Pat Rabbitt drops bombshell earlier on RTE1 This Week

RonMexico

http://www.rte.ie/news/av/2010/1128/thisweek.html#

15min in. Derivatives problem in Irish Banks. Pension reserve fund used as security already?:eek:

"Labour Justice Spokesperson Pat Rabbitte said the current crisis had its genesis in the bank guarantee scheme.
Mr Rabbitte also expressed concern that the €19bn NPRF might be used to pay back cash owing as a result of derivatives some of the banks may have entered into.
He said reports are circulating that banks may have sold off huge chunks of their loan books by way of these complex financial instruments
Mr Rabbitte said that last thing he wants to see is the fund being made available to banks so they can replenish cash they do not have but is due arising from these derivatives."

link: http://www.rte.ie/news/2010/1128/economy.html

Dorcha

RonMexico wrote: »

http://www.rte.ie/news/av/2010/1128/thisweek.html#

15min in. Derivatives problem in Irish Banks. Pension reserve fund used as security already?:eek:

According to today's Irish Examiner the remaining pension reserve funds of 15 billion will be used to support the banks. After that the Pension Reserve Fund will be completely empty.

http://www.irishexaminer.ie/

yosemite_sam

We'll be selling the kids next

eoinbn

Dorcha wrote: »

According to today's Irish Examiner the remaining pension reserve funds of 15 billion will be used to support the banks. After that the Pension Reserve Fund will be completely empty.

http://www.irishexaminer.ie/

It's bad for us but I can understand why they would want us to do it. Lets face it, we are going to default- not now but in a few years. The IMF knows this, as do the EU. They aren't going to give us money that they know we are going to default on while we have €20bn sitting in foreign shares.

Bob_Latchford

to be honest wouldnt surprise me at this stage if pension fund has empty.

Dob74

RonMexico wrote: »

http://www.rte.ie/news/av/2010/1128/thisweek.html#

15min in. Derivatives problem in Irish Banks. Pension reserve fund used as security already?:eek:

"Labour Justice Spokesperson Pat Rabbitte said the current crisis had its genesis in the bank guarantee scheme.
Mr Rabbitte also expressed concern that the €19bn NPRF might be used to pay back cash owing as a result of derivatives some of the banks may have entered into.
He said reports are circulating that banks may have sold off huge chunks of their loan books by way of these complex financial instruments
Mr Rabbitte said that last thing he wants to see is the fund being made available to banks so they can replenish cash they do not have but is due arising from these derivatives."

link: http://www.rte.ie/news/2010/1128/economy.html

When FF are kicked out, its going to be interesting to see what is really going on.
No case taken to the courts against any senior Bank exec's?
FF are into it up to there necks.

The Volt

As far as I'm aware of, Labour wanted to use some of it as a strategic investment bank but that proposal was ignored with the government saying that the fund was "too valuable to society to be touched".

Now it appears that they're clearing the whole thing out without a cent going towards job creation. :mad:

nice_guy80

bloody hell

these idiots need to be take out of kildare street in the morning

they are willing to sell the country

Zynks

That is bad alright. But the worst will be if/when we find out that state companies are being used as collateral for a bailout that we know we can't afford... That would be the silverware gone into the same whole as the NPRF, and at least 20-30% of government intake for coming years.

If all of this is true, there is no point saying that enough is enough, 'cause there will be nothing else left up for grabs.

kaiser sauze

We are being toldagreed to use the NPRF first, then we are over a barrel for whatever rate they offer at the time.

Gurdyiev is saying that it is not enough, I believe he is right. Again.

lmimmfn

Why the hell are we still bailing out banks? arrgggghhhhh

We wouldnt need any IMG/ECB intervention apart from bank bailout crap and it should have been upto the ECB to regulate that as its their money. FFS

Carolyyn

God, this band horror story is going from bad to worse.

That's what happens when you have a couple of small town solicitors and school teachers running a country in a time of absolute crisis. We could cruise along with these buffoons in charge in the good times but not now. The banks still running rings around them and making total fools of all of us. I really think it's pure incompetence and stupidity on the part of the government and they're in denial about what they signed off on in 2008. Now they'll do anything to cover this up and hence we've arrived at the verge of default.

later12

eoinbn wrote: »

It's bad for us but I can understand why they would want us to do it. Lets face it, we are going to default- not now but in a few years.

In fairness, it's time this rumour was ended, it's getting more likely by the day that we will not.
What will happen is that we will restructure our debt as high as senior bondholder level and some of it will inevitably be written off - that includes IMF debt, and there is nothing unusual about IMF debt write-off.

This is not as serious as defaulting because the constrained or witheld bond renumeration is negotiated with bondholders - it's not a simple case of 'not paying up'.

edanto

yosemite_sam wrote: »

We'll be selling the kids next

There's a chance that this guy was referring to Jonathon Swift's satire

http://economistsview.typepad.com/economistsview/2010/11/paul-krugman-eating-the-irish.html

Paul Krugman wrote:

What we need now is another Jonathan Swift. Most people know Swift as the author of “Gulliver’s Travels.” But recent events have me thinking of his 1729 essay “A Modest Proposal,” in which he observed the dire poverty of the Irish, and offered a solution: sell the children as food. “I grant this food will be somewhat dear,” he admitted, but this would make it “very proper for landlords, who, as they have already devoured most of the parents, seem to have the best title to the children.”
O.K., these days it’s not the landlords, it’s the bankers — and they’re just impoverishing the populace, not eating it. But only a satirist — and one with a very savage pen — could do justice to what’s happening to Ireland now.
[snip...]
But Ireland is now in its third year of austerity, and confidence just keeps draining away. And you have to wonder what it will take for serious people to realize that punishing the populace for the bankers’ sins is worse than a crime; it’s a mistake.

Carolyyn

The IMF, EU assistance should have been sought at the start of the crisis, as Latvia and Iceland did. Both countries got outside assistance in time and have managed to stabilise their economies and are now looking forward to economic growth.
On the other hand all the Irish austerity efforts since 2008 have made no difference whatsoever, from a government determined to trample on the populace in order to serve the interests of the banking sector.