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Exclusive: Recording Of Brian Lenihan's Citi Conference Call With Perturbed Investors

Tyler Durden's picture




 

This weekend's chief financial tragicomedy was without doubt the busted conference call conducted by Citi, in which Ireland finance minister Brian Lenihan ended being heckled openly by a roster of about 200 people, who were a little late in realizing that the operator had forgotten to mute all their lines. This was described previously in painful detail by the Telegraph. And while Ireland is still refusing to acknowledge that anything out of the ordinary happened, and Citi has most certainly deleted any copies of the first part of the conference call, the second part of the call was obtained by Zero Hedge. What is obvious from the call is the extreme sensitivity the operators and organizers have toward any open line, while proffering extreme apologies for the confusion that was prevalent on Part 1 of the call, which apparently lasted for 45 minutes (the entire call ended up being one hour thirty minutes, after it was supposed to be half that duration). Furthermore, if as Ireland claims none of the alleged shenanigans occurred, then why is the first thing uttered by the moderator his "profound apologies for the foul up that the conference provider has had earlier." As for the call itself, we fail to see how someone who claims there is no local deposit drain (like in Greece) due to "Ireland being an island" and thus making deposit evacuation difficult, is supposed to calm investors and result in tightening spreads. Although, as we disclosed earlier, the ECB's €1.4 billion in sovereign bond purchases last week, successfully unraveled that particular mystery as well. For all this, and much more, as well as a rather amusing Q&A, the link to the entire call is attached below.

Link to Citigroup Brian Lenihan conference call with perturbed bond investors

 

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Mon, 10/04/2010 - 13:46 | 624075 FOC 1183
FOC 1183's picture

Ireland, much like Guam, could easily tip over and capsize

Mon, 10/04/2010 - 13:54 | 624090 hedgeless_horseman
hedgeless_horseman's picture

More probable 'cause the bottom is Cork.

Mon, 10/04/2010 - 14:45 | 624185 tmosley
tmosley's picture

Well, at least the will leave the Dork on top.

Mon, 10/04/2010 - 15:51 | 624347 Cognitive Dissonance
Cognitive Dissonance's picture

BTW where is ZH's The Dork of Cork lately

Mon, 10/04/2010 - 14:01 | 624105 gwar5
gwar5's picture

LOL!

Mon, 10/04/2010 - 14:35 | 624164 outamyeffinway
outamyeffinway's picture

Thanks!

Mon, 10/04/2010 - 20:15 | 624734 StychoKiller
StychoKiller's picture

we fail to see how someone who claims there is no local deposit drain (like in Greece) due to "Ireland being an island" and thus making deposit evacuation difficult, is supposed to calm investors and result in tightening spreads.

I envision folks stuffing Euros into their DSL MODEMS, thus putting the lie to this statement!

Mon, 10/04/2010 - 13:47 | 624078 Rusty Shorts
Rusty Shorts's picture

LMAO

 

Permanent Vacation

http://www.youtube.com/watch?v=jPhWZmTSVhM

Mon, 10/04/2010 - 14:12 | 624107 Cognitive Dissonance
Cognitive Dissonance's picture

Abbott & Costello's "Who's on First?" Citi style without the laugh track.

I suspect they won't ever again have problems with that damn "mute" button. It's so messy when you let the actual plebs speak.

http://www.youtube.com/watch?v=sShMA85pv8M

http://www.youtube.com/watch?v=wfmvkO5x6Ng&feature=related

The treatment of the minister, which comes as Ireland faces a standoff with a group of hedge funds over its rescue plan for Anglo Irish Bank, will increase tensions between the country and the debt markets.

Mr Lenihan had been speaking for less than two minutes on Friday before a mistake by Citigroup meant that the bank's clients were all able to be heard on the line.

Between 200 and 500 investors are understood to have been on the call, and as they realised their lines were not muted many began to heckle Mr Lenihan.

Some traders began making what one banker on the call described as "chimp sounds", while another cried out "dive, dive". A third man said "short Ireland" before adding "why not short Citi too?"

The call with Brian Lenihan and hundreds of investors rapidly descended into farce, forcing Citigroup, which staged the event, to pull the plug.

As the call descended into chaos, with one participant heard to say "this is the worst conference call ever", Citigroup officials shut down the line.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8038000/Irelands-finance-minister-Brian-Lenihan-ridiculed-by-City-investors.html

Mon, 10/04/2010 - 14:13 | 624129 carbonmutant
carbonmutant's picture

Everything was okay as long as they were yelling "dive, dive" and "short Ireland" buy when they started saying "Why not short Citi too?" they pulled the plug...

Mon, 10/04/2010 - 14:16 | 624135 Cognitive Dissonance
Cognitive Dissonance's picture

LOL

I can only imagine what the "chimp sounds" were like.

Google "chimp sounds" and this story in the LA Times is already number one.

Mon, 10/04/2010 - 14:01 | 624108 gwar5
gwar5's picture

God loves the Irish. He just forgets about them from time to time.

Mon, 10/04/2010 - 14:29 | 624152 Uncle Remus
Uncle Remus's picture

LOL

Mon, 10/04/2010 - 14:03 | 624111 TheGreatPonzi
TheGreatPonzi's picture

"Please make sure every caller is on mute" 13:30

Lol

Mon, 10/04/2010 - 14:04 | 624113 kathy.chamberli...
kathy.chamberlin@gmail.com's picture

oops.

Mon, 10/04/2010 - 14:10 | 624122 carbonmutant
carbonmutant's picture
Ireland's finance minister publicly ridiculed on an investor call intended to calm fear over the country's economic woes.

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8038000/...

Mon, 10/04/2010 - 14:11 | 624127 kprich
kprich's picture

I live in Ireland, the official "international" state of denial- Here is how the Irish Times characterizes Lenihan's treatment-

 

 

A spokesman for the National Treasury Management Agency, which organised the conference call with the Minister, said technical issues arose at the beginning of the call when a Citigroup executive was introducing the call. "There was an element of silly messing by various participants in the call when they realised that they could be heard," he said. However, the spokesman said that no comments were directed to the Minister or about Ireland during the technical glitch. "To suggest otherwise would be completely misleading," he added.

http://www.irishtimes.com/newspaper/finance/2010/1004/1224280310692.html

 Yeah, SILLY MESSING- there is some Irish precision for you!

Mon, 10/04/2010 - 14:25 | 624145 jbc77
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Awesome stuff boys. ZH fucking rocks. A beacon of light in a world full of lies.

Mon, 10/04/2010 - 14:42 | 624175 Plainview
Plainview's picture

Deposits won't flee because Ireland is an island?

You have got to be fucking kidding me.

Mon, 10/04/2010 - 14:46 | 624189 traderjoe
traderjoe's picture

It's like suggesting you understand foreign policy because you can see Russia from Alaska. 

Mon, 10/04/2010 - 14:47 | 624190 hedgeless_horseman
hedgeless_horseman's picture

Ireland is still only part of an island, so maybe only part of the deposits will not flee?

Isn't it about time the Brits gave up on colonialism? 

Mon, 10/04/2010 - 18:39 | 624631 Andrew G
Andrew G's picture

You don't understand because the article didn't reveal this crucial piece of highly classified info: the Irish government has already ordered all Irish ships, boats and even bathtubs to be scuttled, so the money can't flee from the island. Not that the bathtubs were in use anyway. And no, there's aren't any Irish airplanes if you wondered. It's rumoured that there's an airfield near Dublin but that could be just a plain field with lots of air on it.

BTW, will the asshole who junked you please stand up... be a man(ly asshole), not some spineless pussy.

Mon, 10/04/2010 - 14:45 | 624184 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

A voice of common sense and reason amoungst all the current insanity,Irish Economist David McWilliams points out the economically suicidal policy of guaranteeing the losses of the Irish banks by the government:

http://www.davidmcwilliams.ie/2010/09/29/we-must-face-reality-and-end-bank-guarantee

http://www.davidmcwilliams.ie/2010/10/04/no-hope-for-blind-optimism

Mon, 10/04/2010 - 15:20 | 624269 M.B. Drapier
M.B. Drapier's picture

As for the call itself, we fail to see how someone who claims there is no local deposit drain (like in Greece) due to "Ireland being an island" and thus making deposit evacuation difficult, is supposed to calm investors and result in tightening spreads.

OMG. Not only is the Republic of Ireland A) 1-2 hours from Britain by cheap flight, it also B) shares a land border with the UK, and C) there are 236 branches of RBS right inside the country. (So still a dodgy bank, but at least it has a bigger sovereign behind it.) The wonder and mystery of it is that indeed there hasn't been dramatic deposit flight to date.

Mon, 10/04/2010 - 15:40 | 624313 UninterestedObserver
UninterestedObserver's picture

Because everyone there is already broke?

Mon, 10/04/2010 - 20:19 | 624737 StychoKiller
StychoKiller's picture

Wow!  There's this new-fangled invention called a "Wire-transfer!"  Are these injuts 200+years behind the times or what?

Mon, 10/04/2010 - 15:43 | 624324 davidsmith
davidsmith's picture

When will Lenihan be found hanging from a bridge?

Mon, 10/04/2010 - 16:13 | 624397 wgpitts
wgpitts's picture

test

Mon, 10/04/2010 - 16:32 | 624423 Lord Welligton
Lord Welligton's picture

At 0:55

 

“I’d like to thank Minister Lenihan and John Corrigan Chief Executive of the NTMA for very generously giving themselves (eh) up (eh) making themselves available today.”

 

Slip of the tongue?

Mon, 10/04/2010 - 16:43 | 624448 Lord Welligton
Lord Welligton's picture

At 1:06

“I think throughout the current crisis the commitment of the Irish Government and the NTMA to a policy of transparency and open dialogue with international investors has been truly outstanding .... “


Their commitment to keeping the Irish people in the dark and feeding them shit has also been truly outstanding.

Mon, 10/04/2010 - 17:08 | 624497 Lord Welligton
Lord Welligton's picture

@ 7:17

Minister for Finance Brian Lenihan.

“Our other quoted institution Irish Life (he shortens the true name “Irish Life and Permanent”) didn’t ... inaudible ... which continues to be quoted on the stock exchange and is trading in the normal way ... it doesn’t, it didn’t have property exposure....”

 

Someone needs to tell the Minister that Irish Life and permanent has a balance sheet of €80bn, €35bn of which is residential mortgage loans and €2bn is commercial loans.

That’s close enough to 50% of the balance sheet.

Perhaps the Minister believes that there will be no write downs of residential mortgage loans.

http://www.irishlifepermanent.ie/~/media/Files/I/Irish-Life-And-Permanent/Attachments/pdf/annual-and-interim-reports/2009/annual-report-low-res-irish-life.pdf

 

 

Mon, 10/04/2010 - 17:55 | 624573 bugs_
bugs_'s picture

THANK YOU TYLER you rule as always.

Mon, 10/04/2010 - 20:21 | 624738 StychoKiller
StychoKiller's picture

Another "Emperor" whips off his jacket to show off his new duds!

Mon, 10/04/2010 - 20:36 | 624753 Buck Johnson
Buck Johnson's picture

This is funny as hell, the investors actually called this financial minister of the country out.  I see why they are mad, because Ireland wants to give them a haircut on the money they are owed and they don't like it.  I bet that haircut was more like 50% off.

Mon, 10/04/2010 - 22:50 | 624978 Coldfire
Coldfire's picture

The real chimp sounds were the words coming out of Lenihan's mouth.

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