Hold on there!

October 7, 2010

I heard Elderfield the other day indicate subordinated bondholders in Irish banks would get burnt, but government policy was to protect senior bondholders. However, he elaborated on senior bondholders somewhat disingenuously by saying that while they wouldn’t be compelled to negotiate, they might indeed voluntarily enter negotiation. Make of these comments what you will.

http://bit.ly/dnMjmK Already there is a backlash against the mild regulatory reforms Elderfield has proposed re NEDS. As for Dukes, ‘more bankxster than the bankers themselves’ he’s already ‘cribin and moanin’ re regulatory reforms.

Overall, David’s article http://bit.ly/aCK0az (comment cbweb)  is making it too hard going to understand why government adopt the position on the banks they do. Its rather simple, there is indeed a financial elite running the country.

To unravel the mystery follow the money trail of Anglo’s top twenty toxic developers. They fueled the boom with political influence that gave Section 23’s, property tax incentives and their own Anglo/INBS/AIB ATM machine access to unlimited funds.

http://bit.ly/bxpdKW See the top ten referred to here. They owned both Church & State. Nick Webb writes:

“NAMA-BOUND property developers Derek Quinlan, Treasury Holdings’ Johnny Ronan, Ballymore Properties’ Sean Mulryan and Paddy McKillen, one of the so called “Anglo 10″, have all emerged as major donors to the Vatican.

The property developers were named in the top 10 borrowers whose loans were bound for Nama in the first wave of transfers last week. Some €16bn worth of loans associated with the 10 biggest borrowers are set to be transferred shortly.

The Patrons of the Arts in the Vatican Museums published recently reveals that these troubled property developers provided ‘financial support’ for the restoration of the historic Pauline Chapel in the Vatican Museum.

Fellow donors included former Anglo Irish bank chairman Sean FitzPatrick and the controversial former boss of Irish Nationwide Michael Fingleton.”

Now, its one thing to be declared bankrupt, but its quite another to be declared bankrupt and have the bank renege on obligations to bondholders because of a collective bankruptcy of Ireland’s financial elite! If the bondholders get paid, surely they may have a chance to deal at bondholder tables once again?

The Irish private banking system notwithstanding nationalisation virtually of AIB and Anglo and INBS, is run by the Irish financial elite in favour of the Irish financial, political elite. The banking system has been funded by bondholders like Abramovitch http://bit.ly/9DI7ka. In fact they are treated almost as depositors.

If default happens, do you think they will ever again fund the financial elite that burned them? Same reason they don’t want the IMF or European AAA rated rescue fund inhttp://bit.ly/dy23Zz Its because all these outside bodies have the power to demand change from within Ireland. These changes they know will burn them. Same reason FF are grabbing for consensus at the moment.

We have a http://bit.ly/kdNMM ‘bonfire of the vanities’ situation where the old guard are fighting a rear guard action to retain control of stricken banks, personal wealth and government.

Unfortunately, taxpayers are in the firing line. Its their money that is being bartered in ‘managed’ debt servicing brokerage.

One can speculate about conspiracy theories eg it would be interesting to know who in Ireland, or outside Ireland, Goldman? might have exposure vis a vis investment in hedge funds and CDS to a default on Irish banks? The answer may well come from the same group running the country.

Fact is, democracy has been severely damaged by Ireland Inc’s bankocracy. The truth is in spite of our so-called banking inquiries, we know very little about our banks.

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