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Ireland In Secret ECB Pact: Here Is How the New Anglo Deal Will Work


YouKnowWhatIMeanLike

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So we know that the new deal to pay for the Anglo Irish Bank debt is illegal as well. but here are the details about how the ECB will try to bend its own rules to absorb the Anglo Irish Bank debt. Yes it's complicated and illegal as well but they like it because its not as transparent and obvious breach of the rules as the promissory notes ;)

Here it goes: Ireland will via its central bank push the Anglo Irish Bank debt to other European central banks that have "free capacity" like the German Bundesbank. Now we know why Weidmann didn't like that little Anglo Irish package they shoved up his ar$e.

To avoid breaching the ECB rules, the [Irish] Central Bank will be allowed to borrow unused capacity from its counterparts in the 17-member currency union ... the extra capacity would be provided by the Eurosystem as a whole .. The procedure is permitted under the confidential Agreement on Net Financial Assets, or ANFA.
 

Howya

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The ECB have been bending the rules all over the place, so no real suprise. My view is that as long as Ireland is picking up the tab for the bank bailout then the ECB will use smoke and mirrors to keep it that way. Anything but share the cost.
 

gerhard dengler

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The ECB have been bending the rules all over the place, so no real suprise. My view is that as long as Ireland is picking up the tab for the bank bailout then the ECB will use smoke and mirrors to keep it that way. Anything but share the cost.
And this government will continue to use the ECB's stance as an ongoing excuse.
 

Howya

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Can anyone explain the downside - to Ireland and to the ECB - of the anglo deal being declared illegal?
If you believe Noonan and co that the savings from the PN deal will be 1bn then if the PN deal is overturned then those savings will be lost.
 

YouKnowWhatIMeanLike

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Can anyone explain the downside - to Ireland and to the ECB - of the anglo deal being declared illegal?
what goes up must come down. if Ireland doesn't behave the ECB will sell off Seanie's leftovers rather quickly.
 
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LamportsEdge

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I guess it is a bit like the 'loans to directors' being shifted off the books of one bank at year end and transferred to another bank's books only to be transferred back once the auditors have gone out the door....

One wonders whether the German taxpayer will be happy with the Bundesbank's spare debt capacity being loaned out to the PIIGs?

I suspect not. Then again they may not be told directly.
 

Spanner Island

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Feb 22, 2011
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F*** it...

The world has pretty much failed spectacularly to face up to and address the real problems that triggered the crash...

Instead they've all been pissing in the wind ever since because they allowed the precious global financial sector to take precedence over everything else...

The result is the global financial sector is as f***ed up and corrupt as it ever was and is probably going to plunge us back into turmoil again before along...

And of course the proposed Cypriot solution (whether it was dreamt up in Brussels, Berlin or Nicosia) has crossed a line that may well lead to major and irreversible ructions ahead...
 

LamportsEdge

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F*** it...

The world has pretty much failed spectacularly to face up to and address the real problems that triggered the crash...

Instead they've all been pissing in the wind ever since because they allowed the precious global financial sector to take precedence over everything else...

The result is the global financial sector is as f***ed up and corrupt as it ever was and is probably going to plunge us back into turmoil again before along...

And of course the proposed Cypriot solution (whether it was dreamt up in Brussels, Berlin or Nicosia) has crossed a line that may well lead to major and irreversible ructions ahead...
Most succinct analysis I've seen yet.
 

YouKnowWhatIMeanLike

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Apr 13, 2011
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I guess it is a bit like the 'loans to directors' being shifted off the books of one bank at year end and transferred to another bank's books only to be transferred back once the auditors have gone out the door....

One wonders whether the German taxpayer will be happy with the Bundesbank's spare debt capacity being loaned out to the PIIGs?

I suspect not. Then again they may not be told directly.
Angela is not going to tell them until she (thinks) is re-elected Reichskanzler.
 

LamportsEdge

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Just like she said no German Government would bail out a German bank with taxpayers money. And then promptly did just that with Hypovereinsbank.
 

ManUnited

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Nov 16, 2009
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Can anyone explain the downside - to Ireland and to the ECB - of the anglo deal being declared illegal?
If it was illegal it wouldn't have happened, but the only thing that could happen is the Irish CB would have to sell the bonds for what it could get, the Irish gov would have to pay in the difference ,and the ECB would say meh.
 
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