What the Irish bankers knew on the night of the September 2008 bank guarantee fiasco
HOW EVENTS UNFOLDED ON SEPTEMBER 29TH, 2008, THAT WILL ULTIMATELY COST US €64BN.
In the run up to September 2008 conditions in the international financial markets had become very difficult. Bank of Ireland was concerned by the situation internationally and was concerned to ensure its own liquidity and that its assets books were properly collateralised. During this time I had regular but infrequent meetings with the governor of the Central Bank of Ireland (CBI),
Mr John Hurley. However, the then chief executive officer of the Bank of Ireland was the primary contact with the CBI and with the Irish Financial Services Regulatory Authority (the financial regulator.)
THE EVENTS OF SEPTEMBER 29TH, 2008
On the morning of September 29th, 2008, I met with Brian Goggin who had been meeting with officials from the financial regulator over the weekend in relation to Bank of Ireland’s potential interest in Bradford & Bingley Building Society. We discussed our general concern regarding the increasing withdrawal of deposits from Bank of Ireland. I was due to meet with John Hurley that afternoon to discuss the possibility of the European Central Bank (ECB) extending the availability of credit.
I believe that I received a call from Mr Seán FitzPatrick, then chairman of Anglo Irish Bank, at about noon in which he requested an urgent meeting with myself and Brian Goggin.
I agreed to his request, and myself and Brian Goggin met with Mr FitzPatrick and Mr David Drumm, then chief executive of Anglo Irish Bank, in a boardroom at the bank’s head office on Baggott Street at approximately lunchtime.
This meeting was quite short. Mr FitzPatrick claimed that Anglo Irish Bank had a significant credit facility which was to fall due the following day and that it was not in a position to repay this facility or to roll it over. I cannot, at this stage, recall the size of this facility but I remember that it was significant. Mr FitzPatrick asked if Bank of Ireland would be interested in buying Anglo Irish Bank or any part of it.
I informed Mr FitzPatrick that the acquisition of Anglo Irish Bank or any part of it was not something of interest to Bank of Ireland. The meeting then concluded, and Mr FitzPatrick and Mr Drumm left, with Mr FitzPatrick saying that he was going to contact Allied Irish Banks plc.
As I was now aware that Anglo Irish Bank was going to face a very serious difficulty the following day, I decided that this was something I had to raise with Mr John Hurley at my scheduled meeting that afternoon. During my meeting with Mr Hurley I updated him on the position as I understood it regarding Anglo Irish Bank. Mr Hurley advised me that there was very little that he could do in the circumstances.
Following my return from my meeting with Mr Hurley, I spoke with Mr Goggin. We were both concerned about Anglo Irish Bank’s position and the risk of collateral damage to Bank of Ireland. We decided that we should seek an urgent meeting with the government to update them on the situation. We both felt that AIB would share a similar view to our own, so I called the then chairman of AIBDermot Gleeson.
He agreed that such a meeting should take place and said that he and Eugene Sheehy, the then chief executive officer of AIB, would also attend. Telephone calls were then made to the Offices of the Taoiseach and the Minister of Finance, and a meeting was scheduled for approximately 9.30pm that night.
When we arrived in Government Buildings we were shown into a waiting room and subsequently invited to meet with the Government officials. As I recall, the meeting was attended by the Taoiseach, the Minister for Finance, the governor of the Central Bank, the secretary general to the Taoiseach, the secretary general to the Department of Finance, and the assistant secretary of the Department of Finance. I believe that there were others who came and left the room at various stages during the meeting but I cannot be certain.
The Taoiseach asked us to explain the purpose of this meeting and I briefed the meeting on the general global issues in the international financial markets and specifically the concerns which we had arising from our meeting with Anglo Irish Bank earlier that day.
I recall that Mr Gleeson also addressed the meeting and that Mr Sheehy and Mr Goggin also spoke. I recall that Mr Hurley asked if AIB and Bank of Ireland could provide immediate liquidity support to Anglo Irish Bank. I recollect that the amount being discussed was approximately €5 billion each.
We left the room to consider whether this was something that the Bank of Ireland could provide and Mr Goggin made some calls to Bank of Ireland to see if this could be done.
We were subsequently invited back into the meeting and I confirmed that the Bank of Ireland could provide this amount of liquidity but that it would require a guarantee from the Government that the Bank of Ireland would get its money back.
We were then informed that the Government was considering putting in place a guarantee of all of the Irish financial institutions and that there would be a Cabinet meeting the following morning to approve this. I cannot recall the exact time that the meeting ended but it was very late, approximately 3.30am or 4.00am.
Unite for Life Sligo–Leitrim group thank local Politician’s for their pro-life support
As we approach the first anniversary of the passing of the law which for the first time permitted abortion in Ireland, we would like to say“Thank you” to those Councillors and Senators who had the moral courage and clarity to oppose that legislation and we would strongly urge our supporters to vote for them in the upcoming local and European elections.
We want to be represented by people of principal. The Fine Gael & Labour Government legalised abortion (right up to full term pregnancy) based on a threat of suicide in the full knowledge that there is no evidence it is a treatment for suicidal feelings. They even refused an amendment that would provide pain relief for an unborn baby during late term abortions. The Fine Gael Party promised voters they would not legalise abortion.
BUT THEY BROKE THEIR PROMISE LIKE MANY MORE PROMISES MADE BEFORE THE LAST GENERAL ELECTION?
How Sligo County Councillors Voted on 1st July 2013
Motion proposed by Matt Lyons & Seconded by Michael Clarke:
“That Sligo County Council call on the Government to amend the draft protection of life during pregnancy bill and remove suicidal ideation as grounds for abortion. Furthermore that the council calls on all local Oireachtas representatives to vote against the bill in its present form”
For the motion and against the abortion legislation (9) Martin Baker, Michael Clarke, Jude Devins, Margaret Gormley, Jerry Lundy, Matt Lyons, Jim McGarry, Rosaleen O’ Grady and Joe Queenan
Against the motion and for the abortion legislation (1) Sean MacManus.
Those who abstained or walked out of meeting on 1st July 2013. A total of (12)
Mary Barrett, Declan Bree, David Cawley (abstained), Veronica Cawley, Thomas Collery (abstained), Michael Fleming, Hubert Keaney, Joe Leonard, Pat McGrath (abstained), Aoife McLoughlin, Gerard Mullaney, Dara Mulvey (abstained).
Not at meeting on 1st July 2013 (3) Patsy Barry, Deirdre Healy – McGowan, Gerry Murray.
As the result there were 9 for the motion, 1 against, 4 abstentions the Cathaoirleach declared the motion carried.
Here is a reminder of how our 8 Local Oireachtas Members Voted for the amendment:
Michael Colreavy T.D. (SF) voted for the abortion legislation
Senator Michael Comiskey (FG) voted for the abortion legislation
Senator Imelda Henry (FG) voted for the abortion legislation
Tony McLoughlin T.D. (FG) voted for the abortion legislation
Senator Mark McSharry (FF) voted against the abortion legislation and Senator Pascal Mooney (FF) voted against the abortion legislation.
Senator Susan O’ Keeffe (LAB) voted for the abortion legislation
John Perry T.D. (FG) voted for the abortion legislation
Finally the Unite for Life Sligo–Leitrim group
WOULD LIKE ALL SUPPORTERS TO VOTE NO 1 FOR RONAN MULLEN AS OUR REPRESENTATIVE IN EUROPE IN THE NEXT EU PARLIAMENT.
SENATOR RONAN MULLEN HAS CAMPAIGNED VIGOURSLY AGAINST THE ABORTION LEGISLATION AND VOTED AGAINST IT IN THE SEANAD IN 2013.
Michael McGrath FF accuses the IDA of Dublin jobs bias?
Large areas of the country are being ignored by foreign investors with 12 counties recording no IDA-sponsored visit by an overseas investor for the first quarter of this year.
New figures provided by the Minister for Jobs, Innovation and Enterprise, Richard Bruton, show that out of 89 IDA sponsored visits between January and the end of March this year, 53 were in in Dublin.
Fianna Fáil Finance spokesman, Michael McGrath TD, claimed the figures are “further evidence of the Government’s failure to put in place balanced regional development at a time when towns and villages are dying on their feet”.
“The statistics show that there is a striking bias in favour of bringing companies to Dublin. The figures show that 60% of the visits this year were to Dublin. It is a remarkable statistic.”
The counties that failed to record an IDA-sponsored overseas investor visit in the first quarter were Carlow, Kerry, Kildare, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Tipperary, Waterford and Wexford.
Cavan, Kilkenny, Meath, and Westmeath recorded one visit, and Clare, Donegal and Wicklow two.
The second most popular county for foreign investors to visit was Cork with 10 visits, Limerick recording six and Galway four visits.
The figures represent a continuance of Dublin dominating foreign direct investment visits, with the 2013 figures showing that Dublin accounted for 55% of 180 of the 326 IDA-sponsored visits.
Deputy McGrath obtained the statistics through a written Dáil response and said the IDA had a very good track record of attracting foreign direct investment into Ireland “but it is failing by and large to bring overseas investors to counties outside Dublin”.
He said: “The IDA has a very important role to play in influencing overseas investors and inform them of the strengths of locating outside Dublin where it is much less costly to do business with lower property prices for instance.”
Mr McGrath said the failure to ensure a greater proportion of foreign direct investment visits around the country “only leads to a two-tier economy”. Cork was punching below its weight when it came to attracting foreign direct investment .
Separate figures received by Deputy McGrath show that Dublin-based IDA supported firms received €198.2m, or 32% of the €626.9m IDA grand aid between 2006 and 2012.
A spokesman for the IDA said: “A county- by-county breakdown of job creation trends, as is being used here, and is used by others wishing to undermine the IDA’s work in the regions, reveals virtually nothing about how Ireland is performing in attracting foreign direct investment.”
He said: “Site visits are in no way indicative of IDA’s efforts to market a region to overseas investors or indeed of IDA’s activities in that area.
“IDA executives from our 19 offices across the world are marketing our regions in their own marketplaces on a daily basis.”
He pointed out that total employment at IDA client companies is now at the highest level since the foundation of the state investment agency.
He added: “IDA Ireland works extremely hard to make its client companies aware of the opportunities that exist outside of Dublin.
The spokesman said: “A large part of IDA’s regional work includes working with our existing base of companies to sustain and increase their levels of investment. This work is vitally important but is rarely acknowledged or picked up in these statistics.
“The final decision on where to locate an investment ultimately resides with the client company, despite IDA efforts and financial support available in some regional locations.
He said: “IDA Ireland continues to make its clients aware of opportunities to locate their businesses outside of Dublin and Cork. This includes designing itineraries for prospective clients in which IDA executives will drive prospective investors around the country to meet with recruitment and property professionals in the regions, as well as existing clients.”
The charities regulator was meant to be set up by Easter, said Minister Shatter?
Úna Ní Dhubhghaill was appointed as CEO of the authority in March of this year.
Minister Shatter had a set a deadline of this weekend, but instead will look to appoint the board “in the near future”.
The board of directors of the charities regulator is to be appointed in the near future – but is likely to miss Minister Shatter’s deadline of this weekend.
The Justice Minister said in January he intended to have the Charities Regulatory Authority set up by Easter.
While Principal Officer in the Department of Justice and Equality Úna Ní Dhubhghaill was appointed as CEO of the authority in March of this year, it’s unlikely the rest of the board will be announced by tomorrow.
A Department spokesperson said this is likely to take place “in the very near future”.
A call for expressions of interest was announced in late January, with a view to making appointments before Easter to allow the authority to come into operation at that time, Shatter said.
The creation of the new regulatory authority has been in the works since in July 2013, aiming to increase public confidence in charitable organisations.
Minister Shatter previously stressed that charitable organisations “have a duty” to use funds received from the public “efficiently and ethically in pursuit of their charitable purpose”.
The sector has been hit by recent revelations over pay and remuneration.
A recent survey revealed that almost 400,000 fewer people gave to charity over Christmas, with Fundraising Ireland stressing that the sector needs to regain the public’s confidence by being completely transparent and accountable.
EIB to offer Ireland & EU €2bn in funding for low-carbon energy projects
EIB to offer €2bn in funding for low-carbon energy projects.
The European Investment Bank (EIB) is to invest €2bn in funding for low-carbon renewable-energy projects across the European Union.
The funding has been raised by the sale of 300m emission allowances worth an estimated €548m under the NER300 programme, one of the largest funding programmes for carbon capture and storage demonstration projects and innovative renewable-energy technologies in the world.
The EIB, acting on behalf of the European Commission (EC), started to sell the first round of 200m of the EU allowances covered by the NER300 scheme in 2011, followed by more than €1.5bn raised during the first phase of sales that ended in 2012.
Jonathan Taylor, EIB vice-president, believes the funding will contribute significantly to the future of renewable energy in the EU and beyond. “The EIB is pleased to support future investment in low-carbon demonstration projects.
“Successful completion of monetisation of carbon allowances under the NER300 scheme will help both carbon capture and storage schemes and innovative renewable-energy projects across Europe reach a commercial scale. We will continue to work closely with the EC to ensure that the best applicants can be awarded proceeds raised from the ground-breaking NER300 scheme,
New earth-sized planet in habitable zone may have ability to hold water, means life
The Kepler space telescope discovers Earth-sized planet in a habitable zone.
Like Hubble, NASA’s Kepler space telescope is the gift that keeps on giving. It has located nearly 1,000 confirmed exoplanets in almost 80 star systems, leading astronomers to conclude there might be as many as 40 billion Earth-sized planets orbiting habitable zones in the Milky Way galaxy–and now for the first time, Kepler has found one of them.
The newly found planet, cataloged as Kepler-186f, is only 10% larger than Earth and orbits its star in that region of space known as the habitable zone–the distance from its sun that is just right, neither too cold nor too hot for liquid water to exist without boiling away or turning to ice.
“The discovery of Kepler-186f confirms that planets the size of Earth exist in the habitable zone of stars other than our sun,” NASA said in a statement.
However, just because a planet is in a habitable zone does not mean it is home to any life forms. For example, Kepler-186f could be rocky or metallic, with an atmosphere that is very thin, very thick, or nonexistent.
Relatively speaking, Kepler-186 is right in Earth’s back yard, at a distance of only 500 light years away. So, when you consider that the Milky Way galaxy is 100,000 light years across, it is easy to see that there could easily be billions of Earth-sized planets scattered across it, many of them located in habitable zones. And that realization makes it easy to conclude that among these billions of planets, there must be some containing life forms.
Some astronomers are on the lookout for just such planets. For example, the lead author of the study describing Kepler-186f, Elisa Quintana, is a research scientist at the SETI (Search for Extraterrestrial Intelligence) Institute, NASA said. The study was published April 17 in the journal Science.
“We know of just one planet where life exists–Earth. When we search for life outside our solar system, we focus on finding planets with characteristics that mimic that of Earth,” said Quintana in a statement. “Finding a habitable zone planet comparable to Earth in size is a major step forward.”
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