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Thursday Newspaper Review - Irish Business News and International Stories - - June 27, 2013
By Finfacts Team
Jun 27, 2013 - 7:23 AM
ANGLO boss David Drumm's strategy was to go down to the Central
Bank "with our arms swinging" to demand a cash injection for his sinking bank.
He explained his strategy about dealing with the Central Bank to senior
colleague John Bowe: "Get into the f**king simple speak: 'We need the moolah,
you have it, so you're going to give it to us and when would that be? We'll
In the latest Anglo Tapes, Mr Drumm is heard saying he would be threatening
regulators unless they wrote him a cheque.
"We'll be going down there with our arms swinging. I'm very clear on the
proposal," he told Mr Bowe.
He is also heard threatening to shut Anglo Irish and "hand the keys" to the
State if he did not get a fresh influx of capital from the taxpayer.
"I'm going to keep asking the thick question: 'When, when is the cheque
German people are disgusted and offended at comments by Anglo
executives as revealed by the Irish Independent, according to a leading
Michael Fuchs, deputy parliamentary leader of the Christian Democratic Union –
the party of Chancellor Angela Merkel – said the recordings were “unbearable”.
In a set of phone calls detailed by the Irish Independent, executives at the
toxic Anglo Irish Bank laugh about abusing a blanket bank guarantee to beef up
the books at the expense of Germany and the UK.
One conversation - taped two days after the fateful September 30, 2008 bank
guarantee - hears former chief executive David Drumm giggle while his colleague
John Bowe recites lines from ‘Deutschland Uber Alles’.
THE Coalition will decide next week how the banking inquiry will
be conducted as public outrage mounts over the revelations contained in the
Irish Independent's Anglo tapes.
The Government's legal adviser is examining the various investigation options
available and the strengths and weaknesses in each case, including a re-run of
the defeated Oireachtas inquiries referendum.
Taoiseach Enda Kenny left the door open to holding another referendum to give
the Oireachtas new powers for a banking inquiry.
EUROPEAN Central Bank chief Mario Draghi urged governments to
ease off on tax increases to boost people's disposable income.
Mr Draghi stressed fiscal consolidation measures should be as growth-friendly as
possible, with focus placed on cutting capital spending.
The ECB chief told the French National Assembly that there are limits to what
monetary policy can achieve.
"For all euro area countries, a new approach is needed," Mr Draghi said.
The cost of in-patent and generic drugs in Ireland remains high
in international terms despite measures by Government to tackle the problem,
according to a new study.
Ireland had the highest prices for nine out of 13 commonly used generic
medicines compared to other European countries, the study by the Economic and
Social Research Institute (ESRI) found.
For in-patent drugs, Ireland was among the three most expensive European
countries surveyed for 10 leading products.
The actual price differences faced by consumers are probably higher as the study
examined ex-factory prices in 2013 rather than the retail price charged to
customers in pharmacies.
Via Financial Times:
Even Jonathan Swift, creator of Gulliver’s Travels and Ireland’s most famous
satirist, would surely have hesitated before writing this scene. It is September
2008 and Ireland’s hapless government, faced with an unprecedented flight of
capital from the country’s banking system and acting on the facts given to it,
has decided to guarantee the obligations of all Irish banks.
For some of the senior executives in high-flying
Anglo Irish Bank the guarantee is a cause for hilarity.
Banks will not be able to force distressed borrowers off tracker
mortgages unless they engage in meaningful write downs. or provide alternative
arrangements of real benefit to those in arrears, under a new code of conduct.
The code, published this morning, will not allow the State’s lenders to
fast-track home repossessions, the Central Bank has said.
Critics of the new code have accused the regulator of “rolling over” under
pressure from the State’s banks but the Central Bank insisted last night that
its new proposals would allow borrowers and lenders to reach more sustainable
The European Union agreed today to force investors and wealthy
savers to share the costs of future bank failures, moving closer to drawing a
line under years of taxpayer-funded bailouts that have prompted public outrage.
After seven hours of late-night talks, finance ministers from the 27 member
states emerged with a blueprint to close or salvage banks in trouble. The plan
stipulates that shareholders, bondholders and depositors with more than €100,000
should share the burden of saving a bank.
The deal is a boost for EU leaders, who meet later today in Brussels, and can
show that they are finally getting to grips with the financial crisis that began
in mid-2007 with the near collapse of Germany’s IKB.
There has been an almost 20% decline in the number
of business going bust in the first six months of this year compared to the same
period last year.
Figures from the company information service
Vision- net show that there have been 812 companies declared insolvent this year
down 17% on the first six months of last year.
According to their latest filed accounts, 537 of the companies who have gone
bust owe their short-term creditors €155m.
The courts have also awarded creditors €189m in corporate and consumer
judgements for unpaid debts between January and May. The banks are the biggest
creditors accounting for 43% of all judgments awarded.
Despite the decline in company failures there were still five companies failing
everyday on average for the first six months of the year.
Former Dublin Docklands Development Authority
chairman Lar Bradshaw has said that the taxpayer did not lose any money in the
controversial purchase of the Irish Glass Bottle site in Ringsend seven years
ago, but has expressed regret that the authority went through with the deal.
Addressing the Public Accounts Committee yesterday,
Mr Bradshaw — who was also a non-executive director of Anglo Irish Bank, one of
the main lenders for the purchase — said he had no conflict of interest and
nothing to gain on a personal level from the transaction.
He said that, “contrary to popular belief”, neither the State nor the taxpayer
lost any money from the deal, but added that the State could have made
“considerably” more money than its reported €85m net profit.
Presseurop: The recent online surveillance
scandal involving US intelligence agencies has renewed calls for an urgent
reform of European legislation on personal data, which has already been under
discussion for years. The proposed reform, though, has consumer associations
pitted against the lobbies of the Internet giants.
Camille Gévaudan of French daily Libération
writes: Rarely has a proposed reform unleashed such a vast torrent of
On one side, NGOs and online activists have launched a campaign asking citizens
to bombard their MEPs’ inboxes with nude photographs of themselves, in
opposition to big corporations’ assault on personal data.
Opposing them are the most powerful web industries, whining for more
“flexibility” when it comes to shuffling the private data of millions of
And in the middle stand archivists and genealogists, waving their little flag
out of fear that the “right to be forgotten” would endanger the collective
How do Croatians view their country’s
accession to the European Union? In a bid to evaluate perceptions of the impact
of EU membership,
local newspaper Novi List spoke to the residents of Rijeka, Croatia’s third
There is no point in whining about this, at least
not according to saleswoman Mirjana Šafar: “Personally, I expect things to
improve. I am an optimist by nature, and that is how I look on this change.
Hopefully, it will make things easier for young people, and offer them more
opportunities to work and study etc. And of course, cross-border travel will be
easier – there will be no more customs checkpoints on the road to Trieste. With
regard to regional products, some people are worried they won’t be able to sell
them anymore. But I think we should not fret about this. Other countries are
still able to sell their cheese and cream.”
Euro Topics: According to a report in The
Guardian, the UK has been tapping into data traffic between Europe and the US
under a large-scale surveillance programme codenamed Tempora. This is completely
unconstitutional, the liberal Dutch daily NRC Handelsblad complains:
"Except in times of war no country has the right to unrestrictedly and secretly
listen into the conversations of the citizens of another country, open their
mail or scrutinise their Internet behaviour. Within the EU such a thing is all
the more shocking. It increases the doubts about London's attitude to Europe.
Clearly the United Kingdom has no scruples when it comes to the basic rights of
its fellow Europeans. ... Systems like Prism and Tempora may only be used when a
democratic foundation exists for them and they respect legal frameworks.
Eliminating civil rights for the sake of protecting them is not a sound strategy
- even in the 'war on terror'."
Sidestepping a working majority in the Chamber of Deputies, Czech president
Miloš Zeman on Tuesday entrusted his economic adviser Jiří Rusnok with putting
together a cabinet of experts. The conservative Czech daily Lidové noviny
calls on the parliament to challenge the president's course: "The whole
thing smacks of a coup, not in the constitutional sense, but certainly in the
political sense. The president appoints a prime minister without the support of
parliament and in the end against the will of a majority of deputies. The way
the president is enforcing his will is inexcusably scandalous. ... Zeman could
be stopped if the deputies could agree on early elections. It is their absolute
duty to restore order in parliament."
Fears of a financial crisis in China caused Asian stock markets to dip on
Tuesday. China's central bank has announced that it has already put funds at the
disposal of banks suffering financial difficulties. The intervention of the
central bank has calmed the markets, but behind the fears looms a crisis that
will also have a negative impact on Europe and the US, the left-liberal Italian
daily La Repubblica fears: "An intervention on the part of the central bank
is calming for investors, but at the same time it's also a confession. China's
banks need money. This indicates that China isn't going through a financial but
an economic crisis. ... Europe and the US are now seeing for themselves that
after flying high, China could be in for a bumpier landing than had been
expected. And above all in the medium term, Beijing will no longer be the
locomotive that drags the other countries out of the bottleneck of their
A debate has been raging in France since Tuesday over the footage filmed by
surveillance cameras of part of the confrontation between the left-wing activist
Clément Méric and several skinheads at the beginning of June. The 18-year-old
died of severe head injuries after the fight. Right-wing terror must not be
played down, the left-liberal French daily Libération writes: "We could go
on feeding this pointless controversy by asking: who started the fight?. ... But
we won't. Because that's not the main issue here. We know that like many people
in the anti-fascist movement, Clément Méric could not entirely avoid the
temptation to provoke, and sometimes - perhaps - to use violence. But we must
stop there, and not give in to all those who would have us believe that you can
lump together the extreme right and the extreme left. We can only commend those
young people who are determined to reject the revolting ideas of
anti-republican, fascist groups that make hatred their stock in trade."
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