ECB President Jean-Claude Trichet told Finance Minister Lenihan: 'Save your banks"

John Kalahan

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ECB President Jean-Claude Trichet told Finance Minister Brian Lenihan: 'Save your banks'.

RTÉ Business: NAMA decisions driven by pragmatism - Ahearne

Seems strange that a person whom none of us elected ECB chief Trichet should tell us how to spend so much money that we don't have.

Where did he expect that we would get the money required?

How were we to pay it back?

Were we to pay it back in full?

Are we to pay it back at all?

Did he know how much would be required to "save the banks" at the time he gave the advice/ direction?

Did he favour the bailout of bondholders?

Should he appear before any Banking inquiry?
 


HarshBuzz

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unless I can see a direct quote attributed to JCT on this, I refuse to believe it

'save your banks Monsieur Lennyhoon'

'what, all of them - even Anglo?'

'oui, oui - you speak such divine French by the way. Now passez moi the garlic'
 

cyberianpan

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Indeed Mr Jean-Claude... and what precisely did you say about risk capital ? (subordinated debt)

cYp
 

Sync

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"Save your banks" was an obvious thing to say. Everyone in Ireland broadly said the same thing. How we chose to do that is down to the govt of the day. Without knowledge of the follow-up conversation this is pointless.
 

Pucfada

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"Save your banks" was an obvious thing to say. Everyone in Ireland broadly said the same thing. How we chose to do that is down to the govt of the day. Without knowledge of the follow-up conversation this is pointless.
I am not sure about that. In my view the "banking system" must be saved for the sake of the economy not the "bankers". However, our actions (or rather those of the government) to date would suggest that we have continued to allow senior banking officials far to much lattitude in a misguided view that they will get it right second time round.
I was was very critical of Lenihan for not taking decisive action to get to grips with the banking hierarchy and remain so, particularly as it is clear that post bailout many of them just want to pick up where they left off and have on a number of occasions thumbed their noses at the government and the taxpayer.
 
M

MrFunkyBoogaloo

Where did he expect that we would get the money required? From the ECB... where else?

How were we to pay it back? By crippling taxpayers.. sure what's a few lives as long as the numbers stack up (as implied by some right-wing hack on p.ie)

Were we to pay it back in full? YES + INTEREST

Are we to pay it back at all? We could default but whether FF or a future government have the balls/temerity/audacity/bravery(depending on how you look at it) to do so is another matter. Either way it has to be paid back!

Did he know how much would be required to "save the banks" at the time he gave the advice/ direction? Who cares, think of the interest!

Did he favour the bailout of bondholders? I would imagine he's concerned with the stability of the EMU. Couldn't have some upstart corrupt backwater diminishing the precious €.

Should he appear before any Banking inquiry? Why, he had nothing to do with the policies that lead us here. He may have decided and 'advised' on corrective action but only after the fact.
 

ryson

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ECB President Jean-Claude Trichet told Finance Minister Brian Lenihan: 'Save your banks'.

RTÉ Business: NAMA decisions driven by pragmatism - Ahearne

Seems strange that a person whom none of us elected ECB chief Trichet should tell us how to spend so much money that we don't have.

Where did he expect that we would get the money required?

How were we to pay it back?

Were we to pay it back in full?

Are we to pay it back at all?

Did he know how much would be required to "save the banks" at the time he gave the advice/ direction?

Did he favour the bailout of bondholders?

Should he appear before any Banking inquiry?

Yet fools still scoff at the idea of there being a global banking conspiracy.

Rule by "Goldman Sachs": Goverment that Sux
 

Dáiler

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I'm sure Lenihan misheard JC Trichet (prob the accent) what he really said was "save your thanks" ( until you see what price we will exact, for your foolishness and for sending us Charlie McCreevy ) :D
 

needle_too

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"Save your banks"?

Wtf makes anyone think these are 'Irish' banks?

Most of the shares and bonds are owned by foreign interests.
There are no 'Irish' banks.
 
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ECB President Jean-Claude Trichet told Finance Minister Brian Lenihan: 'Save your banks'.

RTÉ Business: NAMA decisions driven by pragmatism - Ahearne

Seems strange that a person whom none of us elected ECB chief Trichet should tell us how to spend so much money that we don't have.

Where did he expect that we would get the money required?

How were we to pay it back?

Were we to pay it back in full?

Are we to pay it back at all?

Did he know how much would be required to "save the banks" at the time he gave the advice/ direction?

Did he favour the bailout of bondholders?

Should he appear before any Banking inquiry?
Just shows that maintianing the Bankster status Quo at the expense of Joe Tax Payer ,even national economies , is the order of the day.
 

Sucker Punch

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More anecdotal evidence that the ECB had a hand in the implementation of the Bank Guarantee yet Trichet believes he is unaccountable:



Philippe Legrain said:
– Legrain who was personally headhunted by Commission president Manuel Barroso, below, in 2011 to advise him on economic strategy – gave a damning condemnation of what he said amounted to "bullying" by the EU.
"It was outrageous of Germany, the European Commission and above all the ECB to threaten to force Ireland out of the euro if it did not follow through with that foolish guarantee, lumbering Irish people, who have already suffered enough from collapsing house prices and a sinking economy, with a €64bn bill to bail out bust banks, €14,000 for every man, woman and child," said Mr Legrain, who left his job at the Commission earlier this year to release a book condemning the EU's handling of the financial crisis.
Irish were bullied and treated outrageously during crisis


... And that folks is supranational government. Suck it up or vote accordingly.
 
Last edited:

Sucker Punch

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Recent events regarding the ECB letter to Lenihan are also relevant to this thread for the record:

European Ombudsman Emily O'Reilly, pictured below, has criticised the governors of the European Central Bank (ECB) for refusing to hand over a letter Jean-Claude Trichet wrote to Mr Lenihan in November 2010.
The letter allegedly reveals that Mr Trichet threatened to pull funding from Ireland's banks unless the government accepted a bailout. The ECB has said it is not in the public interest to release the letter.
ECB facing criticism for refusing to release letter to Lenihan - Independent.ie


Further to this Noonan is on record as stating that he is in favor of the letter being released. Trichet's non cooperation should force the government's hand to release the letter.

Speaking exclusively to the Sunday Independent yesterday, Mr Noonan said that he had seen the "very direct" letter which left Mr Lenihan with "little or no option" but to admit defeat and lead Ireland into the €85bn troika programme.
Michael Noonan: 'ECB threat letter will be released' - Independent.ie
 

bring back paper tigers

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interview with Trichet on newstalk this morning..

starts @ 11.50

http://www.newstalk.ie/player/listen_back/5/9676/07th_May_2014_-_Breakfast_Part_3


the subject of the letter to Ireland is @ 14.00

"all letters belong to the addressee, i.e. the Irish government, it's up to them to decide what to do with it"

@18.00 "the Irish government alone without any consultation took the decision to bail out the banks"
 

flavirostris

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Trichet may be a bit of a w@nker but he's correct that the FF-Green government acted unilaterally on the Bank Guarantee.
 

selfemployed

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When you lie down with dogs expect to catch fleas, remember our beloved Government had over ruled the votes of Irish people forcing them to vote again until they got the result the E.U. wanted.

Was Brian Lenihan, Cowen & Co. supposed to release a letter from the E.U. basically telling the Irish people they were of zero value to the E.U. to the point where they were willing to throw us out of the Euro currency?

Hindsight being 20/20 vision wouldn't we have been well on our way to a re-established Punt if our leaders had not succumbed to blackmail?

Would the Euro even be a currency today if they had made the letter public and our E.U. neighbours had reacted in the way we should have?

Our present Government are no better, they bow and scrape to the orders from Germany (through the E.U.) Angela says jump, Kenny asks how high?

Where are the politicians with the back bone we need to run this country?
 

captain obvious

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interview with Trichet on newstalk this morning..

starts @ 11.50

http://www.newstalk.ie/player/listen_back/5/9676/07th_May_2014_-_Breakfast_Part_3


the subject of the letter to Ireland is @ 14.00

"all letters belong to the addressee, i.e. the Irish government, it's up to them to decide what to do with it"

@18.00 "the Irish government alone without any consultation took the decision to bail out the banks"
I am confused, why is this letter not released, at least it would remove this ridiculous speculation?
Minister Noonan is on record as wanting it released (the minister currently with responsibility for it).
The sender appears on principal to not have an issue with its release.
So who doesn't and why?
 


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