Last week I shocked many with several revelations in the post What Should The US Do If One Of The Biggest Banks In Ireland Blatantly Defrauded US Investors? [8] Well, there's more to the Bank of Ireland story than evades the eye.
[10]BoI Boucher1-1
His statement appears to ignore the existence of the charges that were clearly delineated and illustrated in my previous post - What Should The US Do If One Of The Biggest Banks In Ireland Blatantly Defrauded US Investors? [8]
Below is a sworn copy of the affidavit for Richie Boucher, the CEO of Bank of Ireland. This relates to reducing the Banks Regulatory capital by almost 4 Billion Euro which was shared amongst its preferential shareholders – at the expense of the common shareholders.
You will see he states that the bank has assets of almost 155 Billion Euro. The bank reported losses of 2.1 Billion euro last week.
Although he states that the bank has assets of almost 155 Billion Euro, it recently reported losses of 2.1 Billion euro, which of course materially reduces capital. This loss had to be visible from within the bank for Citibank (amongst other analysts) had bearish views on the company. I doubt Citi knew something that the bank management didn't!
This bid to raise capital for dividend distribution in the face of apparent and expected losses (Citibank had a bearish outlook on the bank’s operations, as did the CEO himself) appears to fly in the face of prudent operation designed to keep the bank as an ongoing concern. Further investigation supports reason to question this action.
The institutional bank investor Wilbur Ross bought preferred shares of BoI, and benefitted from a windfall payout as BoI successfully petitioned to reduce its regulatory share capital amongst current and impending losses that it was confident it would be taking.
Wilbur Ross, et. al. made off like bandits, with the Bank of Ireland common people shareholders left holding the bag with millions in losses. We calculate Mr. Ross pocketed over $600 million dollars for this 5 month or so trade - and with relatively very little out of pocket expense or risk. He still owns the preference shares, after all - and still got the cash as well! Touche' mister Ross, Touche'. As for the common shareholders nursing that 2.1 billion euro (roughly 4.5B dollar) losse, I say the same to you that the big US bankers said to their clients during the 2008 debacle - Muppets! See Goldman's take on Muppetology to get a firmer grasp on what I mean [14] and how the US banks consider nearly all taxpayers muppets [15].
I calculate the Bank of Ireland taking even more aggressive losses in the future. Why? Failure to mark to market means Irish banks are carrying loans whose true saleable value are roughly 27% of book value. This literally means insolvency for many – and that’s without the recognition of the various charge issues illustrated within. I have documentation to back this up as well and will delve into it in a future post. In the meantime, review my previous posts on the topic or subscribe to download [16] some of the speficic charge documents contained in the posts herein.
Other hard hitting pieces on the resurgent EU banking crisis
- Is The Cypriot Government Crazy Or Do They Really Fear Bankers That Much? [17]
- Mainstream Media Says Cyprus Salvaged By… [18]
- Economic Depression Is The New Success [19]
- The Canadian Government Offers "Bail-In"… [20]
- EU Bank Depositors: Your Mattress Is Starting To Look Awfully Attractive - Bank Risk, Reward & Compensation [21]
- Global Banking Crisis - How & Why YOU Will Get "Cyprus'd" As This Bank Scrambled For Capital!!! [22]
- As If On Cue, BoomBustBlog Shenanigan Research Gets Real In Ireland, Why Aren't These Guys Knocking On My Door? [23]
- Are You About To Get Cyprus'd in Ireland? When A Single Word's Worth Billions Of Euros... [24]
- Dear Ireland (& AIB), Haven't We All Learned The Problem Is Insolvency, Not Liquidity? [25]
- Oh No! Is It Possible? A 3rd Irish Bank With Hidden Charges Not Revealed In Its Annual Reports? [26]
- Ireland, You May Very Well Be Bust & I Make No Apologies For What I'm About To Show You [27]
- The Next Leg Of That Counterparty Led European Bank Run Has Put On It's Running Shoe [28]
- I Illustrate How The Irish Banking Cancer Spreads to UK Taxpayer & Metastizes Through US Markets [29]
- Allegations Of Big Irish Banks Operating… [30]
- Readers Respond With Evidence That AIB (… [31]
