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Presenting The Irish Bailoutees: A Redux
Since once again we may have been a little too far ahead of the curve in demonstrating just who the biggest beneficiaries of the Irish taxpayer funded bailout are, we would like to repost an analysis from over a month ago presenting the key bondholders in Anglo Irish bank, who incidentally happen to be the cross-holders across most of the Irish capital structure, and which banks will likely be next in line for the bailout wagon. Not surprisingly, there are some names here (especially one) which Zero Hedge readers are all too familiar with.
Are Irish Taxpayers About To Bail Out Goldman? Is Peter Sutherland Stealing From His Own People To Give To The Vampire Squid? (Zero Hedge, October 17, 2010)
It is deja vu all over again. To little media fanfare the dire
financial situation in Ireland is nothing less than a repeat of the
Lehman collapse in those dark days of September 2008. With the recent
nationalization of half of the country's six big banks,
and the blanket guarantee over the rest of them, the Irish government
has effectively made sure that bondholders in all banks, even those
which such as long insolvent Anglo Irish bank will be made whole by the
long-suffering Irish taxpayers. And despite rumors of haircuts for at
least sub debtholders, actual facts validating this possibility remain
unseen. Which begs the question why is everyone in the world so
terrified of taking mark to market losses on even a few billion in debt?
Simple: as all of the world's banks, but Europe more so than anyone
else, are now caught in the biggest circle jerk ever imaginable, with
one entity's liabilities making up another's assets, which in turn are
someone else's liabilities, and so forth in a MC Escher (or is that HR Giger?)-esque flow chart of the surreal (as can be seen here),
even one dollar of write downs can spiral and affect tens if not
hundreds of billions of downstream assets (and thus liabilities). Which
explains why the ECB and everyone else in Europe is so intent on
preventing a failed auction in Ireland (we previously disclosed that virtually every September auction of
Irish bonds was purchased by the ECB, either directly and indirectly):
should the banks that are on the hook actually validate their
impairment, Europe is one step away from activating its own $1 trillion
TARP package. Yet what is amusing is that inbetween the cracks of
exclusively European-bank based senior and subordinated bondholders in
such bankrupt banks as Anglo-Irish, a familiar name emerges: Goldman Sachs.
Yes,
nested quietly inbetween the €4,034,756,880 in face value of Anglo
Irish bondholders is the name that managed to pull the strings (via its puppet Hank Paulson)
and get bailed out when AIG threatened to make Goldman management and
investors insolvent. Is Goldman, via its UK-based Goldman Sachs Asset
Management Intl. subsidiary, currently petitioning Brian Lenihan to be
the only US-based bank to receive a direct bailout on its Anglo bond
position? Or is it, as always behind the scenes, negotiating on behalf
of 80 other European banks, among which Lombard Odier, Rothschild, and
Deutsche, and achieve what it always succeeds in: escaping scott free,
and stuffing taxpayers with the bill? We are confident Irish taxpayers,
and drivers of cement trucks, would be fascinated in getting the correct answer.
Guido Fawkes, who managed to obtain the Anglo Irish bondholder list, shares the following commentary:
Anglo-Irish
Bank did not represent a systemic risk to the Irish economy, it wasn’t a
high street bank like AIB or the Bank of Ireland. If it had been
allowed to go the way of Lehmans the only losers would have been
shareholders and bondholders. The Irish state stepped in and
nationalised a bank that was basically run by crooks lending to property
speculators. The Irish people are taking losses that should rightly
have been shouldered by bondholders.Every child in Ireland is
being bequeathed a huge debt at birth to protect the interests of
foreign, mainly German, bondholders – why? Guido was once a bond trader,
it was always understood that sometimes the bond issuer defaults. That
is the risk investors take.So why is Dublin’s political
establishment so keen to protect foreign investors at the expense of
future generations? Guido has obtained the list of foreign Anglo-Irish
bondholders as at the close of business tonight. These are the people
whom Dublin’s politicians really seem to care about.Between them
they hold Anglo-Irish bonds with a face-value of €4,034,756,880.
Shouldn’t they take the hit rather than future generations of Irish
taxpayers? Capitalism is a system of profit and loss, they took the risk
of investing in Anglo-Irish Bank. Is the Irish government under pressure from the European Central Bank in Frankfurt to protect German investors?
Spot
on question. And as the highlighted area in the chart below
demonstrates, we would like to add Goldman Sachs to the list of
bailoutees. Surely, few firms in the world deserve to be redeemed as
much as god's little helpers.
Little else that can be added here... except for this amusing anecdote of another Goldman Sachs International Chairman, one Peter Sutherland,
former Ireland attorney general and EU commissioner who just so happens
was a chairman of British Petroleum (remember those guys?) previously.
To wit from the Irish Times:
[Sutherland] and [recently heckled] Lenihan have remained in contact through the financial crisis. On one occasion,
Sutherland visited Lenihan to tell him what a great job he thought he
was doing and to say that Lenihan had the potential to be one of the
great taoisigh of the 21st century. Lenihan was taken aback, he says.
Surely,
this great son of Ireland, who obviously has Lenihan in his back
pocket, is in active negotiation on behalf of his current employer,
Goldman Sachs. Yet something tells us Mr. Sutherland will be the last
person to share light on Goldman's twilight relationship vis-a-vis the
Irish government.
One
look-back Sutherland opposes is the banking inquiry. This is hardly
surprising from a former chairman of AIB who appeared at the 1999 public
inquiry into the Dirt tax evasion scandal.“It would
have been better not to have an inquiry at this time because we have
limited resources and a diversion of those limited human resources into
an ex post facto analysis of the past is far less important than
remedying the immediate problem that we have now,” he says.“It
is a very difficult subject and to have all of these civil servants
sitting in listening to bloody evidence on the past when they all know
broadly what happened. We know what happened – we know it all. A
political football is not what we need. We need to look to the future to get it right.”
Lack
of revisionism is not too surprising coming from a person whose
personal, and future, fortune, is based on the past generosity of
American, and now Irish taxpayers. Because his wealth is certainly not
due to his skill at anything related to his actual career:
Sutherland
was also a board member at Royal Bank of Scotland (RBS) during the
financial meltdown when the UK bank collapsed into state arms after a
frenetic, debt-fuelled growth. Of the bank’s 2007 role in the
€71 billion acquisition of Dutch bank ABN Amro, the biggest ever banking
takeover, Sutherland says it made “the mistake of buying at precisely
the wrong time when the world was falling off the back of a bus”.
Perhaps
instead of driving trucks full of cement into Parliament, Irish
taxpayers can be a little more proactive, and ask one of their most
respected "leaders" just on whose behalf he is working on in this latest
bailout, which could easily be Ireland's last.
h/t Niall
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Aka Bill Murray in "Groundhog Day" redux.
http://www.imdb.com/title/tt0107048/
What we need are some armed and motivated Groundhogs, Euro division.
Sorry to be critical my friend, the photo is of a Squirrel ha! I do get your point, when will everyone say enough is enough, fuck the banksters! When does that tipping point occur? With the 1770's North American it was that one extra tiny tax, with the French is was just debt or Voltaire? Can we even distill revolution to a single event? I would think it would take an event of proportion to the pain of the lower and middle class that touches off the revolution? Is it only the pain of the middle class that in the end is the event? I work in science so always seem to drift to the cause and effect of failure. Is it possible that this could continue? Debt can not solve a debt problem? I have never solved a problem with the same problem in my life. Iceland seemed to deal a death blow to the blowhards in their gov. when they attempted to shift bank debt to the taxpayer and yet the Irish seem to roll over as we did shouting from under the bed please don't fail us banksters. Is the tipping point the failure of Spain? Even that now seems unlikely with the Irish rollover on corporate taxes for Google, Microcrap held to 12.5%. Could you even write a script like this with taxpayers around the world taking it up the ass without protest? Where is Max Robespierre when you need him?
Busted!
I couldn't find an image of an armed groundhog so I took the liberty of substituting and lying through my teeth. Almost worked until you pulled the sheets off me. :>)
Actually, I think it's a gopher..
I've been wanting to use this for sometime:
http://www.youtube.com/watch?v=y8Kyi0WNg40
http://21stcenturycicero.wordpress.com/fraud/how-benjamin-franklin-made-new-england-prosperous/
.
Looks like a prairie dog to me.
Some of the laddies been fightin' fer Ireland's freedom a long time, and this new invasion methinks shall not be met with a lesser posture than past others who've since vacated thier sortid claims.
GS is the reason there will be no riots. Their actions have been so egregious, so bold, so arrogant that even the MSM has dipped it's pen into the blood. Yet the sheeple keep grazing.
The Irish get sold down the river and there's no outcry from the masses? How soon they forget the virtual slavery in British colonial times. When the realization finally hits, I wouldn't want to be a banker in Ireland. The Irish temper is legendary; it would be nice to see it morph into real action.
There is a march tomorrow. We will see what kind of numbers.
This is becoming a crusade against the squid devil!
Peter Sutherland is a corrupt, self-serving gobshite of a man and shouldn't be allowed anywhere near politics.
worth a read - http://golemxiv-credo.blogspot.com/2010/11/who-bankrupted-ireland.html
Good read, thanks.
"So let's return to our question? Whose fault? Would Germany be right to be bitter about Depfa/Hypo and others? Or does the blame lie with the Germany banks and Bankers who flew to Ireland to do their mess? Is it Ireland's banks mess or Germany's? I don't think we can disentangle the blame.. maybe when the Irish Banks' books are finally opened we could. But I bet you no one outside the top bankers and politicians, the people who oversaw the creation of the bomb in the first place, will ever be told what's really in there.
I can't say and neither can you, if the losses are Irish or German. But we can say, the losses never were, and should not ever be, yours and mine. We, the people, who were told nothing, were not asked nor consulted, whose laws were either ignored, set aside or re-written, we should not be expected to pay for those losses now.
They are bankers losses. It is NOT a question of Irish or German. It is question of wealthy bankers from all countries not just Germany (almost every nation, Germany, America, Russia, France Britain, we did dirty work in Ireland) and their corrupt Irish helpers versus the people. It is not a question of should the Irish people or the German people pay. Neither people should. It should be the bankers who made the losses who should take them.
DO NOT allow the bankers to set us against each other as a cover for their crime and guilt."
.
that says it all!
This needs more reporting. Thanks Tyler for reminding us of the tyranny the banksters put on the people.
And what happens to the Corporate Tax laundry courtesy Irish Corp Tax rates, John Chambers wishes to know.
The Irish should create a new monument for their traitors. Call it the Baloney Stone. On it will be inscribed the names of all those politicians and banker sympathizers that have betrayed the Irish people with their sellout to the euro banksters. People can come from miles around just to rub their clothed behinds on the stone. They can hold elections for entries to be added onto the stone in poopetuity.
No rubbing on bankster filth. Chisel names on a stone that people can piss on for the generations that will have to pay for the criminal debt makers.
The Baloney Stone should have the names of all the citizens who gathered in pubs to complain but did nothing.
I'm fed up of hearing this shit! Tell me, what are YOU doing? There is nobody on this planet not affected by the banks crusade of corporate slavery! Are you immune? I doubt it! We have protests, we have acts of vandalism, planned bank runs, the government will be changed, we have sien fein winning a by election with strong numbers. These things take time.
Where are you from? What's happening in your neck of the woods. (please, if you're from the USA don't even bother answering or I'll rip you a new one!)
The Irish seem to be being held up as the ones to stop the rot, this is humanities fight, it is not restricted by sovereignty. Step up or shut up!
Debt fueled growth. Says it all.
What do you get when you have a bunch of drunken, unemployed, disgruntled Irish men at a bar?
An IRA bomb making party.
Europe "doesn't have the trillion." That's what Spain costs. And "war on the Korean Penninusla" could be imminent. Game, set, match....
China's diversion to keep the West tolerating their mercantalism and theft of middle class jobs.
Does anyone really think that the little tinpot dictator does anything without the nod from Bejing ?
"No matter how cynical I get, I just can't keep up." Lily Tomlin
Love this quote. Feel that way myself.
I too.
"Vampire squid.... on the face of HUMANITY" - Taibble hit the nail on the head. Not USA, not North America. This is one criminal banking network, and Goldman is curently the head of the family.
Goldman Sachs is there, but which is its share of the bonds? I mean, I'm sure they've got their tentacles pretty almost everywhere, so finding them in this list might not be very signifficative...
Bank run for december 7th!!!
At least Ireland has the very best advice
Rothschild replaces Merrill as State's adviser on sector crisis ...
I wonder what will happen to this banks Gold holdings when Ireland implodes..... Hmmmmm...... I wonder.
unfuckingbelievable.
Anglo would probably have taken down AIB and BoI with it, so the original pressure to save it probably came from the Irish banks more than anywhere else. As to Sutherland, to be fair, his actual profession is political backslapping and wheel-greasing with a bit of law on the side, and there's every indication he's very good at those. He leaves the finance, drilling operations, risk managment, regulatory compliance, safety and so on to others.
Thank you zero-hedge and bloggers. I finally understand what is happening now. It will be very difficult for me to continue paying my taxes to these thieves. I doubt that 10% of people understand what is happening. If people really understood that their money is going to pay off other peoples bad bets(and that is all this is)they would be as infuriated as I am now. This needs to become a revolution.
f*ck the squid
this needs to be sent to every irish taxpayer
Lets hope the IRA can do something constructive
a good banker is a dead banker
Oh, boyz. Glad you have sympathy for the Irish and all but who do you think guarantees all the MBS the Fed bought from the banksters and put on their balance sheet? Why, Fannie and and Freddie, of course. And who covers all the Fannie and Freddie losses that will continue to bleed red in perpetuity? We do.
@" bleed red in perpetuity." a family member had that once
but it cleared up on it's own.