See Search Box
lower down this column for searches of Finfacts news pages. Where there may be
the odd special character missing from an older page, it's a problem that
developed when Interactive Tools upgraded to a new content management system.
Welcome
Finfacts is Ireland's leading business information site and
you are in its business news section.
We
provide access to live business television and business
related videos from: Bloomberg TV; The Wall Street Journal;
CNBC and the Financial Times. Click image:
Markets News Afternoon: Wednesday is first anniversary of Irish State banking guarantee; Secret €4bn IL&P loan to Anglo Irish Bank
By Finfacts Team
Sep 29, 2009 - 5:06:13 PM
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The €4 billion was withdrawn by IL&P a week to 10 days later - - similar to the director's loans transaction between Anglo Irish's chairman Seán FitzPatrick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.
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.
Lenders would prepay FDIC premiums for the fourth quarter and next three years on Dec. 30th, to replenish the deposit insurance funds that staff estimated will have a negative balance at the end of this quarter, the agency said.
The agency raised its estimate for the cost of bank failures to $100 billion through 2013, from $70 billion, and said about half the expenses will be incurred by the end of this quarter.
The FDIC's proposal seeks to raise $45bn for the deposit insurance fund, with CNBC's Mary Thompson:
US markets
The US Conference Board Consumer Confidence Index, which had improved in August, posted a surprise dip in September. The Index now stands at 53.1 (1985=100), down from 54.5 in August. The Present Situation Index decreased to 22.7 from 25.4. The Expectations Index declined to 73.3 from 73.8 last month.
US S&P/Case-Shiller Home Price Indices: Data through July 2009, released today show that, although still negative, the annual rate of decline of the 10-City and 20-City Composites improved compared to last month’s outcomes. This marks approximately six months of improved results in these statistics, beginning in early 2009. Prices in the 12 -months to July are down -31.4% in Las Vegas; -28.5% in Phoenix and -24.6% in Detroit.
Tommy Williams, of Williams Financial Advisors, and Dan Fitzpatrick, of Stock Market Mentor, share their expectations for October and the rest of the fourth quarter.
In Europe, the Dow Jones Stoxx 600 rose 0.17%.
The top markets - - London, Frankfurt and Paris - - fell.
On the New York Mercantile Exchange, oil for November delivery is trading at $66.441 down 65 cents from Monday's close. In London, Brent crude for November delivery is trading at $65.11 a barrel.
Currencies
The euro is trading at $1.4548 and at £0.9139.
For live currency updates, check the right-hand column of the Finfacts home page.The dollar traded at a record low $1.6038 per euro on July 15, 2008.