Should we save Anglo?

Nodin

Its a bit unclear whether the aim of getting the cash from ILP was to make the books look better, use it to keep chugging on in the short term or 'wtf?'.
http://www.independent.ie/national-news/new-probe-into-83644bn-boost-to--deposits--at-anglo-1635188.html

Cowan in the Dail this morning said that not all Directors of AIB were aware of the transaction, which is obviously a cause for concern in itself. The main sin of ILP may be that they knew that if they gave AIB the money, it would have been covered by the government guarantee that was made public a day or so later. Sin and crime are not synonomous however.

Nodin

It appears that they did actually write up the loans as a customers deposit, and not as an interbank loan.
http://www.rte.ie/news/2009/0211/angloirish.html
Dearie me.

Nodin

Rather than start yet another 'Bank' thread, I'lll place this here....

September 2008 had been a dreadful month for Anglo, with depositors withdrawing €4bn. With its year-end, approaching Anglo desperately needed to replace these retail deposits on its balance sheet. But what happened next was extraordinary.
It seems as if Anglo "lent" €7bn to IL&P, which then placed the money with its investment management subsidiary, Irish Life Investment Managers. ILIM then turned around and deposited the money with Anglo.
By using ILIM rather than depositing the money under its own name, IL&P allowed Anglo Irish to classify the money as a retail deposit rather than as an interbank loan.
The effect of this circular transaction was to artificially boost the apparent level of Anglo's retail deposits without in any way boosting its underlying cash position

Link

...thus, an utterly 'bent' transaction.

murfie

Does not surprise me, we all knew there were some shady dealings in all the banks. I would imagine this is the tip of the iceberg and we will never truly know all that has gone on in the banks.
I mean to have originally stated that this is a normal bank to bank everyday transaction and happens all the time leads me to think how many other times (and who else) did this happen.
Are the board of Anglo still in place also, or were they all removed when the government bought it out? If not they should also be getting the axe.

Nodin

murfie wrote: »

Does not surprise me, we all knew there were some shady dealings in all the banks. I would imagine this is the tip of the iceberg and we will never truly know all that has gone on in the banks.
I mean to have originally stated that this is a normal bank to bank everyday transaction and happens all the time leads me to think how many other times (and who else) did this happen.
Are the board of Anglo still in place also, or were they all removed when the government bought it out? If not they should also be getting the axe.

I think they're all now gone.......Two went in December and the rest in Jan of this year.

Harolds+

"Let them eat cake"

If anything we should target the Developers who got interest free loans from these Banks that built over-priced and shoddy buildings but FF are up to their necks in corruption and wouldn't dare attack their builder buddies.

We are the Nigeria of Europe thanks to the like of Anglo and IL&P - disgrace and the Irish media and some of the people blame the public service!

recessionpatch

why not we save every other idiot in the country

Nodin

recessionpatch wrote: »

why not we save every other idiot in the country

....because not every idiot has the potential to drag the banking sector down with it......

imme

recessionpatch wrote: »

why not we save every other idiot in the country

eh, is it a bit late know to wonder about Anglo.

nesf

recessionpatch wrote: »

why not we save every other idiot in the country

Reregistering to get around a site ban is a bad idea. Resurrecting a 10 month old thread to make a trollish comment is a pretty dumb thing to do after doing the former since you are practically begging the mods to take 2 minutes to do an IP check on you..