1991 - The forced closure of BCCI

Old Mr Grouser

Well-known member
Joined
Aug 29, 2009
Messages
6,341
We'll probably never really know all that went on at Anglo-Irish Bank.

The "scandal" so far has been a managed damage-limitation exercise.

It was rather different when BCCI (The Bank of Credit and Commerce International) was closed down in 1991.

Bank of Credit and Commerce International - Wikipedia, the free encyclopedia

To quote from that Wiki article -

"To date liquidators have recovered about 75% of the creditors' lost money"

"After a six month trial in Tampa, key bank officers were convicted and received lengthy prison sentences."


Everybody here seems to be looking at the Anglo debacle solely as an Irishness issue, and as a unique event. We'd do better to look at history, and compare it with other bank failures elsewhere.

When things are being done properly it's fairly straightforward to see all the what's, why's and when's. But when there have been improprieties then you can never be sure what did and didn't happen.
 


Old Mr Grouser

Well-known member
Joined
Aug 29, 2009
Messages
6,341
Here's a four-minute video -
YouTube - BCCI Scandal Detailed Report 7 23 1991 NBC

For very many years BCCI had got away with all sorts of misconduct because it was doing favours for powerful people.

I am not saying that there was a similar situation at Anglo-Irish Bank, only that there should be a proper investigation to rule the possibility out.
 

mr_anderson

Well-known member
Joined
Dec 12, 2007
Messages
9,711

Old Mr Grouser

Well-known member
Joined
Aug 29, 2009
Messages
6,341
Incidentially, I can think of at least one other Irish financial institution that fits this same bill, maybe even more so than Anglo.
Quite so, Mr A.

But given the some of the things that are on public record as happening at Anglo (for example the loan to Sean Quinn) you do have to wonder what else they were doing.

And the regulatory failures might not have been only those of the Banking Regulator.

If you look at - http://www.wtexecutive.com/cms/docum...7/SR051507.pdf - an article in the International Securitization & Finance Report, May 15, 2007 - “Double Irish More than Doubles The Tax Savings - Hybrid Structure Reduces Irish, U.S. and Worldwide Taxation” by Joseph B. Darby III and Kelsey Lemaster - there's favourable mention there of the relaxed attitude of Irish tax officials in regard to US corporations moving profits through Ireland to off-shore tax-havens.

The problem there is that once you're turning a blind eye to things then you can no longer know what it is that you're not seeing.
 

clonycavanman

Well-known member
Joined
Nov 30, 2008
Messages
656
...and not a tribunal please. We should consider just how much value for money this State got from those tribunals, when we thought we could afford any bloody nonsense.
 

Old Mr Grouser

Well-known member
Joined
Aug 29, 2009
Messages
6,341
...and not a tribunal please. We should consider just how much value for money this State got from those tribunals, when we thought we could afford any bloody nonsense.
Well someone needs to find out what went on.

Of course in the normal course of events - if Anglo had simply gone bust - the creditors and their accountants would have had the drains up as they pursued the missing money. But they were prevented from doing that.

If this had happened anywhere else the government ministers would all be in holy terror of visiting the US for fear of being arrested.

In the case of BCCI some of their people got away with it but others went on trial in Florida. Also BCCI's creditors have been able to recover about 75% of depositors' money, and are still looking for more.
 


New Threads

Popular Threads

Most Replies

Top