A Warning To The Greens!

September 25, 2009

TANAISTE Mary Coughlan approved a ‘golden handshake’ payment worth almost €1.1m for former FAS chief Rody Molloy without taking legal advice.
This was despite both Ms Coughlan and Taoiseach Brian Cowen claiming the threat of legal action from Mr Molloy was the key reason for agreeing the massive settlement.
Mr Molloy received a pension top-up worth €1m, bringing his annual pension for life up from €100,000 a year to €111,000 a year. He also got an enhanced tax-free lump sum of €333,000 and an ex-gratia (by favour or voluntary) payment of €111,000.

italics = my text

 

http://www.independent.ie/national-news/coughlan-backed-molloy-deal-without-legal-advice-1896542.html

“TANAISTE Mary Coughlan approved a ‘golden handshake’ payment worth almost €1.1m for former FAS chief Rody Molloy without taking legal advice.

This was despite both Ms Coughlan and Taoiseach Brian Cowen claiming the threat of legal action from Mr Molloy was the key reason for agreeing the massive settlement.

Mr Molloy received a pension top-up worth €1m, bringing his annual pension for life up from €100,000 a year to €111,000 a year. He also got an enhanced tax-free lump sum of €333,000 and an ex-gratia (by favour or voluntary) payment of €111,000.”

http://www.herald.ie/national-news/euro630000-golden–handshake-for-the-bungling-banks-watchdog-pat-neary-1635637.html

“Wednesday February 11 2009

As the Irish financial crisis continues to worsen there are times when it feels like we are all living in a madhouse. Pat (never Paddy) Neary, the Financial Regulator, was forced to retire at the end of last month and got a massive €630,00 pay-off to go quietly.

It had transpired that his office had known about the secret directors loans of up to €129m to ex-Anglo Irish Bank chairman Sean FitzPatrick for at least 11 months.

Yes folks, instead of being drummed out of the public service for failing to do the job he’d been given and presiding over the worst banking crisis in Irish financial history, Neary gets a massive golden handshake.”

http://www.independent.ie/national-news/fingleton-cannot-be-forced-to-repay-83641m-1875146.html

“By Joe Brennan, Fionnan Sheahan and Grainne Cunningham

Wednesday September 02 2009

FORMER Irish Nationwide chief Michael Fingleton cannot be legally forced to hand back a controversial €1m bonus despite promising to do so.

The revelation that Irish Nationwide is legally powerless to demand he repay the cash sparked a wave of outrage yesterday.

It is also a source of acute embarrassment for Finance Minister Brian Lenihan who is faced with the prospect of pumping millions of euro of taxpayers’ money into Nationwide to keep it afloat.

Government sources admitted last night there was no legal way for either Irish Nationwide or the State to make Mr Fingleton repay the money.”

Do you see a pattern in the above? It appears the legal profession has mastered the art of extracting the maximum from the public purse in return  for coming to an agreement with the powers that be and those found acting in a manner worthy of their resignation.

There are many more similar examples where those responsible for the collapse of the banking system are not only getting away with it scot free but, as in the above cases, getting compensation from the tax payer in return for their departure.

No public enquiry, no Senate hearings, no Public Accounts Committee investigations, no leading away in handcufss of those,  at the same time as milking huge bonuses e.g.  from Anglo Irish, used perhaps the same funds for  insider trading in the form of the granting of huge loans to themselves, thereby compromising their independence,  moral integrity and legal standing as directors of the bank.

But you aint seen nothing yet! Because NAMA proposes ripe conditions for similar pay offs and trade offs that will further cost tax payers untold billions if NAMA goes through.

Those subject of toxic loans with their legal teams are already bracing themselves for the windfall payoff they will extract in return for agreement to stay out of court and c ome to agreeement with NAMA evaluators.

This will be a toxic, legal mess of gargantuan proportions with legal fees and settlements likely to be a pittance compared to the estimate by Brian Lenihan of  47€ billion for loans whose real value could be sub 30€ billion. But owners of the toxic debt will extract a huge payment in return for settling.

You think spending is out of control now, wait till NAMA gets going and the real blood letting of the Irish tax payer begins.

Hank Poulson, US Treasury Secretary, 2006 – 2009, on 14th October, 2008 announced that the US to restore confidence in their financial system, would ‘purchase equity stakes in a wide variety of banks and thrifts’ using diverted money previously earmarked for the purchase of toxic assets. This followed the example alongside the bank guarantee scheme set by Gordon Browne,UK Prime Minister and Alistair Darling, Chancellor, in their response to the financial crisis.

These models have averted financial melt down and we should follow them even if it means in certain cases equity stakes that will lead to nationalisation of some banks. For both UK and US tax payers there is some hope at the end of the tunnel their investment will be rewarded. This is a successful model that has restored confidence that has avoided meltdown. It will also allow these governments to proactively regulate the banking system to avoid the mistakes of the past.

 Both the US and the UK have avoided the mistakes embodied in the NAMA approach. There is no reason for us to stupidly pay over the odds for toxic loans to bailout banks and shareholders and developers who have gotten us into this mess and to finance them with tax payers money that will only persuade them to perpetuate those mistakes.

Hopefully the Greens  will pull the plug on NAMA.  If so, they will have done great service to this country and,  in particular,  to its young people,  for which they will deserve our respect. If NAMA goes through it will be a small satisfaction to know the Greens were warned here!

They can’t say they weren’t warned!

 

rgds

Colm

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