Anglo-Irish Picked Bailout Number "Out Of My Arse" To Force Shared Taxpayer Sacrifice

Tyler Durden's picture




 

The Irish people, who sacrificed their sovereignty and billions of Euros, are waking this morning to a stunning revelation that the bailout to save Anglo-Irish was engineered by the Bank's leadership to game as much money as possible from the central bank. The Irish Independent has secret recordings from the period in 2008 - below - that show senior management luring the State into giving it billions as they admit the EUR 7 billion number was "picked out of my arse."

The bottom-line is that the bank knew they were in trouble and so decided to game the Central Bank and their regulators knowing that once the State began the flow of money, it would be unable to stop: "If they (Central Bank) saw the enormity of it up front, they might decide they have a choice. You know what I mean? They might say the cost to the taxpayer is too high . . . if it doesn't look too big at the outset... if it looks big, big enough to be important, but not too big that it kind of spoils everything, then, then I think you have a chance. So I think it can creep up... [once] they have skin in the game." Will there be an Irish Spring as the conspiracy theory of the banking bailout now become conspiracy fact?

 

 

Via The Irish Independent,

Taped telephone recordings (from the bank's own systems) from inside doomed Anglo Irish Bank reveal for the first time how the bank's top executives lied to the Government about the true extent of losses at the institution.

 

...

 

Anglo itself was within days of complete meltdown – and in the years ahead would eat up €30bn of taxpayer money. Mr Bowe speaks about how the State had been asked for €7bn to bail out Anglo – but Anglo's negotiators knew all along this was not enough to save the bank.

 

...

 

The plan was that once the State began the flow of money, it would be unable to stop.

 

Mr Bowe is asked by Mr Fitzgerald how they had come up with the figure of €7bn. He laughs as he is taped saying: "Just, as Drummer (then-CEO David Drumm) would say, 'picked it out of my arse'."

 

...

 

Mr Bowe's comments in the audio recording reveal that Anglo's strategy was to lure the State in, leaving taxpayers with no choice but to continue to provide loans to "support their money".

 

...

 

"If they (Central Bank) saw the enormity of it up front, they might decide they have a choice. You know what I mean?

"They might say the cost to the taxpayer is too high . . . if it doesn't look too big at the outset . . . if it looks big, big enough to be important, but not too big that it kind of spoils everything, then, then I think you have a chance. So I think it can creep up."

Mr Fitzgerald, the Director of Retail Banking, is heard saying: "Yeah. They've got skin in the game and that is the key."

 

...

 

The recording also shows Mr Bowe and Mr Fitzgerald laughing as they say how there is no realistic chance of ever repaying the loans.

 

For the first time, taxpayers get an exclusive insight into the banking shenanigans that cost Ireland our sovereignty.

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 06/24/2013 - 09:25 | 3686491 So Close
So Close's picture

Debt = Slavery

Mon, 06/24/2013 - 09:53 | 3686614 eatthebanksters
eatthebanksters's picture

String thes fuckers up, along with any of the other corrupt, lying thieves.

Mon, 06/24/2013 - 10:12 | 3686660 FEDbuster
FEDbuster's picture

This is really not that different than what "Stammerin" Hank Paulson did to come up with a number for TARP.  They just pulled that out of their asses, too.  Once TARP was passed (with the threat of TEOTWAWKI), they figured out that they better come up with a better (less government involvement) plan to bail out the banks, so we got QE infinity. 

Mon, 06/24/2013 - 10:38 | 3686851 icanhasbailout
icanhasbailout's picture

This is EXACTLY what Hank Paulson did with TARP. As I recall he too later admitted that the number came out of his ass.

Mon, 06/24/2013 - 20:32 | 3689281 FEDbuster
FEDbuster's picture

Bailout numbers out of their asses, so they could stick it in the taxpayer's ass.

Mon, 06/24/2013 - 11:20 | 3687061 Freddie
Freddie's picture

Where is that Irish woman member of Parliment bashing the Irish fawning over N-S-A-OB_ama?  Including tax cheats Bono and U2.   She said the Irish Parliment should dress up in Leprichaun outfits in the red white and blue.

Mon, 06/24/2013 - 14:56 | 3688176 The_Small_Lebowski
The_Small_Lebowski's picture

Claire Daly is her name

Mon, 06/24/2013 - 11:13 | 3687035 SheepDog-One
SheepDog-One's picture

WHY aren't these criminals already hanging??

Mon, 06/24/2013 - 12:09 | 3687327 Cathartes Aura
Cathartes Aura's picture

where are the Provo "kneecappers" when you need 'em. . .

Mon, 06/24/2013 - 09:27 | 3686499 Ivanovich
Ivanovich's picture

Hope he has a good lawyer up his arse as well.

Mon, 06/24/2013 - 09:31 | 3686523 Jayda1850
Jayda1850's picture

Remember, these are bankers. They don't go to jail.

Mon, 06/24/2013 - 09:36 | 3686542 francis_sawyer
francis_sawyer's picture

I wonder what else he found in there...

Mon, 06/24/2013 - 09:38 | 3686553 Fukushima Sam
Fukushima Sam's picture

They may make it to the gallows.

Mon, 06/24/2013 - 09:42 | 3686563 moriarty
moriarty's picture

True, but I am sure that there are still folks around those parts who mete out their own kind of justice and if, just if they have lost out a bit I would not like to be a fingered banker in Ireland.

Oh and I can see the Garda sending out the fast response tea ladies to provide them succour (who even then will not see anything).

 

Mon, 06/24/2013 - 09:58 | 3686637 Ivanovich
Ivanovich's picture

They do when they rob other bankers.

Mon, 06/24/2013 - 09:59 | 3686642 Anasteus
Anasteus's picture

It's unbelievable what sort of scum is leading the planet.

I think it's high time to get rid of this ordure. Without this necessary step humanity has no chance to progress further. Enough is enough.

Mon, 06/24/2013 - 10:41 | 3686859 NoDebt
NoDebt's picture

Stop looking at the people involved.  There will always be liars, cheats and thieves.  The problem was that banks should never have been bailed out, period.  Failure and rebuild is how it works, how a real economy refreshes itself.  Stop that from happening and you get stories like this.  That bank should have gone down in flames- and deserved to do so.  As soon as they even had the OPTION of petitioning the government for a bail-out this kind of behavior should be not only anticipated but expected.

Tue, 06/25/2013 - 03:44 | 3690232 Anasteus
Anasteus's picture

I can't stop looking at the people involved; that's the point. The banks are not buildings, the bailouts are not numbers and the law is not a paper. It's a result of human thoughts and activity. There is no effective system possible if people can get away with ignoring and circumventing it. In such an environment even a perfect law would turn out to be a mere shit of paper.

Yes, there will be liars, cheaters and thieves. But it's a difference if they operate in governments or sit in jails.

Mon, 06/24/2013 - 09:29 | 3686504 fonzannoon
fonzannoon's picture

The funniest part is that every economic data point is pulled out of the governments asses and there is a list of people who pay a lot of money to get this wonderful insight .00002 seconds before everyone else.

What a fuckin joke!

Mon, 06/24/2013 - 10:12 | 3686709 HoaX
HoaX's picture

Not to mention every single rating issued by the likes of Moody´s and S&P.

Not that you guys here don´t know this already but still, nice article on Rolling Stone a couple days ago:

http://www.rollingstone.com/politics/news/the-last-mystery-of-the-financ...

Mon, 06/24/2013 - 09:28 | 3686505 Bearwagon
Bearwagon's picture

The people should just shove it back up his arse, then ... in small coins!

Mon, 06/24/2013 - 09:28 | 3686507 gjp
gjp's picture

Just remember this every time you hear the word 'sophisticated' attached to the financial kleptocracy.  About as sophisticated as my arse.

Mon, 06/24/2013 - 09:29 | 3686510 Kiss My Iceland...
Kiss My Icelandic Ass's picture

 

 

Hmmm. People are surprised at this sort of thing? Think AIG, Goldman, financial crisis, etc, etc, ....

Mon, 06/24/2013 - 15:27 | 3687997 M.B. Drapier
M.B. Drapier's picture

It's not really surprising, but it is ususual for the people responsible to be caught on the record spelling things out so clearly in one place.

Mon, 06/24/2013 - 09:28 | 3686512 BurningFuld
BurningFuld's picture

So what. It's not a crime to do that is it? Not if you are a Banker anyhow.

Mon, 06/24/2013 - 09:29 | 3686513 Dr. No
Dr. No's picture

For once a bit of honesty coming out of a government!!

Mon, 06/24/2013 - 09:29 | 3686516 VonSalza
VonSalza's picture

Wanking banksters http://youtu.be/koY6kXhQDQo

Mon, 06/24/2013 - 12:07 | 3687315 PT
PT's picture

Collective noun for a group of bankers: a wunch.

i.e. a wunch of bankers

Mon, 06/24/2013 - 13:29 | 3687721 jimmytorpedo
jimmytorpedo's picture

I thought it was a cunt of bankers.

It should be a crash of bankers but the rhinoceris got that one first

Mon, 06/24/2013 - 22:04 | 3689600 MaxThrust
MaxThrust's picture

Just call it a "Cunch of Banksters" then

Tue, 06/25/2013 - 01:59 | 3690119 PT
PT's picture

I'd love to give you an up arrow MaxThrust, and jimmytorpedo, but removing the W totally destroys my point.  Wcunch?

Oh hell, you can have one anyway, and jimmy for "the crash ..." 

Tue, 06/25/2013 - 02:07 | 3690131 PT
PT's picture

"wloody fucking heap of shit cunt scum lying parasite bastard dickhead satan spawn cockroach group" of bankers???

Mon, 06/24/2013 - 09:32 | 3686527 recidivist
recidivist's picture

I think the banksters owe the Irish people as much Guinness Stout as they can drink.  The the truly irate would be far easier to spot.  It could, however. all go horribly wrong...

Mon, 06/24/2013 - 09:35 | 3686535 Dr. No
Dr. No's picture

No way Guinness could brew "as much as they can drink".  Its Irish we are talking about here.  It would be viewed as more empty promises.

Mon, 06/24/2013 - 09:33 | 3686530 Jim B
Jim B's picture

I am sure a similiar thing took place with our 800+ Billion TARP.  Does anyone have the Paulson tapes?

Mon, 06/24/2013 - 09:49 | 3686593 GolfHatesMe
GolfHatesMe's picture

NSA Does, Verizon Does, AT&T Does, CIA Does, FBI Does, SEC - Probably not

Mon, 06/24/2013 - 10:09 | 3686692 NoDebt
NoDebt's picture

Absolutely, Jim.  You don't need any more proof than the following:

As originally "sold" to Congress the TARP money was to buy the bad debt out of struggling banks.  Instead, after it was passed the Fed "suddenly realized" they could get more bang-for-the buck by using it to recapitalize the banks (and lever up).

The Fed KNEW ALL ALONG it was going to go towards recapitalization, however.  How do I know this with abosolute certainty?

I present you with QE4EVA as exhibit A.  About half the $85B they are plowing into Wall St. every month is to buy Mortgage Backed Securities (MBS).  The same MBS they were going to buy under TARP before they "suddenly realized" they could use it for recapitalization instead.

TARP:  Congressional approval required to buy MBS.

QE4EVA: No congressional approval required to buy MBS- just everyday Fed monetary policy.

So, really, they could have bought the toxic MBSs without Congressional approval any time they wanted to, as they are doing today.  Why the Kabuki theatre over doing it with TARP?  BECAUSE THEY KNEW AT THE OUTSET THEY WERE GOING TO RECAPITALIZE THE BANKS WITH IT ALL ALONG.  THAT is what required congressional approval and taxpayer dollars.  The Bernank looked like the cat that ate the canary the day he announced the TARP money was going to go towards recapitalization instead of buying toxic assets.  He was literally smirking as he explained the change.

Mon, 06/24/2013 - 09:33 | 3686531 dick cheneys ghost
dick cheneys ghost's picture

Here is another (BAC) banker story that will make you sick........

http://www.salon.com/2013/06/18/bank_of_america_whistleblowers_bombshell...

Ill bet T Geithner was/is behind this...

Mon, 06/24/2013 - 09:35 | 3686536 Village Smithy
Village Smithy's picture

I'm sure though that here in America the bail out numbers were "diligently checked for veracity".

Mon, 06/24/2013 - 09:43 | 3686539 Ribeye
Ribeye's picture

The recordings weren't secret, it was standard practice within Anglo to record all calls made from desk phones,

The real question is,

WHERE THE FCK ARE THE REST OF THEM?

Where's the calls between Sean F and Permo?

Where's the calls between Sean F, David Drum and Sean Q?

Where's.the calls between Mike Annsley, Richard Woodhouse and a certain litigious telecoms corporatist (who shall remain nameless)?

And most importantly, WHERE ARE THE CALLS BETWEEN ANGLO AND THE DoF, AND LENNY?

Mon, 06/24/2013 - 09:55 | 3686625 dennishis
dennishis's picture

I would like to hear the calls between the banks managment and their callgirls and cokedealers. Lauhging about those stupid taxpayers paying them to get laid with Irelands Finest.

Mon, 06/24/2013 - 11:32 | 3687127 Cacete de Ouro
Cacete de Ouro's picture

Back in the 2000s, Irish Property Developers used to supply callgirls to executives and loan officers of Bank of Ireland, Allied Irish and Anglo Irish when they took them on trips to Budapest and Prague etc... the girls were waiting in their rooms, all paid for by the developers.

Mon, 06/24/2013 - 11:28 | 3687101 Cacete de Ouro
Cacete de Ouro's picture

Sean F = Sean Fitzpatrick http://en.wikipedia.org/wiki/Se%C3%A1n_FitzPatrick

Permo = Irish Permanent http://en.wikipedia.org/wiki/Irish_Permanent

Sean Q = Sean Quinn http://en.wikipedia.org/wiki/Se%C3%A1n_Quinn

telecoms corporatist = Denis O'Brien http://en.wikipedia.org/wiki/Denis_O%27Brien

Lenny = Brian Lenihan JR, then Minister of Finance http://en.wikipedia.org/wiki/Brian_Lenihan,_Jnr

DoF = Department of Finance  http://en.wikipedia.org/wiki/Department_of_Finance_%28Ireland%29

 

and......'Drum roll'.....  'Drumm', David http://en.wikipedia.org/wiki/David_Drumm <-   whole summary and story here

Mon, 06/24/2013 - 09:36 | 3686544 JasperNewtonDaniel
JasperNewtonDaniel's picture

Where is the IRA when they are needed?  They should quit worrying about Ulstermen and wage war against their true enemies.  These bankster crooks must be made to fear starting their car or opening their front door every day of their miserable lives.  Enough is enough.  Ireland will never be free as long as these pigmen draw breath.     

Mon, 06/24/2013 - 09:42 | 3686559 Mr. Hudson
Mr. Hudson's picture

I wouldn't be surprised if the IRA was financed by Wall Street.

Mon, 06/24/2013 - 13:34 | 3687743 jimmytorpedo
jimmytorpedo's picture

IRA was financed by MI-6

Lord James of Blackheath from the house of Lords casually mentions it on their version of Cpac

Mon, 06/24/2013 - 22:17 | 3689623 MaxThrust
MaxThrust's picture

MI-6 had people inside both organizations.

The conflict served was a perfect training ground for British Soldiers. Kept the UK public in fear which supported military spending. Made quite a few people rich over the years.

Have you ever asked yourself why the IRA never blew-up anything important like a power station or Internet backbone or contaminated a major water supply. It's because they were under orders not to target the assets. Orders that originated from MI-6

Mon, 06/24/2013 - 09:38 | 3686550 Kina
Kina's picture

Just IRA them.

Mon, 06/24/2013 - 09:39 | 3686554 Son of Loki
Son of Loki's picture

Banker Bonus time for all !!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[and lots moar 7 course dinners]

Mon, 06/24/2013 - 09:41 | 3686561 Ribeye
Ribeye's picture

Oh, and thank you Tylers for putting up this story,

The more people that hear this tape the better,

RTE (Irish state media, Pravda basically) are already scrambling to difuse and bury the story,

This week has started well:)

Do NOT follow this link or you will be banned from the site!