Failed bank got all clear in report that cost State €7.4m

DCon

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THE Government was lambasted in the Dail yesterday for paying €7.4m to Merrill Lynch for advice that the Anglo Irish was financially sound shortly before the bank was nationalised at great expense.

The Labour Party flaunted documents released under the Freedom of Information Act during the report and final stages of the NAMA bill.

The department paid €7.4m to Merrill Lynch to be told Anglo was "fundamentally sound" days before its nationalisation, said Labour's finance spokeswoman Joan Burton.

Senior officials then wrote to the European Commission to inform them that the bank was sound, but also said that it was a "niche" operator in the Irish market -- whereas the Finance Minister Brian Lenihan had defended its nationalisation on the grounds that it was of "systemic importance". "In a nutshell, this is why we need oversight," Ms Burton said.

Michael D Higgins TD said it was a disgraceful to describe the Anglo as being of "systemic importance" as it was no more systemic than a dandelion.
Ms Burton said the key lesson from history was that unless there were high levels of transparency and oversight, "the whole exercise is likely to prove a failure".

Banks were already "putting the thumbscrews" on small businesses around the country, she said.

Mr Lenihan replied that Anglo was "a systemic bank at the time of nationalisation" because it was a bank with a balance sheet of €100bn, including €50bn in deposits from 250,000 customers.

"The idea that the collapse of such an institution by a government would have no implications is utterly and totally fallacious," he said.
Failed bank got all clear in report that cost State €7.4m - National News, Frontpage - Independent.ie
 


Dillinger

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If this does not prove to the nation that they are being screwed, then I don't now what will.
 

Digout

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The EU are going to order the wind up of Anglo within a couple of months.
 

SAHM

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And eh any chance of chasing Merril Lynch for a refund under the Sale of Goods & Supply of Services Act. More to the poin €7.4m. A trainee accountant that has done the Auditing paper would have been able to spot that there was huge problems with ethics and window dressing in Anglo. And still not a peep from the Accountancy professional body to reign in their members profiteering from shoddy work.
 

SAHM

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And still no mention of protests from the Irish people against their governments policies. Happy to sit with the divide and conquer of the workers. Nothing to let the government know peoples feelings on how they are running the Country apart from wage cuts and taxes.
 

Digout

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And still not a peep from the Accountancy professional body to reign in their members profiteering from shoddy work.
Of course not, and guess what? Every one of the big accountancy firms gave the all clear to one of the corrupt Zombee banks we have. And even better, all these big firms are getting massive contracts from SCAMA.

War is the only solution.
 

DCon

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And eh any chance of chasing Merril Lynch for a refund under the Sale of Goods & Supply of Services Act. More to the poin €7.4m. A trainee accountant that has done the Auditing paper would have been able to spot that there was huge problems with ethics and window dressing in Anglo. And still not a peep from the Accountancy professional body to reign in their members profiteering from shoddy work.
They were probably asked to provide a report that said Anglo was sound.

They did this...
 

loner

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And eh any chance of chasing Merril Lynch for a refund under the Sale of Goods & Supply of Services Act. More to the poin €7.4m. A trainee accountant that has done the Auditing paper would have been able to spot that there was huge problems with ethics and window dressing in Anglo. And still not a peep from the Accountancy professional body to reign in their members profiteering from shoddy work.
Have Merril Lynch been asked for any explanation about their report? have they been given any other work by the govt since that report was furnished? Was there any clawback provision in the anglo contract to provide for a refund if the report proved to be grossly inaccurate?
 

SAHM

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Could Joan Burton call on the ICAI (which she is a member of), ACCA, CPA to investigate Merrill Lynch's role in giving false information to the Irish Government. So we all know exactly how they justified the fee and secondly how they came to the conclusions they came to.
 

Digout

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Could Joan Burton call on the ICAI (which she is a member of), ACCA, CPA to investigate Merrill Lynch's role in giving false information to the Irish Government. So we all know exactly how they justified the fee and secondly how they came to the conclusions they came to.

Burton certainly could call for this. When a doctor commits a serious offense, s/he is struck off, should be no different for the accountants who signed this report.

It wont happen though, middle class criminals get away with whatever they do.
 

Akrasia

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They were prob given a blank cheque. Whose names were signed on the report?
That's what we need to know.

I've e-mailed Joan Burton asking if she can publish the names of the authors of this report. They are either incompetent, corrupt or they were ordered to produce this verdict by their bosses, (in which case, they ought to defend themselves by telling us what really happened.) Or Anglo provided them with doctored information which would be a criminal offense.

These people have cost the Irish state at the very least 26 billion (i've actually lost count at this stage).

They ought to stand by their work and defend it if it can be defended. (if not, they ought to come clean and tell us who was really responsible for such an obviously inaccurate report)
 

Sync

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Unlikely loner, that's not typical in any contract of this nature.

Not defending Merril as I haven't seen the report yet, but it would be interesting to see what scope they were given by the governemnt to examine. The scope is never "Here, look at this bank" it's narrowed to "Look at these specific areas of the bank for this specific time, and give us your impression"

Also, in the possible event of fraud (and there still is that possibility) they have a pretty good defence. Reviews like this and audits in general aren't there to detect fraud. The hidden and disguised loans involving Fitzpatrick and Nationwide could have severly altered the figures they were looking at.
 

Sync

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Could Joan Burton call on the ICAI (which she is a member of), ACCA, CPA to investigate Merrill Lynch's role in giving false information to the Irish Government. So we all know exactly how they justified the fee and secondly how they came to the conclusions they came to.
They don't need to justify their fee, but the conclusions and methodology should be in the report, and the evidence available if the client (Irish govt) requests it.
 

SAHM

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Well it stinks. A bank who's main business in Ireland is providing financial advice and investments to 'high net worth individual's' is called in to provide Corporate Auditing on a BANK that is the bank of choice for most of these same 'High net worth Individuals'.

Why did they not go to one of the smaller practices in the Country whom would have been delighted at the chance. And the lack of experience doesn't wash. Accountancy crime is the same no matter what Country you are in. It is carried out the same way every time, time and time again.
 

loner

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Unlikely loner, that's not typical in any contract of this nature.

Not defending Merril as I haven't seen the report yet, but it would be interesting to see what scope they were given by the governemnt to examine. The scope is never "Here, look at this bank" it's narrowed to "Look at these specific areas of the bank for this specific time, and give us your impression"

Also, in the possible event of fraud (and there still is that possibility) they have a pretty good defence. Reviews like this and audits in general aren't there to detect fraud. The hidden and disguised loans involving Fitzpatrick and Nationwide could have severly altered the figures they were looking at.
Thanks Sync
 

Digout

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That's what we need to know.

I've e-mailed Joan Burton asking if she can publish the names of the authors of this report. They are either incompetent, corrupt or they were ordered to produce this verdict by their bosses, (in which case, they ought to defend themselves by telling us what really happened.) Or Anglo provided them with doctored information which would be a criminal offense.

These people have cost the Irish state at the very least 26 billion (i've actually lost count at this stage).

They ought to stand by their work and defend it if it can be defended. (if not, they ought to come clean and tell us who was really responsible for such an obviously inaccurate report)
Let us know if ya get a reply from JB. I've mailed her also, other concerned citizens should do the same.
 

Digout

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Accountancy crime is the same no matter what Country you are in.
In real countries, yes. Sadly we are not in one of those, this is an insular gombeen infested backwater where the boys run the show for the boys.
 

SAHM

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An financial audit is an examination of a body or legal entity resulting in the publication of an INDEPENDENT opinion on whether or not that bodies finances are RELEVANT, ACCUARATE, COMPLETE & FAIRLY REPRESENTED.

Now it doesn't matter how Merrill Lynch or the Professional bodies want to dress it up. Merrill Lynch was not Independent and should have declined the business and secondly they certainly did not carry out any kind of meaningfull work on Anglo.

They certainly would not have passed their Accountacy professionals with the clap trap of an opinion they issued.
 


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