Regulator-banks can offset property losses

Edo

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Neary says banks can offset property loan losses - The Irish Times - Tue, Oct 14, 2008

""Ireland's banks are solvent and will be able to offset potential losses on property loans with their better-performing loans, the Financial Regulator said today.

“It's important to state that all banks are solvent and that all savings and deposit are fully safe and secure,'' Pat Neary told an Oireachtas committee today.

The Government has guaranteed about €440 billion in deposits and borrowings of

the six biggest banks to shore up confidence in the financial system that has been battered by the credit crunch. The guarantee was extended to the Irish units of international banks, including HBOS Plc and Royal Bank of Scotland Group Plc.


The regulator said it will place additional supervisors within the State’s banks to monitor operations and tighten reporting requirements on capital, asset quality and individual large loans.

More than one-third of the €39 billion Irish banks have loaned to property developers and construction companies is secured directly on the underlying property, according to the regulator.

While there will “undoubtedly” be some losses on these exposures, these would occur over a number of years will be “offset by profits on performing loans over the same period,” Mr Neary said.""




Anybody convinced?

And What about these 20 extra regulatory supervisory staff with banking experience who are going to be placed in the banks - jobs for the boys? - ole chaps network - dont rock the boat.

Having listened to the regulator Im not brimming with confidence about this.
 


cyberianpan

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Has he any hard evidence or is he just parroting back what the big boys told him in the pub last night ?

If the taxpayer is guaranteeing the banks we are entitled to see the evidence.

cYp
 

adrem

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Why has this guy (Pat Neary) not lost his job already? Top man in financial regulator - financial meltdown - taxpayers and state have to guarantee the banks. . . eh . . . that'd be a fairly clear cas of not doing your job mate.

I'd question what the consumer director side was doing but lets give them the benefit of the doubt for the moment and focus on the real regulators - the prudential side.

The prudential director (Con Horan) - that's the guy that's supposed to make sure that the financial industry is being operated prudently - that'd be a big NO then for the last couple of years.

Lets also add in the next level of guys who work for Con. Head of Banking supervision is Mary Burke - bye bye Mary. Assisting Mary is Frank Brosnan and Billy Clarke.

Then lets pop over to the markets supervision man - Mr Martin Moloney - again assisted by Sharon Shanley.

They can't really tell us that they have been doing their job - can they? Surely their job is to make sure this didn't happen and therefore they failed miserably. I know we don't sack civil servants we move them to other departments but surely to God, Lenihan has to announce a radical overhaul in the operation of the regulator.

These guys were set up during a major revamp of regulations at the time which they managed to hamstring at the time (those older members will remember that new single regulator was supposed to replace the central bank but ended up being populated by the central bank officials instead !). Lenihan needs to perform a cull - even if it's only to rebuild confidence that someone is tasked with watching to make sure this doesn't happen again.

btw - lest anyone be panicking re the names above - they are all taken from IFRSA's publicly available website.
 

junketman

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Neary says banks can offset property loan losses - The Irish Times - Tue, Oct 14, 2008

""Ireland's banks are solvent and will be able to offset potential losses on property loans with their better-performing loans, the Financial Regulator said today.

“It's important to state that all banks are solvent and that all savings and deposit are fully safe and secure,'' Pat Neary told an Oireachtas committee today.

The Government has guaranteed about €440 billion in deposits and borrowings of

the six biggest banks to shore up confidence in the financial system that has been battered by the credit crunch. The guarantee was extended to the Irish units of international banks, including HBOS Plc and Royal Bank of Scotland Group Plc.


The regulator said it will place additional supervisors within the State’s banks to monitor operations and tighten reporting requirements on capital, asset quality and individual large loans.

More than one-third of the €39 billion Irish banks have loaned to property developers and construction companies is secured directly on the underlying property, according to the regulator.

While there will “undoubtedly” be some losses on these exposures, these would occur over a number of years will be “offset by profits on performing loans over the same period,” Mr Neary said.""




Anybody convinced?

And What about these 20 extra regulatory supervisory staff with banking experience who are going to be placed in the banks - jobs for the boys? - ole chaps network - dont rock the boat.

Having listened to the regulator Im not brimming with confidence about this.
Offset against what? What they pay in tax on profits this year?

Let me get this straight, these banks speculated and gambled and lost big time. And now they just get let off and don't have to pay as much tax this year. If I lost all my money gambling on horses last year, do you think the taxman would listen to that excuse and write off my losses against my tax this year?
 

Louth Planner

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Why has this guy (Pat Neary) not lost his job already? Top man in financial regulator - financial meltdown - taxpayers and state have to guarantee the banks. . . eh . . . that'd be a fairly clear cas of not doing your job mate.

I'd question what the consumer director side was doing but lets give them the benefit of the doubt for the moment and focus on the real regulators - the prudential side.

The prudential director (Con Horan) - that's the guy that's supposed to make sure that the financial industry is being operated prudently - that'd be a big NO then for the last couple of years.

Lets also add in the next level of guys who work for Con. Head of Banking supervision is Mary Burke - bye bye Mary. Assisting Mary is Frank Brosnan and Billy Clarke.

Then lets pop over to the markets supervision man - Mr Martin Moloney - again assisted by Sharon Shanley.

They can't really tell us that they have been doing their job - can they? Surely their job is to make sure this didn't happen and therefore they failed miserably. I know we don't sack civil servants we move them to other departments but surely to God, Lenihan has to announce a radical overhaul in the operation of the regulator.

These guys were set up during a major revamp of regulations at the time which they managed to hamstring at the time (those older members will remember that new single regulator was supposed to replace the central bank but ended up being populated by the central bank officials instead !). Lenihan needs to perform a cull - even if it's only to rebuild confidence that someone is tasked with watching to make sure this doesn't happen again.

btw - lest anyone be panicking re the names above - they are all taken from IFRSA's publicly available website.
People keep commenting that the government and regulators can some how instill confidence in the markets and get the thing back on track. Well, look at all the attempts by world goivernments to bring confidence to the markets. After BILLIONS, probably above a trillion now, the banking industry is no better off, in fact, it is worse off. The only ones who can bring confidence back to the system are the banks themselves. They need to show everything and bring clarity back to the real value of their operations. Only then can a line be drawn under this and people know the true state of play in the banks, what it will definitely take to get them back on track and what it will cost to let the bad ones fail. Other than this I can only see many more rallying calls to save their sorry little a$$es.
 

Frank Galton

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The prudential director (Con Horan) - that's the guy that's supposed to make sure that the financial industry is being operated prudently - that'd be a big NO then for the last couple of years.
Worth looking 3 years later to see where they are:

It has emerged that Con Horan, special adviser to the Financial Regulator, is moving to London to take a senior job in the European Banking Authority (EBA), the new EU body for banking supervision.


But Horan was Prudential Director in charge of bank regulation under Patrick Neary. He had hands-on responsibility for bank regulation. He is now getting his plum London job despite Patrick Honohan’s damning conclusion (in his report) that “It is clear that a major failure in terms of bank regulation and the maintenance of financial stability occurred.”
Cormac Lucey: Con Horan's Plum London Job
 

gerhard dengler

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European Banking Authority.

I wonder have the EBA vetted this chancers performance in his role at the Irish Central Bank in the years prior to this country's banking/financial collapse?
 

SideysGhost

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Jobs for the boys, piggies at the trough, doesn't matter if you can do the job or not as long as you keep your mouth shut and don't get in the way of maffioso plundering, don't rock the boat and we'll make sure yer looked after....

It's firing squads we need, and it seems like we need them not just in Ireland but all over the stinking corrupt EU.
 

Frank Galton

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And there's more

Meanwhile former Consumer Director, Mary O’Dea, is flying off to Washington DC to join the IMF as alternative executive director.
Cormac Lucey: Mathew Elderfield: Talking the Talk but Not Walking the Walk

Further background here

Mary O’Dea and the IMF – The Story

Rumour has it there were no promotion prospects internally at the now expanding Central Bank, so she was bumped off to Washington. Apparently the job is a rather nice 3 years in Washington DC tax-free with expatriate benefits (including private schools).
 

voodoochile

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This is ************************************g unbelievable.............oh wait, no it's not. Someone involved in the financial industry (on whatever side of the fence) goofs up in a big way and suffers absolutely no consequences. In fact they get rewarded for their failures.

Pretty standard practice really. I wish I could get jobs like those. Win, win, win and everyone else picks up the losses.

This guy should've been sacked long ago.
 


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