The good old days!!

Wednesday is the first anniversary of the State guarantee of all the debts and deposits of Irish banks and building societies.

A year ago today, the builders bank Anglo Irish Bank was hit by a withdrawal of deposits and a panicked Taoiseach and Minister for Finance agreed to underwrite the Irish banking system, covering both deposits and bonds worth €440 billion.

Anglo Irish had already received  several billion euros worth of short-term secret loans during September 2008 from Irish Life & Permanent and within hours of the agreement on the State guarantee,  IL&P gave a loan of €4 billion to Anglo - - which helped the latter to massage its accounting figures, on the last day of its financial year.

The €4 billion was withdrawn by IL&P a week to 10 days later - -  similar to the director's loans transaction between Anglo Irish's chairman Seán FitzPatrick

Irish Nationwide provided loans of up to €122 million to FitzPatrick over an eight-year period, enabling him to move his loans at Anglo Irish off the bank’s books before Sept 30th each year, to avoid disclosing them publicly.

Following the collapse of the US investment bank Lehman Brothers, Irish institutions, which had become reliant on the wholesale inter-bank market as the property bubble accelerated, were unable to raise funds while  large depositors had begun withdrawing their money.

In an interview with RTÉ News today, Minister for Finance Brian Lenihan said that throughout the month the Irish authorities had been urged by European Central Bank president Jean-Claude Trichet to take steps to prevent the collapse of an Irish bank - - it's doubtful that Trichet presented the issue in those terms.

Lenihan said the Government had also considered nationalising a number of institutions along with a blanket guarantee, but that this was ruled out during a night of emergency meetings in Government Buildings.

Lenihan said it was important that the Government begin to work on exiting from the guarantee but that this depended on market conditions.

He said the Government may have to keep the guarantee alive for medium-term bonds issued by the Irish banks.

The current guarantee expires in Sept 2010.

SEE: Sept 16, 2009 Finfacts report: IMF says governments need a plan to dispose of the crisis assets; Ireland/Denmark unique in guaranteeing existing bank debt

40 new funds' jobs for Dublin

While thousands are losing their jobs each month in Ireland, new jobs remain a staple for ministerial public relations.  

Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan TD today announced that Butterfield Fulcrum, a top five independent alternative fund administration company by assets under administration, is to create 40 new jobs over three years at its Dublin office on Lower Leeson Street. A number of "key positions" have already been recruited. The Government through IDA Ireland worked closely with the company to attract this investment to Ireland.

The Dublin office will provide administration services to collective investment schemes either domiciled in Ireland or Offshore, including valuation services, fund accounting services, transfer agency and share registry.

Making the announcement the Tánaiste said “These developments at Butterfield Fulcrum are continuing evidence that Ireland’s global reputation as a leading location worldwide for international financial services continues to attract high calibre companies who are developing their international business. Ireland's unique competitive advantages, which include a flexible and highly qualified workforce, a knowledge-based economy and pro-business government policy, maintain this country’s attractiveness for foreign direct investment from all sectors, including international financial services.” 

Interview and discussion with William Walsh, CEO of British Airways. He talks about his new strategy to attack the market:

US banks

Bloomberg reports the Federal Deposit Insurance Corp., (FDIC) seeking to replenish deposit reserves as banks fail at the fastest pace in 17 years, today voted unanimously to have lenders prepay fees through 2012, raising about $45 billion.