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NamaWineLake: "Anglo is in breach of the terms of its banking licence"


Windowshopper

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According to this article in NamaWineLake the Irish Bank Resolution has been in breach of its banking since at least the 30 June 2012.

So let’s get this clear. We have poured €34bn into IBRC including €30bn of promissory notes on which we are scheduled to pay a further €17bn in interest between now and 2031. IBRC has closed it branches, sold most of its deposits and doesn’t take new deposits, doesn’t advance new loans and is simply running down its loan book. It’s dead.

It is supposed to keep its banking licence to continue to obtain loans from the Central Bank secured on its promissory notes. No banking licence means no Central Bank loans. And of course without Central Bank loans, IBRC would collapse tomorrow, its creditors would get paid by whatever assets remained in the bank.

You might have thought that the €663,000-a-year chief executive officer of IBRC and his €500,000-plus a year juniors might have at least have been able to ensure IBRC complied with the terms of its banking licence.

Somewhere up in Cavan this morning, and perhaps in a court room in Dublin 1, there may be eyebrows raised at a bank in breach of its banking licence terms, attempting to hold to account the probity of others. And what on earth is governor of the Central Bank of Ireland, Patrick Honohan doing about breaches that appear to be permitted for at least seven months and are still ongoing"
Anglo is in breach of the terms of its banking licence « NAMA Wine Lake
 


wombat

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What is the exact nature of its breach?
Doesn't matter, its the economists version of discussing how many angels can dance on the head of a pin.
 

ShoutingIsLeadership

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The most shocking element of this story is the implication that everything it did before that date WASN'T in breach of its banking licence.
 

Manstein

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Again it is Pearse Doherty who is asking the pertinent questions on this debacle and again Baldy is stonewalling. If IBRC is in breach of its banking licence then why is it allowed to continue without resolving the matter? Is the state immune from its laws?
 

Hewson

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Again it is Pearse Doherty who is asking the pertinent questions on this debacle and again Baldy is stonewalling. If IBRC is in breach of its banking licence then why is it allowed to continue without resolving the matter? Is the state immune from its laws?
Heck no. Look at all the culprits brought to court after the Hep C scandal, the Beef Tribunal report, the Mahon Report, the Morris Tribunal report . . .

Ad nauseam. Ireland spends much of its wealth investigating wrongdoing with the sole purpose of doing nothing about it.
 

statsman

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Doesn't matter, its the economists version of discussing how many angels can dance on the head of a pin.
"No banking licence means no Central Bank loans."

From my reading of the OP, it has failed to retain/renew its banking license.
Any sane system would have a specific 'wind-down' licence for banks in this situation.
 

ManUnited

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What is the exact nature of its breach?
Serious conflict of interest. Apparently Seanie was a shareholder in Toys-r-Us and bought the presents for the kiddies xmass party.Cui bono. Pearse is following the money as we speak.
 

Radix

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Heck no. Look at all the culprits brought to court after the Hep C scandal, the Beef Tribunal report, the Mahon Report, the Morris Tribunal report . . .

Ad nauseam. Ireland spends much of Germany's wealth investigating wrongdoing with the sole purpose of doing nothing about it.

Fixed that for you Hewson...

:)
 

EUrJokingMeRight

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I do not FOR A SECOND beleive that Sinn Fein would be the ones to highlight unlawful behaviour such as this.

Surely we can only trust FG/FF/LAB to look after the well being of the taxpayer.

Usual SF Nonsense I gather.
 

Windowshopper

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Heck no. Look at all the culprits brought to court after the Hep C scandal, the Beef Tribunal report, the Mahon Report, the Morris Tribunal report . . .

Ad nauseam. Ireland spends much of its wealth investigating wrongdoing with the sole purpose of doing nothing about it.
But it a price our politicians are willing to pay to avoid jail. . .
 

ibis

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"No banking licence means no Central Bank loans."

From my reading of the OP, it has failed to retain/renew its banking license.
No, it's not fully compliant, but hasn't lost its licence. That's not a particularly unusual situation for any kind of licence - as long as the licence-granting body is aware of the situation, and accepts both the reasons for non-compliance and that the non-compliance is not too serious, it would be unusual for any licence to be revoked.
 

ibis

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Any sane system would have a specific 'wind-down' licence for banks in this situation.
A sane country would have had a system for winding down banks in 2008.
 

Analyzer

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A sane country would have had a system for winding down banks in 2008.
We have a system. It is called bankruptcy.

But Comical Lenny decided he would not allow the Bank of the Ballybrit Tent go bankrupt.

And Permo helped muddy the waters, with their loan that "matured" in something like 72 hours, to make Anglo look solvent.
 

Radix

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The most shocking element of this story is the implication that everything it did before that date WASN'T in breach of its banking licence.
The most shocking aspect is that the debts of a private bank are forced onto the public by their own representatives.

There is something rotten about the nature of our political representation when this injustice is forced upon people.
 

Thac0man

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No, it's not fully compliant, but hasn't lost its licence. That's not a particularly unusual situation for any kind of licence - as long as the licence-granting body is aware of the situation, and accepts both the reasons for non-compliance and that the non-compliance is not too serious, it would be unusual for any licence to be revoked.
In the case of Anglo, maybe a case of 'quod est necessarium est licitum'?
 

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