Senator David Norris' address to Seanad Eireann (the Irish Senate)

In Sept. 2007, fourteen months before Ireland's bank bailout, I resigned from my position as the Risk Manager of UniCredit Bank Ireland. I did that in order not to incriminate myself. I have spent the last 4 years seeking justice. On Feb. 23rd., 2010, I was fortunate to have Senator David Norris raise the matter in Seanad Eireann (the Irish Senate), and request a response from the Minister of Finance, Mr. Brian Lenihan. Senator Norris concluded by stating that:
"...there is ministerial responsibility in this matter. This is a grossly serious matter which has been reported to the Financial Regulator. A man has lost his job as a result. He honourably resigned. The degree of breach was 40 times the accepted margin. This is a disaster. If we are not prepared to face the issue and investigate it when it has been laid before the House, there is absolutely no hope for the financial system or its reputation worldwide...How can the Financial Regulator investigate himself? He was in breach of his responsibility."
In Nov. 2011, Emma Alberici, Europe correspondent for ABC TV, told my story as part of her documentary 'Going Rogue' which featured Nick Leeson and Sir John Vickers among other interviewees. It is ironic that at a time when the Irish tax-payer is bailing out un-secured bond holders, my story which occurred in Dublin, is deemed of interest to the Australian TV license payer. Please click on 'play video' on the following link:
VRT, Belgian state-TV, aired this interview with me on March 6th., 2013. My Interview begins in minute 27:
Het verdriet van Europa: Zeepbellen blazen (The sadness of Europe: Bursting bubbles)
VRT, Belgian state-TV, released extra footage of my interview on March 8th., 2013. (in English):

Saturday, 23 July 2011

Irish Government makes a statement on a SATURDAY re Bank of Ireland

Thanks to Golem XIV for his help on this:

Saturday, 23 July 2011

Bank of Ireland collapse confirmed

WhistleblowerIRL's rumour is now confirmed.

Again from Reuters
Ireland says in talks over Bank of Ireland equity investment

DUBLIN, July 23 | Sat Jul 23, 2011 10:02am EDT
(Reuters) - The Irish government on Saturday said it was in talks with potential equity investors in Bank of Ireland (BKIR.I) as it struggles to keep its last major bank out of state control.
They hid this one for as long as they could but once word got out they had no choice but to confirm, hence making a statement on a Saturday. They couldn't let this be a rumour come Monday.

The article goes on to break the inevitable 'shaft the tax payer' news that,

If the lender cannot find an investor or persuade its largely retail shareholder base to participate in a 1.91 billion euro ($2.8 billion) rights issue then the state, which is underwriting the offer, could end up with a 70 percent stake. 
Translation - the banks was indeed in New York on Friday trying to flog it and it's not looking good. If it was the government wouldn't have released this news at all. The big American Investors aren't buying because they don't think the bank is viable or solvent and worry that the Irish government and its EU pimp may not bail it sufficiently to make it profitable to buy in. That leaves asking Irish investors to be patriotic and give more of their money to the people who own the banks bonds. Fat chance.

So it's a goner and guess who will pay? The tax payer of course.

Dublin has closed two of its six domestic lenders, merged another two state-controlled institutions and will soon take over a fifth as it seeks to draw a line under a banking crisis that forced the former Celtic Tiger economy into an EU-IMF bailout.
Seeks to draw a line? Let me rephrase that, " it seeks to draw the noose a little tighter round the necks of its own people for the profit of the few."

See WhistleblowerIRL's comment under the previous blog for the full article and his take on it.

Here is the link to Reuters article above:

Irish Bank Default Rumour - UPDATE

The plot thickens.

This came in yesterday from Reuters and seems to have received almost no notice at all.  Which I find strange as it looks to me that it confirms WhistleblowerIRL's post.
DUBLIN, July 22 | Fri Jul 22, 2011 6:48am EDT
(Reuters) - The International Swaps and Derivatives Association (ISDA) on Friday set July 28 for an auction to settle credit default swaps (CDS) in relation to Bank of Ireland after ruling that the bank had suffered a restructuring credit event.
The ISDA said a restructuring credit event occurred after Bank of Ireland closed an offer to buy back about 2.6 billion euros of Tier 1 and Tier 2 subordinated debt at a discount of up to 90 percent earlier this month.
A credit event is financial industry jargon for default on payment, breach of bond covenants or other event that casts doubt on an issuer's ability to service its debt. (Reporting by Conor Humphries) 

WhistleblowerIRL said he was told one of the last two major Irish Banks to have not yet crashed was about to be nationalized. In my mind that had to be Bank of Ireland. The Bank of Ireland did spend an unusual amount of time on my blog yesterday. But nothing at all in the main stream press. Then late yesterday Reuters says Bank of Ireland had defaulted on payment and was trying to buy back 2.6 billion in Tier one and two subordinated debt.

For those who don't know the ISDA is the body which sets the standards for all swaps deals other than some private over the counter deals done direct between buyer and seller. Any market based deal adheres to the ISDA standards. So the ISDA know what they are talking about. This is a deal they are fully aware of and not in any way just a market rumour.

A "restructuring credit event" is what Greece is trying to avoid. It is, as the article says a default on debt. And this is a LARGE default. 2.6 BILLIONS large and a 90%!! loss for the bond holders. And this was 'earlier' this month.

Now either I have completely misunderstood what this is or I have to ask why this wasn't news back then or even today?  Weeks ago, Ireland's last standing bank tried to buy back at a 90% discount (90% loss from face value for those holding that debt) and no one said a word?

If this is what it seems, then this must be the rumour WhistleblowerIRL had heard. I will try to talk to him later today.

Bank of Ireland has defaulted on 2.6 billion of bonds and is trying to buy them back at a huge discount. Why it's trying to buy them back is then the question and who does it help to do so?

Whoever it helps in the long run, bank or bond holders, the fact is Bank of Ireland is valuing a large chunk of its own Tier one and two subordinated debt as having lost 90% of its original value!

I think the Euro authorities will need to get that EFSF (European Financial Stability Facility) - the European IMF and Plunge Protection Team rolled in to one - fully  funded and looking West to Ireland not just East and South to Greece, Portugal, Spain and Italy.