“Three `Anglo Irish Bank Executives’ Connected to `€625 million in Loans’ made to `Wealthy Clients in a Scheme’ which `Attempted to Prop-Up Bank in 2008 Financial Crisis”

#AceFinanceNews says `Men who Broke Irish Banking System in Court over Loans-for-Shares Scandal’

Published time: February 06, 2014 10:30
Reuters / Cathal McNaughton / FilesReuters / Cathal McNaughton / Files
Three Anglo-Irish Bank execs face 16 charges connected to €625 million in loans made to wealthy clients in a scheme which attempted to prop the bank up during the 2008 financial crisis. This marks the start of the Ireland’s biggest corporate legal trial.

Sean Fitzpatrick, the banks’ former chairman, Pat Whelan, former Chief Financial Officer, and William McAteer, former finance and risk director, “broke Irish company law” in 2008 when issuing loans to a group of wealth investors, which included Ireland’s once-richest man Sean Quinn, in order to buy shares in Anglo-Irish. The scheme was an attempt to cut down the nearly 25 percent share Quinn held in the bank, because the bank was worried about being“exposed to the fortunes of one man,” according to prosecutor Paul O’Higgins’ opening statement.

Whelan faces additional charges connected with altering loan documentation.

All three men have pleaded not guilty to all the charges. The case is drawing lots of public attention with hundreds outside the Dublin Central Criminal Court on Wednesday. The trial is expected to last for months.

Former chairman and chief executive of Anglo Irish Bank Sean FitzPatrick leaves the Criminal Courts of Justice in Dublin, Ireland on February 5, 2014 after a hearing at the start of his trial. (AFP Photo / Peter Muhly) Former chairman and chief executive of Anglo-Irish Bank Sean FitzPatrick leaves the Criminal Courts of Justice in Dublin, Ireland on February 5, 2014 after a hearing at the start of his trial. (AFP Photo / Peter Muhly)

“There is no doubt that this lending was not in the normal course of the bank’s business but was lending in very extraordinary circumstances,” O’Higgins, told a 15-member jury. Normally the jury is 13 members, but it is larger for this case as it is expected to be lengthy.

The bank played a huge role in nearly bankrupting the country, which was forced to accept a €67.5 billion bailout from European lenders during the banking crisis of 2008-2009. Taxpayers provided Anglo-Irish with €30 billion to keep the bank solvent.

Anglo-Irish has been renamed the Irish Bank Resolution Corporation, and is still in the process of being liquidated, as the austerity-hit country awaits a number of high-profile cases involving the collapse of the bank.

A separate case against executives recorded joking about how they duped the government to give them bailout money with no plans to pay back, is still under investigation.

Recession exit

Ireland is the first country to exit its 85 billion euro bailout program, which it entered in 2010 when the country was on the brink of bankruptcy. The parliament’s plan is to use the euro bailout money to recapitalize the country’s banks, but court cases against the banks could reverse it.

Ireland’s economy is predicted to grow by approximately 2 percent next year. Unemployment is beginning to fall to below 13 percent – after reaching 15.1 percent at its highest last year.

Prior to the financial crisis, Ireland held a “triple A” rating, signifying the highest quality and lowest credit risk. The country is now regarded as a lower risk investment by the big three credit rating agencies for the first time since 2011.

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#acefinancenews, #anglo-irish, #anglo-irish-bank, #criminal-courts-of-justice, #dublin, #ireland, #irish-bank-resolution-corporation, #sean-fitzpatrick, #sean-quinn

” How Close To The Edge Are We To Falling Off “

As each eurozone country in turn finds that they are deeper in debt than they first believed, we hear today that the bailout for Greece has made them worse off. Maybe and it is only a suggestion we should leave well alone and maybe just maybe it will sort it self out.

As we know many things in this world always do, l was taught as a child ” Leave Well Alone” l never found out who well was but before l could someone else we call a dogooder interfered and all was undone -ah well.

Amplify’d from www.bbc.co.uk

The European Union’s economic affairs commissioner has said Europe must “resist alarmism” amid the latest fears over the Irish Republic’s debts.

He told ministers his country was working with European partners to deal with the debt issue.

He also reiterated that the Republic of Ireland had not asked for bail-out money and that the Irish economy was well funded until next year.

Mr Cowen tried to play down the growing sense of crisis across the eurozone, telling the Irish parliament that these were just a continuation of ongoing discussions it had been having with European institutions for some time.

Having spent the last 36 hours in Dublin I can report a sense of deep resentment at the pressure being put on the Irish government. Ministers genuinely believe they have a strategy that can work”

But he added: “We all have to work together in order to survive with the eurozone, because if we don’t survive with the eurozone we will not survive with the European Union.”

When Ireland explicitly guaranteed the Irish banking system just over two years ago, the finance minister, Brian Lenihan, said it was ‘the cheapest bank bailout in the world’. It is turning out to be very expensive”

Read more at www.bbc.co.uk

 

#bail-out, #banking, #eu, #eurozone, #ireland