The True Cost of Winding Down Anglo

April 2, 2010

Wall Street Journal, Thursday – Monday, April 1 -5, p4

Contrary to Lenihan’s propaganda that a wind down of ’systematically important banks’ would cause catastrophe for Ireland, its actually being proposed as a solution response to banking crises by both German Finance Minister Wolfgang Schauble and his French counterpart, Christine Lagarde in their talks Wednesday in Berlin.

“The French and German governments said they want to be able to intervene early if a bank is tottering and to wind down systematically important banks, including cross border ones. The aim is to “impose market discipline” and protect public funds.”

This appears to me to be a reasonable response especially having regard to the prospect of winding down crazy elephant banks like Anglo without the comfort of salvation through ripping off taxpayers!

Schauble and Lagarde also plan an annual levy for banks’ balance sheets to protect banks in future crises.

Lenihan propaganda is to pour scorn on those who ‘are talking up’ our inability to pay the escalating costs of saving Anglo, currently €20bn and climbing as we speak.

Lenihan propaganda is that its impossible to contemplate a wind down. More lies given this is being proposed as a 2 prong response by his counterparts in France and Germany.

Lenihan ‘go it alone’ policy of running the Anglo digout as his own FF banker croney and DoF croney show, with the crazy guarantee for Anglo, amounts to treason perpetrated by FF against Irish taxpayers.

FF continues the propaganda of ‘costing less to keep Anglo alive than to wind it down’ without publishing alongside the costs of saving Anglo, the approximated costs of winding Anglo down in the different scenarios available for this, such as doing this immediately, short term, medium term, what bond obligations, debtors need to be honoured.

Compared to his French and German counterparts Lagarde and Schauble, Lenihan is a leprechaun intent on ripping off bigtime Irish taxpayers, ripping our economy apart with Ponzi, big Pyramid of Sand, NAMA.

His proposals for Anglo are currently under investigation, as is Anglo, by Europe.

If both Anglo and NAMA get the clean bill of health from Europe, though I’ve enthusiastically always given the EU project my support, it will switch me from being a supporter of EU, to one who realises the Age of Big Brother is closer to us than we think.

Bit of a Hobson’s choice really, Big Brother or Local Rip Off of taxpayers by the NAMA Ponzi, pyramid Anglo scam. Whether you regard FF as totally incompetent, or totally corrupt, as regards their response to the banking crisis, its take your pick.

I pick ‘incompetent’. The night of the guarantee should have been the time the phone to Lagarde and Schauble was picked up. The solo run that began at that moment has us in the mess we are in now.

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