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):

Tuesday, 12 July 2011

Tuesday afternoon update from Italy

Bloomberg reports this afternoon that:

UniCredit Shares Halted in Milan as Italian Banks Extend Losses

July 12, 2011, 3:56 AM EDT
By Dan Liefgreen

July 12 (Bloomberg) -- UniCredit SpA was temporarily halted after falling as much as 7 percent in Milan as Italian banks extended losses. The Italian Exchange generally halts trading of a stock when fluctuations exceed 5 percent from the opening price. Milan-based UniCredit, Italy’s biggest bank, is trading at its lowest level since March 9, 2009. Intesa Sanpaolo SpA, the country’s No. 2 lender, declined as much as 7.3 percent and was trading at 1.44 euros, down 5.6 percent, as of 9:27 a.m.

Italy Plunge Brings Debt Crisis to EU’s Biggest Borrower

July 12, 2011, 7:09 AM EDT
By Andrew Davis

July 12 (Bloomberg) -- The plunge in Italian markets overshadowed policy makers’ efforts to fix Greek finances as the euro-region’s debt crisis infected Europe’s largest borrower.
Italian bonds fell for a seventh day and the nation’s borrowing costs jumped by more than half at an auction of 6.75 billion euros ($9.4 billion) of bills today. Stocks pared declines after falling to a two-year low. Warnings by Moody’s Investors Service and Standard & Poor’s over Italy’s ability to trim debt, coupled with infighting in Silvio Berlusconi’s government over a budget-cutting plan, fueled the sell-off.
“Italy coming under severe market pressure, being the third-largest economy and a founding member of the EU, signals that the sovereign and banking crisis has reached a deeply systemic phase,” Vladimir Pillonca, an economist at Societe Generale SA in London, wrote in a note to investors today.
The rout in Italy underscored Europe’s inability to contain the crisis that began in Greece in October 2009 and led to bailouts in Ireland and Portugal. Finance ministers last night failed to agree on how to share with creditors the cost of a second bailout for Greece to be financed primarily by its European Union allies, including Italy.
...The yield on 10-year Italian bonds rose 7 basis points to 5.76 percent, after reaching 5.96 percent earlier, the highest since 1997. The yield premium investors demand to hold the debt over German bunds to a euro-era reached a euro-era record 348 basis points, before narrowing to 311.

...Trading in shares of UniCredit SpA, Italy’s biggest bank, had to be suspended limit down after the stock plunged more than 7 percent, pushing the benchmark FTSE MIB index down as much as 4.8 percent. UniCredit, one of the biggest holders of Italian bonds, pared losses and advanced 4.5 percent to 1.206 euros as of 11:40 a.m. in Milan. Even with the rebound, UniCredit has fallen by 22 percent this month, shedding about 9 billion euros in market value.

...Italian bond yields are nearing “disaster,” according to Gary Jenkins, head of fixed-income at Evolution Securities Ltd. Greece, Ireland and Portugal all sought international assistance after their 10-year yields rose past 7 percent.
Italy has more than 500 billion euros of bonds maturing in the next three years. That’s about twice as much as the 256 billion euros extended to Greece, Ireland and Portugal in their three-year aid programs.
At almost 120 percent of gross domestic product, Italy’s debt is the EU’s second largest by that measure after Greece. Its 1.8 trillion euros of borrowing in nominal terms is more than the combined debt of Greece, Spain, Portugal and Ireland.