International reaction to Anglo tapes revelations
What media abroad are reporting over release of recordings of failed bank’s executives
The British and the Germans were among those appalled at the guarantee, believing that cash would flow to the apparent safety of Irish banks.
And it did, but only for a while.
In the end, the reality of the bankrupt nature of the Irish banks and building societies dawned.
However it was too late to save the now-exposed Irish taxpayer, who has now suffered five years of tax rises and spending cuts as a result.
And if there is one financial institution that really annoys people it is Anglo Irish Bank, the one favoured by the property developers.
Headed ‘Anglo Irish bankers ‘tricked’ government into bailout’, business editor Alistair Osborne writes:
Two top executives at the stricken Anglo Irish Bank have been caught on tape allegedly admitting that the lender suckered the Irish government into a €7 billion (£6 billion) bail-out knowing that far more was needed.
The country’s prime minister Enda Kenny yesterday said he understood the “rage” of the Irish people at the recorded talks between two former Anglo executives laughing and joking at the height of the bank’s funding crisis in September 2008.
The partial transcripts, published in the Irish Independent newspaper, appeared to show the bank’s then head of capital markets, John Bowe, admitting that Anglo had deliberately hoodwinked the government over the size of the bailout required.
Speaking to Peter Fitzgerald, Anglo’s former head of retail banking, Mr Bowe appears to describe how the bank cynically lured the government into a €7 billion rescue in full knowledge that the sum would be nowhere near enough to save the lender. The thinking, he suggested, was that once Dublin had been “pulled in”, it would have no choice but to keep picking up the tab.
In the end, the Irish government was forced to pump €30 billion into Anglo and roughly the same amount into Ireland’s two other cash-strapped banks, Bank of Ireland and Allied Irish Bank – rescues that brought the entire Irish economy to its knees.
Headed ‘Irish bankers ‘hoodwinked’ government over bailout, secret recordings show’, Henry McDonald writes:
A top banker with the financial institution that almost bankrupted Ireland boasted that he had picked the figure of €7 billion (£5.9 billion) they told the Irish government was needed to rescue the Anglo Irish Bank “out of his arse”.
Taped phone calls between two senior executives at Anglo Irish have compounded suspicions in the Republic that bankers lured the then Fianna Fáil led government during the crash of September 2008 into a costly financial trap by saving the debt-stricken bank with public money.
In the end the Irish taxpayer was forced to hand over €30bn to save Anglo Irish Bank from collapse and resulted in the state going cap in hand to the International Monetary Fund, the European Central Bank and the EU to save the country from national bankruptcy.
Wall Street Journal
The Irish government is determined to implement new laws to help launch the country’s first wide-ranging inquiry into the causes of its banking debt crisis and help assuage “the rage and the anger” of people deeply affected by it, Irish Prime Minister Enda Kenny said Monday.