have altered

.

The detailed findings of the report are not available due to "commercial sensitivity".

This is the DoF Statement by Lenihan in which he expressed "disappointment with the circumstances surrounding" Fitzpatrick's resignation and states he was consulted on the appointment of Donal O'Connor

http://www.finance.gov.ie/viewdoc.asp?DocID=5607&CatID=1&StartDate=1+January+2008&m=n

The details of the recapitalisation scheme are here:

http://www.finance.gov.ie/viewdoc.asp?DocID=5609&CatID=1&StartDate=1+January+2008&m=n

There has to be an EGM and Anglo Irish shareholders must vote for the scheme if it is to go ahead. It appears that legislation to change the Pensions Reserve Fund terms must be needed as well.

Anglo used to be Dublin City Bank or something wasn't it ?

That's the post Auditor. They gave rational reasons for extending more loans - to finish building a project was one. Its just that under the circumstances I don't think they should be making these decisions, that risk more public money, without serious surveillance and controls.

This was posted on Indymedia:
"ANGLO IRISH DIRECTORS SHOULD BE ARRESTED AND FINANCIAL REGULATOR SACKED" SAYS WORKERS' PARTY REPRESENTATIVE

"The most recent revelations relating to the activities of Sean Fizpatrick, the Chairman of Anglo Irish Bank, show yet again how corrupt the financial and political establishment is in this country” according to Malachy Steenson, Dublin Central representative of the Workers’ Party and their candidate in the North Inner City in the forthcoming local elections.

Speaking to local party members and supporters early today he said: "The resignation of Sean Fitzpatrick and Lar Bradshaw following the discovery by the Financial Regulator of loans of €87 million being hidden in the audited accounts shows that bank directors think they are above the law. In October we called for a full enquiry into share trades by Fitzpatrick & Bradshaw, where shares in Anglo were purchased prior to the announcement of the government guarantee and sold immediately afterwards with massive profits to Fitzpatrick & Bradshaw. Whilst the Stock Exchange began an enquiry, the findings have not yet been released. As usual the political establishment ignored our call”.

Mr Steenson went on to say: “We demand the Bank Directors are held accountable and that Fitzpatrick and Bradshaw are treated the same way as a working class person caught shoplifting a loaf of bread in a supermarket - they should be immediately arrested and questioned in relation to insider trading and fraud. It is clear that the banking elite and the political elite are one and the same. It is also ironic that Bradshaw was Chairman of the Docklands Development authority from 1997 – 2007, a board set up to revitalise one of the most neglected areas in the country. It can now clearly be seen for whose benefit that purported re-vitalisation occurred, whilst at the same time Fitzpatrick is on the Board of Aer Lingus”.

"Further as it is now revealed that the hiding of personal loans has been going on for over for eight years and has only now been discovered we demand the immediate sacking of the Board of the Irish Financial Services Regulatory Authority along with those in charge in both the Banking Supervision and Markets Supervision sections".

Adding “of course the common factor in all these matters is that they are supporters and funders of Fianna Fail”

Not a big fan of the Workers Party, but he has a point.

Evm - they merged with Dublin City Bank to form the Anglo Irish Banking Corporation. They also took over the Ansbacher Bank
- http://www.ibf.ie/pdfs/daibfmems.pdf

They did not steal a loaf of bread though. In fact they stole nothing. And broke no law.

EvotingMachine0197 wrote:

They did not steal a loaf of bread though. In fact they stole nothing. And broke no law.

I don't know whether they broke any laws or not. Have there been any investigations? Mr. Fitzpatrick has said he has broken no laws, but I have read commentary from business/finance writers that suggests that it should not be left to him to decide.

A bit of light relief


In a dire year for mutual funds, the Amana Trust Income Fund, the main Muslim investment fund, has trumped those from all other faiths in the US by losing only 25.8 per cent of its value for the year - half the average 44 per cent loss for US stock funds...

Amana has benefited from its avoidance of financial stocks that are forbidden under Shariah religious law - which eschews interest-paying investments. However, the Amana funds also outperformed in 2006 and 2007, before the onset of the financial crisis.

Amana Trust Income just squeaked past the Roman Catholics' Ave Maria Rising Dividend fund, which lost 26.4 per cent of its value during the year. The Ave Maria funds invest according to Catholic criteria, which include avoiding companies that give employees same-sex partner benefits. Unlike most faith-based funds, Ave Maria does not avoid alcohol stocks because the Bible does not proscribe alcohol.

http://www.ft.com/cms/s/0/406b167e-d3b7-11dd-989e-000077b07658.html?nclick_check=1


With just a nod in the direction of the Almighty, this piece by Joseph O'Connor is a hoot with a kick-

The year of living dangerously

Sample:

2008. WHAT A fabulous year. Everyone became an expert. We all got in touch with our inner banker. Innumerates who, like myself, got an E in Inter Cert maths, suddenly started talking hedge-funds and fluctuations in the Footsie. Bank executives proved initially unwilling to be interviewed in the media, presumably because they were busy purchasing tights to put over their faces as a disguise. But when a few of them bravely condescended to go on the record, it was clear they weren't feeling all that apologetic. The massive salaries and munificent bonus packages were required, we were assured, because you can't have a bank run by any auld gormless poltroon. It takes talent to loan other people's money to property speculators who can't repay it; and such a giftedness comes from God.

Ha!

Any atheist funds, He3 ? We don't believe in nuffin'.

cactus flower wrote:

Ha!

Any atheist funds, He3 ? We don't believe in nuffin'.

Here is someone who doesn't agree with that...

Speaking to the Berliner Zeitung newspaper, Bishop Huber argued bankers had a duty to look beyond the short term: "Never again should a Deutsche Bank chief executive set a profit goal of 25 per cent." Such goals drove up profit expectations to unsustainable levels and amounted to "a form of idolatry", he said. "In the current circumstances, money has become a god."

Banks and idolatry

Anglo Irish Banking Corporation takes over the Ansbacher Bank 1996. Any comments or information?

http://www.ibf.ie/pdfs/daibfmems.pdf

http://www.angloirishbank.com/About-Us/Our_Acquisitions/

Aithnionn ciaróg ciaróg eile.

Mary Harney said this in the Dail in 2002

Quote :

The report of the McCracken tribunal was published in August 1997, shortly after I came into office. I immediately appointed authorised officers to examine [1881] the books and records of Garuda Limited and Celtic Helicopters Limited, companies whose activities had been highlighted in the report. On foot of an interim report by the authorised officer on Celtic Helicopters Limited, I appointed in January 1998 an authorised officer to Ansbacher (Cayman) Limited, Guinness & Mahon (Ireland) Limited, Hamilton Ross Co. Limited and Irish Intercontinental Bank Limited. The authorised officer's report on Ansbacher (Cayman) Limited, submitted to me in June 1999, was not published, under the provisions of the Companies Act, 1990. It formed the basis for an application by me to have inspectors appointed by the High Court to Ansbacher (Cayman) Limited.

We must consider carefully the systemic failures identified by the inspector's report and the action taken by the Government to strengthen legislation, regulation and enforcement to prevent the recurrence of such practices and to maximise our ability to discover them quickly and bring the participants speedily to justice. We must identify further strengthening of the legislative and regulatory framework that may be required in the light of the inspector's findings. I assure the House that the Government is open to and will carefully consider all suggestions for such improvements.

The Ansbacher, DIRT and other tax evasion schemes that have come to light clearly indicate significant regulatory failures on the part of a number of statutory authorities. There was failure by the Revenue Commissioners to fully and aggressively investigate and target tax evasion in certain sectors. There was failure by the Central Bank to fully and effectively oversee and regulate the banking sector. Statutory auditors and their professional associations failed to ensure companies properly accounted for their activities and complied with the letter and spirit of the law. The Department of Enterprise, Trade and Employment failed to recognise that the code of company law created a regime that needed to be actively enforced and to devote adequate resources to the task.

The Government has already taken actions to address the failures identified in the report. We have introduced measures designed to ensure our society is a fair and just place in which to live and do business. Tax rates, both capital and income taxes, have been substantially reduced, thereby reducing the incentive to evade tax and the level of activity in the black economy. We have strengthened the regulatory framework and provided substantial extra resources in order that there is now a clear and determined proactive approach by the organs of State to enforce the law, whether this is by the Revenue Commissioners in respect of the tax code or the Director of Corporate Enforcement in regard to the provisions of the Companies Acts.

A range of regulatory initiatives has been introduced. The Office of the Director of Corporate Enforcement has been established with proper resources and staffing. Increased penalties for [1882] corporate crime have been introduced. Additional resources have been provided for the Companies Registration Office to ensure companies meet their filing obligations. New penalties have been introduced to discourage the late filing of returns to the Companies Registration Office. A statutory company law review group has been put in place to ensure the provisions of our company law are effective and appropriate to the needs of our society. Better oversight and regulation of the accounting and auditing profession are being achieved by the establishment of the Irish Auditing and Accounting Supervisory Authority. There is more focused enforcement of the tax laws by the Revenue Commissioners which have been given increased investigative powers. Improved and better co-ordinated regulation of all types of financial undertakings will be achieved by the establishment of a single financial regulator.

...

Quote :

The ultimate irony is that the Central Bank operated from premises designed by one of the Ansbacher account holders, while another account holder sat on the board of the same bank. At least we are now presented with an opportunity to amend and refine the structures of the Central Bank in the context of the new financial services authority legislation that is to come before the House. I will be examining ways that [1889] we can strengthen the consumer focus of the bank in the new structure and ensure it becomes a regulator that is both feared and respected. It is regrettable that it has taken the Government five years to produce this long awaited legislation. It is another case of legislation delayed by a mixture of lethargy and fuddled priorities.

Well, that should be all right then.

This Dail debate on Ansbacher (Cayman), and on banking regulation in general, includes contributions from Richard Bruton, Mary Harney, Michael Higgins, Eamon Ryan and others, and is highly recommended reading:

http://historical-debates.oireachtas.ie/D/0553/D.0553.200207110003.html

https://www.tribune.ie/article/2008/dec/21/firm-linked-to-fitzpatrick-and-bradshaw-owed-101m-/

Been reading about Anglo Irish/Fitzpatrick for the last half hour.

Not good.

http://www.irishtimes.com/newspaper/frontpage/2008/1220/1229728408863.html

https://www.tribune.ie/article/2008/dec/21/what-drumm-fitzpatrick-and-anglo-irish-still-refus/

https://www.tribune.ie/article/2008/dec/21/the-highs-and-lows-of-drumm-fitzpatrick/