Anglo PwC Report & Government statement

Joined
Feb 21, 2003
Messages
4,249
Website
www.politics.ie
Twitter
davidcochrane
The report is here.

Ministerial Statement on the Publication of PricewaterhouseCoopers Report

The document released this evening by the Minister for Finance, Mr. Brian Lenihan T.D., represents extracts from a series of reports on Anglo Irish Bank prepared by Pricewaterhouse Coopers for the Financial Regulator.

The Minister noted that this work together with advice and reports received from the Central Bank, Financial Regulator, NTMA, legal and financial advisors and others was a key input into policy making over the past months.

The Minister said that in view of the fact that Anglo Irish Bank is in public ownership, there is an important public interest in publishing this document. It contains as much information as possible given the legal constraints and the need to maintain client bank confidentiality, which is essential to maintain depositor confidence in the bank.

The Report clearly demonstrates the Government was correct to guarantee the financial system last September at a time when financial market liquidity conditions were under severe pressure.

The report deals with certain loan loss scenarios. These are not predictions but rather were intended to show how the bank’s loan book would perform under various stress conditions.

As the Minister stated when Anglo Irish Bank was nationalised: “The Government has made clear that it will ensure its continued viability. Anglo Irish Bank will continue to trade normally as a going concern, with appropriate Government support within the EU Framework.”

The Report is available on the Department of Finance website Home - Department of Finance - Government of Ireland
 
Last edited:


Victor Meldrew

Well-known member
Joined
Jun 8, 2007
Messages
7,059
Nothing to see here, move along now and wear the green Jersey....
 

crocked

Active member
Joined
Jun 25, 2008
Messages
171
We draw your attention to important comments regarding the scope and process of our work, immediately following this letter. We have not sought to update
any of our findings since the completion of our fieldwork on 10 December 2008.

WTF?????
 

yehbut_nobut

Well-known member
Joined
Aug 16, 2007
Messages
520
Did Brian read all of this one? Or just the bits highlighted with a yellow pen?
 
Joined
Feb 21, 2003
Messages
4,249
Website
www.politics.ie
Twitter
davidcochrane
I think the bits to remove were marked with pen. The report is quite interesting, albeit difficult to get an executive summary of any kind. Although it points to South Dublin and Wicklow development in particular.
 

yehbut_nobut

Well-known member
Joined
Aug 16, 2007
Messages
520
We have not carried out any work or made any enquiries of Anglo’s management since 10 December 2008 being the
date on which we completed our fieldwork on Phase III. The PwC Reports do not incorporate the effects, if any, of
events and circumstances which may have occurred or information which may have come to light subsequent to that
date. We make no representation as to whether, had we carried out such work or made such enquiries, there would
have been a material effect on the PwC Reports. Further, we have no obligation to update, and we will not update, the
PwC Reports nor do we have any obligation to notify you if any matters come to our attention which might affect the
continuing validity of our comments or conclusions.
Covering their posteriors. In an intersting way, it kind of reminds of of their evidence to the tribunal on all the reports by them commissioned by Bertie on in various accounts. In each case they stated "we only summarised the account based on information provided by our client".
 

Herodotus

Well-known member
Joined
Feb 9, 2009
Messages
305
It would not surprise me if the golden circle are all in it but as they were not highlighted, Lenihan skipped over it.
 

nuj

Well-known member
Joined
May 26, 2004
Messages
518
Top 15 loans in excess of €500m each?

Ouch.
 

jpc

Well-known member
Joined
Jun 14, 2007
Messages
4,252
Top 15 loans in excess of €500m each?

Ouch.
That tripped out of the report quiet innocently.
Consider that the Irish glass site has had its value knocked down by60%
What would that suggest for some of these loans?
Didn't see too many details of what loans were serured with either.
 

yehbut_nobut

Well-known member
Joined
Aug 16, 2007
Messages
520
At 30 September 2008 the Bank had €9.9 billion of exposures across the top 10
Financial Institutions. All exposures are to EU banks with ratings of A- or above.
Double ouch.
 
C

Congressman Bob Arnold

According to the report in the Irish Times, Dermot Ahern responded to Enda Kenny's call for the 'Golden Circle' to be named by suggesting that he was merely "whipping up political hysteria".

"They now have a leader who is in effect putting his own political interest and his party's interest before the national interest. All he's interested in really is building up the political hysteria in relation to this. Thousands of people have lost their jobs and the political parties need to be pulling together rather than fighting over an issue."

I'm reminded of the classic Karl Rove tactic of accusing your opponents of exactly what you are guilty of yourself. But then again what else have we come to expect from Fianna Fail - The Republican Party.
 

spidermom

Well-known member
Joined
Sep 13, 2008
Messages
9,148
Sorry but I haven't been through the report( and no I'm NOT Lenihan ) but does it name the EU banks?
 

Digout

Well-known member
Joined
Oct 2, 2008
Messages
1,389
According to the report in the Irish Times, Dermot Ahern responded to Enda Kenny's call for the 'Golden Circle' to be named by suggesting that he was merely "whipping up political hysteria".

"They now have a leader who is in effect putting his own political interest and his party's interest before the national interest. All he's interested in really is building up the political hysteria in relation to this. Thousands of people have lost their jobs and the political parties need to be pulling together rather than fighting over an issue."

I'm reminded of the classic Karl Rove tactic of accusing your opponents of exactly what you are guilty of yourself. But then again what else have we come to expect from Fianna Fail - The Republican Party.
Post of the year.
 

nuj

Well-known member
Joined
May 26, 2004
Messages
518
"During our review, we have seen significant evidence of borrowers reacting to the downturn in the residential market
by effectively ‘mothballing’ development sites and land banks. These sites are not expected to be
developed/completed until there is a return in activity to the market. This is a short to medium term solution for many
developers. However, the ability to place facilities on hold may be restricted. It will be difficult for the Bank to permit
interest roll up on facilities where LTV is high, interest cannot be funded and further security is unavailable
."

LTV is high and rising as property prices keep falling. Interest can't be funded as existing and future tenants and purchasers close down or pull back. Further security? With asset prices plummeting (ex-gold)?

As bad as it looked last December, it's a lot worse now, and it's going to continue to worsen for the foreseeable future.
 

yehbut_nobut

Well-known member
Joined
Aug 16, 2007
Messages
520
There are large exposures to a number of developers with land banks and development sites which are geographically
close in North Dublin and contiguous areas. We have not estimated the number of residential sites potentially
available in these locations. Successful development of all these locations is dependent on a number of factors
including completion of local area development plans, zoning etc., an increase in demand from current depressed
levels, services/infrastructure build and continued availability of financing.

There are also large exposures to a number of developers with residential land banks and development sites which are
geographically close in South Dublin and Wicklow. There is currently a large over-hang of unsold higher density
residential units in these areas. Successful development of all these locations is dependent on similar factors to North
Dublin as noted above.

There are large current and potential exposures to a number of developers with development sites. Significant funds
(which have not been committed) will be required to develop these commercial sites to realise their value.
Its just gets better and better. Did you know I own half of dublin and wicklow? So do you, by the way!
 
Joined
Jun 9, 2007
Messages
18,709
It's fairly dull. I wouldn't mind seeing the actual terms of reference they were given:
The PwC Reports were prepared using financial and loan portfolio information supplied by Anglo’s management which
was not subject to audit by PwC. We also had access to senior executives at Anglo. The audit is a separate process
under statute which we understand will be completed in the week ending 20 February 2009. PwC are not Anglo’s
statutory auditors. We have had no access to the work undertaken by the auditors or their conclusions.
Our work was completed in accordance with the specific terms of reference set out in the Instructions.
 

Digout

Well-known member
Joined
Oct 2, 2008
Messages
1,389
I know know well why this was released late, its a bloody WHITEWASH.
 


New Threads

Popular Threads

Most Replies

Top