ILP "loan" to Anglo

Gone West

Why would ILP give them this loan?
Was it just to delay the failing of the bank, or was there some other reason.

Also, I have heard it said in passing that there is a lot more to come out.
A couple of solicitors(one Irish) were talking about this today, tapped their noses, passed significant looks, and wouldn't talk about it. But they were quite adamant that there is a lot more dodgy things to come out.

I'd well believe it, but can anybody pass on any rumours they've heard. Just to shoot the breeze, like.

hawkmoon269

FuzzyLogic wrote: »

Why would ILP give them this loan?
Was it just to delay the failing of the bank, or was there some other reason.

Anglo had helped out ILP previously, when the latter had been finding it difficult to source funding in the interbank market.

FuzzyLogic wrote: »

A couple of solicitors(one Irish) were talking about this today, tapped their noses, passed significant looks, and wouldn't talk about it. But they were quite adamant that there is a lot more dodgy things to come out.

I'd well believe it, but can anybody pass on any rumours they've heard. Just to shoot the breeze, like.

Instinct alone tells me there is more to come out, but I have no inside knowledge.

johnnyskeleton

FuzzyLogic wrote: »

Why would ILP give them this loan?
Was it just to delay the failing of the bank, or was there some other reason.

Word is that the former regulator encouraged the banks to help each other out by borrowing and lending off each other to narrow the gap between customer deposits and loans. To give an example, if I have €50 loaned out and only €10 on customer deposit that looks bad as a ratio of 5:1. If I lend €50 to my mate who places it on deposit with me, that brings my loans up to €100 and my deposits to €60 which is a ratio of 5:3, which looks much better. Of course, I only have to do this when my accounts are being prepared - it would make no sense having this on my loan book all the time.

FuzzyLogic wrote: »

Also, I have heard it said in passing that there is a lot more to come out.
A couple of solicitors(one Irish) were talking about this today, tapped their noses, passed significant looks, and wouldn't talk about it. But they were quite adamant that there is a lot more dodgy things to come out.

There probably is a lot more to come out, but unless those two solicitors are involved high up in banking circles or have worked for the major banks I doubt they know any more than a well informed joe on the street.

Time Magazine

Moved to Banking.

daveirl

This post has been deleted.

BuffyBot

Already covered previously.