Oh No! Is It Possible? A 3rd Irish Bank With Hidden Charges Not Revealed In Its Annual Reports?

Reggie Middleton's picture


On March 31st, I illustrated how the concealment of excessive encumbered items probably contributed greatly to the premise of Anglo Irish bank, not to mention the demise of practically all of that bank's investor's capital as well. On April Fools Day I  illustrated how AIB did the same thing, to the dismay and consternation of all of those who believe that Irish banks are the cleanest institutions in the austerity laden west. Now, it appears that the AIB revelation was quite controversial, with politicians reaching out to me from Germany to Mother Ireland herself. I can understand the feelings of consternation, for unlike Anglo Irish, Allied Irish Banks is still an ongoing concern, taking deposits and making loans as one of the largest institutions in Ireland. 

The problem with both of these companies is that they have instituted blanket charges over the vast majority (if not practically all) of their assets, yet they failed to accurately and clearly state this in their financial reporting. The misrepresentation/omission as I see it, is gross and very, very material - potentially encompassing tens of billions of euros - per institution! I query: How many important (or worse yet, systemically important) banks can one find that have not disclosed such encumbrances fully and accurately to the public before it becomes evident that the public, regulators and quite likely those that conducted the stress tests for said banks, may not have a accurate picture of the Irish banking system's true condition? And if the Irish banking system is more encumbered than previously believed, and if the Irish banking system was bailed out (2x) by the Irish taxpayer, and the Irish taxpayer was bailed out by the EU taxpayer/Troika, then isn't the Irish taxpayer/EU taxpayer potentially unaware of further bank bailout tax bills coming down the pike? Is Ireland as a sovereign nation in much weaker condition than we have been led to believe since it essentially bought these bailed out banks under the (potentially mistaken) guise of having fixed them? Will the Irish get Cyprus'd when those that run the Troika demand more for a kilo of bailed out flesh?

I will explore this question further over my next few posts, but for now I query...

Who's next in line?

About Irish Life and Permanent Plc


Irish Life and Permanent has charges registered (see documents below) with the Irish Companies Registration Office (CRO).  The bank gave a first floating charge in favour of the Central Bank of Ireland (an arm of the European Central Bank) and the Financial Services Authority of Ireland encompassing “all its right, title, interest and benefit, present and future, in and to each of the securities of such a class or description as may from time to time be designated by the European Central Bank as eligible for sale and/or purchase, as the case may be, by the Bank under its standard form for the time being of Master Repurchase Agreement, which specification may be made by reference to particular classes of repurchase transactions, and which are included in the schedule of Eligible Securities provided to the Bank from time to time.”.  

These charges were registered with the CRO on 15th February 2008, yet there is no mention whatsoever of these charges in the Banks 2008 Annual Accounts (see attached).


In 2008, Irish Life and Permanent traded ADR’s in the U.S. under the symbol ILPYM. These ADR’s were traded OTC, giving the SEC jurisdiction over this company.

The bank gave a first floating charge in favour of the Central Bank of Ireland (an arm of the European Central Bank) and the Financial Services Authority of Ireland U.S. investors would have had to rely on the contents of Anglo Irish Bank’s 2008 Annual Accounts which, in my opinion and according to my research, concealed the existence of the CRO registered charges above. I have made a copy of the 2008 Annual Accounts for this company available for any and all who wish to discover for themselves whether these charges were properly disclosed. After all, you never know... I may have overlooked them.

These charge documents have also presumably not been included in the recent bank ‘stress testing’ conducted by the European Banking Authority. 

If you have believe that the information below actually identifies a gross misrepresentation of fact, omission or outright fraud, simply contact the SEC and let them know that Reggie Middleton suggested they look into it. You can actually use this form to convey my message. For paid subcribers, I've posted another potentially "Cyprus'd" EU bank with shortable US/LSE traded shares/options for subscribers, reference EU Bank Capital Confusion, Part 2 - Malarkey (you may subscribe here). There will be another bank added within 36 hours.

Here's that interest rate calculator from EU Bank Depositors: Your Mattress Is Starting To Look Awfully Attractive - Bank Risk, Reward & Compensation . It shows how much interest you should be getting in return for the banking risk that you are taking.



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shovelhead's picture

Kinda like Obamacare...

You gotta bail em to know whats in em.

Ourrulersknowbest's picture

To be honest I don't fully understand the premise on obamacare.on the surface from a distance it looks like it has merit,but am I right in thinking it hands a blank cheque to certain insurance companies?

roadhazard's picture

No, insurance companies are affected the most because now the Government has entered the market as another insurer of the general public. Now insurance companies have to compete instead of collude. That is why they are selling the FEAR the most. Hospitals and drug companies are the winners.

Ourrulersknowbest's picture

Who pays? Or is that a stupid question?
Fear is a politicians wet dream.
If you shout at
A flock of sheep you spook em.
Then you herd em.
Then you eat em....

roadhazard's picture

Repubicans will tell you it's "free" health care but like everything else they sell the woof tickets too. If you work for an employer that has more than fifty employees the employer has to contribute to the workers health care. Most do now already but they have been led to believe they are going to have to pay through the nose. I will believe it when I SEE it.

As for individuals not covered by an employer you also have to pay but to the Government and on a graduated scale according to your means with the Government subsidizing the rest. Yes, even the people that have No means are going to be able to get health care in America without the insurance companies charging me a bigger premium because they don't have health care. Repubicans hate that apparently, that money could be well spent on another war or two for God sake.

Iconoclast's picture

So what's your conclusion Reggie, Ireland to go Cyprus, or given that its the poster boy for troika style salvation (with a little bit of 'help' from the uk) it'll be glossed over and piled with more debt?

Ourrulersknowbest's picture

It will be more debt.our leaders will frighten the shit out of people with tales of DOOM if we stray off the path that has been so wisely chosen for us.the last "good deal" we got involves a forty year period to pay this crap off.they actually sold it to us as a good deal.and you know what?
People actually believed it?you couldn't make it up.
Our best hope is that the whole house of cards falls soon before our dipshit leaders do any more damage.

GottaBKiddn's picture

Reggie, the man with the golden shovel.

El Diablo Rojo's picture

Damn Reggie, why ya gotta keep digging under the festering scabs?  Seriously nice job.

Ourrulersknowbest's picture

If you rip off a scab,blood flows,clots and wound heals.simples.
What Ireland has done is go for the forty year slow infected wound treatment that ze Germans have prescribed for us.And we smilingly signed up for it!
Jesus now I need another whiskey!

irishlink's picture

Do not worry. The Gathering will save us all and show all the people of the world that Ireland Inc is kicking whatever about alive. But remember we are just a tiny fraction of the EU . What if French. UK, Italian , Spanish , Portuguese banks are even more rotten, then WE HAVE a problem.

Ourrulersknowbest's picture

If we could just get all the corrupt dickheads in politics and banking and the unions who are trying to kill our country and gather the shit out of them over the cliffs of moher,it would fix none of our problems,but it sure would be satisfying start.

Vegetius's picture

Outstanding work Reggie! Small time, that’s what these guys are all about. Anyone who thinks that Ireland is OK in the financial sphere is crazy. The problem in Ireland is clientalism  to get on in Ireland you need to be in the right school and connected to the right families, these people always cover for each other which in a boom market is fine as the money is there to cover errors. Now we have successive Irish Governments throwing away their cards that they held and going down the road of ass-kissing their EU masters to save them, not the people, only them. Let’s keep in mind that close to 75% of the Irish parliament are related to each other.

The majority of the members of the Irish parliament are professional politicians, in the sense that otherwise they would not be given jobs minding mice at crossroads.

-          Flann O’Brien

Same goes for the rest of the elite in Ireland especially the banks and accountancy firms that work with them, same names, same links. These Gombeen men the groggy patriot, publican, media-man or lawyer who is married to the TD’s half-sister and is a second cousin once removed of the doctor  these are the Golden Circle that is running the Irish State, while at the same time they been swindling the people in a dozens of  ways and sending off whole families to emigrate.
 We see the closing of businesses and the emigration of Irish people while deeply entrenched "insiders" disguise national robbery in the emotional language of patriotism, it is not difficult to conclude that the Gombeen man never left with the British rather they have always been here a poisonous relic of past . (With a nod to JM Synge)


Bearwagon's picture

Surely not a "credit event", right? Yeah, thought so ...

Ourrulersknowbest's picture

Great work reggie. You are telling a story that the overwhelming majority of people here in Ireland don't want to hear.i have given up talking to people about issues such as this,due to the funny looks and suspicion that I wear a tinfoil hat.
The people seem to want to swallow the lies that the banksters and their private school chums in politics feed them.
I could rant on here about many many things,but frankly I am tired.i don't want my fellow Irishmen and women to get financially hosed any more than we already have been.
I guess freedom means you fail or succeed on your own terms and knowledge base.(unless you are one of the chosen few)

dogbreath's picture

I would appreciate any insights you have regarding your local situation.  Rant on, please. 

Ourrulersknowbest's picture

"Local" situation pretty much the same as rest of Europe and the states.too much credit used to buy crap that has turned people into mindless sheep who actually want to have personalised adverts channelled towards them. Facebook and positive reinforcement are just not what young people need to haul ourselves out of the shit.
Sorry to rant but you did ask.i am just home from work on a Friday after a busy week.i need a beer.......

e-recep's picture

"Sorry to rant"

why be sorry? this is zerohedge. we want to read your local observations and rants. you know, things the mainstream media never reports.

Ourrulersknowbest's picture

Oops I just fed a stereotype with the beer line...
Now I need a whiskey!

Darksky's picture

0.04 euro/share. Sounds like a screaming buy to me. What could possibly go wrong?

No Euros please we're British's picture

Of course in Ireland, that's a turd bank. But I guess that explains all the floating charges.

e-recep's picture

the banks are bankrupt. due to heavy printing, media propaganda, government lies and balance sheet makeups the depositors don't know it yet.

but they will learn.