Has Noonan got a bad memory?

Biggins

Today...

Noonan: ‘I never promised I’d burn senior bondholders’
Here: http://www.thejournal.ie/noonan-i-never-promised-id-burn-senior-bondholders-279941-Nov2011/

Aaa OK!!!

Noonan intends to burn AIB, Irish Nationwide bondholders
15th June 2011

The Finance Minister says the government will seek to impose losses on senior bondholders at Anglo Irish Bank and Irish Nationwide.

Speaking in Washington Michael Noonan said he has the support of the International Monetary Fund (IMF) for the plan and will now seek the backing of our EU partners.
Up until now bondholders in Irish banks have been protected from losses which have been footed largely by the Irish taxpayer.

But Michael Noonan said in Washington today that the IMF has given its backing to a proposal by the government to burn the senior bondholders at Anglo Irish Bank.

There is €3.5 billion worth of unsecured debt at Anglo and Irish Nationwide which the Minister said are no longer normal banks but are more like warehouses for bad debt.
Michael Noonan said he would be seeking the support of Ireland’s European partners to impose losses on those bondholders.

Question: Has this one man getting as bad a memory as Mr Ahern or is he just getting as crafty as him in word-play?

Ok... so he never PROMISED now... but he as good as did, did he not or am I reading his earlier words/intended words as he'd like them to be construed, wrong?

Liam Byrne

"Burn" is a bull**** prejudicial term coined by FF and latched onto by the media

"Make them face their losses" is the appropriate phrase and approach.

So he may never have said that he'd "burn" them.

He does need to make them face their losses, though, or I'll have no-one to vote for next election.

hallelujajordan

Liam Byrne wrote: »

"Burn" is a bull**** prejudicial term coined by FF and latched onto by the media

"Make them face their losses" is the appropriate phrase and approach.

So he may never have said that he'd "burn" them.

He does need to make them face their losses, though, or I'll have no-one to vote for next election.

It's the same thing . . Burning them is making them face their losses. . . During the summer, Noonan said he was going to make them face their losses . . The governments action in paying out on recent Anglo bonds completely contradicts that position and now todays comments in the Dail appear to be a complete about-face . .

And had you not already ruled out FG in the next election and decided they were not fit to govern . . . ???????

Liam Byrne wrote: »

Would I vote for either current government party again - no; and I've emailed and told them that.

Liam Byrne wrote: »

FG have made horrendous decisions and appear to have a share of corruption and cronyism; nowhere near as much as FF, but certainly enough to be judges as unfit for office in my eyes.

.

Min

All politicians have bad memories.

Only two years ago, Gilmore told the people of Mullingar that their barracks would be safe as he would work to keep it open since it was a key military barracks and they could trust him to stand up for it.

Quinn signed a pledge to not rise student fees earlier this year and they now claim the economic situation has changed.

Trust none of them I'd say, avoid them as much as possible.

FetchTheGin

Noonan is the biggest liar of them all.

Things will never change.

Biggins

Noonan confirms plans to extend bank guarantee

http://businessetc.thejournal.ie/noonan-confirms-plans-to-extend-bank-guarantee-281110-Nov2011/

FINANCE MINISTER Michael Noonan has confirmed his intention to extend the bank guarantee scheme until the end of 2012.
In a press statement this afternoon the minister said the Cabinet had agreed to extend the plan by a year, and would shortly issue a Statutory Instrument which would extend the order for that time.

The plan, originally introduced in controversial circumstances in 2008 and which took effect in 2009, would otherwise have expired by the end of December.
Approval for the move will now also be sought from the European Commission, which had previously given its permission for the scheme to continue until the end of June 2012.
The minister said in his statement, however, that he expected the request to be approved “in due course”.

“As is customary, the Department of Finance has consulted with the European Central Bank on this measure, and has obtained an opinion which inter alia states that ‘taking into account financial stability considerations, a further extension of the ELG Scheme would be beneficial’,” the statement read.

The extension will mean that the existing guarantee, which covers deposits and some senior bonds at the participating institutions, will be extended.
Any bonds issued while the guarantee is in place will also be guaranteed – meaning that the guarantee will continue to take effect for years after the guarantee is withdrawn.
Unguaranteed

The minister separately announced that the participating banks had asked him to make provisions for deposits which are not guaranteed under the ELG scheme.
The banks will initially offer non-guaranteed deposit facilities to corporate and institutional investors, who will acknowledge in writing that their funds are not covered under the government’s extra guarantee.

“These conditions make it crystal clear that any decision to place an unguaranteed deposit with a participating institution is a voluntary one and without prejudice to any guarantee that applies to other deposits under the ELG Scheme,” the Department of Finance said.
The minister added that while the demand for unguaranteed deposits was likely not to be very large, he saw the request as “a very positive sign of a return of confidence in the banks and the sovereign and should be encouraged.”

Personal depositors who have savings of up to €100,000 are covered under a separate, State-run perpetual guarantee.

Personally I think he should have held off the guarantee till the banks that are refusing to play ball with the drop in European interest rate, actually started to play ball and pass it along - but no, he just looks after the banks right away and once again the people on the street get the bad end of the stick!

cyberhog

Guys you are missing a very important piece in the puzzle.

hallelujajordan wrote: »

Noonan said he was going to make them face their losses . .

First of all Noonan never said he would "make" senior bondholders face loses. What he said was....

We have it raised as a very strong issue at the very highest level.

He went on to say

The difficulty is what attitude the European Central Bank may take.

Read the full interview here

http://www.rte.ie/news/2011/0615/noonan2-business.html


And if the ECB didn't like the idea...

Mr Noonan said the Government would not act without the support of European authorities on his plan for burden-sharing. “We have very good relationships with the Europeans at commission and the ECB level and with the IMF. We have negotiated a programme with them and we are fulfilling all of the conditions of the programme,” he said.

http://www.irishtimes.com/newspaper/frontpage/2011/0617/1224299071814.html


So in September the ECB made their feelings on the matter clear when Trichet warned Noonan that burning senior bondholders would damage our standing in the markets.

Mr Noonan said Ireland was now likely to pursue other angles, rather than continuing to press for bondholder losses, because of "strong opposition" from the European authorities who, he said, are "dead set against" a coercive approach.

...

Mr Noonan said that during his meeting with Mr Trichet he raised the issue of burning senior bondholders at the now-defunct bank, but that Mr Trichet's opposition to any burden-sharing had increased significantly.

...

"Trichet said that while the amounts are not big, the risk is considerable," he added. "He said Ireland is doing well and is seen as the model programme country, as reflected in the sharp drop in our bond spreads. He said it would be foolish for us to put all that good work at risk.

http://www.independent.ie/national-news/ecb-defeats-noonan-over-burning-the-bondholders-2880148.html

The fact of the matter is, our "European partners" call the shots, not Noonan. However, I wouldn't let Noonan off the hook completely because he knew the ECB had always resisted measures to burn senior bondholders.

"The ECB has made its position very clear and as volatility and tensions continue to escalate in the euro zone, any sudden shift in policy with respect to Anglo carries risk that the market perceives it as a fundamental change in general ECB policy," Dublin-based Glas Securities said in a note.

...

By eying up Anglo's unsecured senior debt, the government's move deflects attention away from its failure to secure a cut in the near 6 percent rate of interest Europe is charging on its emergency loans and an ongoing dispute with France over Ireland's iconic corporate tax rate.

http://uk.reuters.com/article/2011/06/16/uk-ireland-seniordebt-idUKTRE75F5EK20110616


I think for once a Fianna Fail spokesman made a fair point.

Michael McGrath said the Minister’s announcement was “more about getting good headlines on the Government’s 100th day than making any real progress on the issue”.

http://www.irishtimes.com/newspaper/frontpage/2011/0617/1224299071814.html