Irish Finance Minister Noonan Proposes Bail In Policy

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Noonan's gesture to depositors

Noonan’s gesture to depositors

Under the presidency of the EU, the Irish finance minister Michael Noonan(2012 Bilderberg attendee) has proposed making the Cyprus theft “bail in” using deposits over €100k policy for future bank collapses. The BIS sets the banking agenda and they want depositors raped when banks collapse along with using “bail ins” to pay for bankers remuneration (big bonuses) according to a recent paper. Judging by the state of European banks, a lot of people are going to have their wealth wiped out and everyone will be at the same wealth level in the Orwellian EUSSR.

Deposits of over €100,000 are likely to be hit in the event of future European bank collapses, according to a proposal put forward by the Irish presidency of the European Council ahead of a key meeting of finance ministers next week.

Discussions on the controversial bank resolution regime, which is likely to see savers with deposits over €100,000 “bailed in” as part of future bank wind-downs, are due to intensify this week in Brussels, ahead of Tuesday’s meeting, which will be chaired by Minister for Finance, Michael Noonan.

“We will try to get some guidance from Ministers about the possible design of the bailout tool,” one EU official said yesterday.

Under a compromise text proposed by the Irish presidency, uninsured deposits of over €100,000 would be bailed in in the event that a bank is resolved, but depositors would rank higher than other creditors in the event of a wind-down.

In this scenario – known as “deposit preference” – depositors would rank at the very end of the process, with other creditors first absorbing losses.

However, some member states have not ruled out the possibility that insured deposits, i.e. deposits under €100,000, would be forced to bear losses in the event of a bank collapse even though these deposits would be likely to be protected by the deposit guarantee scheme.

However, the explicit exclusion of insured deposits from future “bail-ins” could in fact be included in the final text, according to some sources, with some MEPs in particular keen to include such a provision.

Significant differences still remain between states on the issue, with some countries calling for greater flexibility as regards the application of the new rules on a national basis, including the possibility that individual countries could be permitted to exempt large depositors from losses if a bank fails.

The introduction of an EU-wide bank resolution process, which would govern how banks are wound down, is a key strand of the EU’s plan for a pan-European banking union, which was endorsed by EU leaders at last June’s summit.

However, the chaotic Cyprus bailout instilled the issue with greater urgency, with EU lawmakers now keen to provide clarity around bank collapses.

Moving the burden
This year Jeroen Dijsselbloem, head of the group of 17 euro zone finance ministers, said that losses on bondholders and depositors could form part of future bank bailouts as euro zone officials seek to move the burden of bailouts away from taxpayers – as was the case in the Irish bailout – and on to private investors.

The European Commission argues that this switch from so-called “bailouts” to “bail-ins” would result in an allocation of losses that would not be worse than the losses that shareholders and creditors would have suffered in regular insolvency proceedings that apply to other private companies.

While the inclusion of large savers in future bank bailouts is now widely accepted, significant differences still remain between member states.

While the new rules governing bank resolution were first intended to come into place in 2018, since the Cypriot bailout there have been calls from senior EU figures such as European Central Bank president Mario Draghi and EU economics affairs commissioner Olli Rehn to introduce the new regime as early as 2015.

The Irish presidency of the European Council is hoping to reach a common position by the end of next month.

Noonan demonstrate how much you will be left with under the EU plan

Noonan demonstrates how much the EU/Banks intend you will be left with under the plan

 

 

 

 

Source: Irish Times, BIS

Ireland: Taking €5bn From The People To Give to The Banks

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ireland toxicbankLater on today Ireland will deliver its 2013 Budget. The Minister for Finance, Michael Noonan will stand up in front of the Dail  and outline how it will take €3.5bn in new taxes and cuts and at the same time will deliver €5bn to the banks. That €5bn (including interest of €1.9bn) is for  paying Anglo Irish Bank’s debts. That same bank, while it primarily only lent to developers and wasn’t important to the Irish economy, was wrapped up years ago and doesn’t exist anymore. Yet, two successive Irish governments have insisted the Irish taxpayers still pay back the banks debts.

On top of that, this Irish Government has insisted that the Irish taxpayer pays €1.1bn into the big fat pension fund of the banks in AIB. This bank went bankrupt and had to be fully taken over by the state but the Government wanted to do the right thing and look after them.

So to sum it up, the Irish taxpayer cuts shafted in the budget to the tune of €3.5bn and the Government hands over €5bn to its banker buddies that doesn’t need to be. Now thats what I called “Dumb-ocracy”.

Stephen Donnelly (T.D.) put it a little better than I could.

You could do a lot with €3.5bn – like doubling the number of teachers in our schools, or building seven state-of-the-art hospitals. You could reduce income tax by one-quarter, or bring corporation tax down. If you were feeling all Fianna Fail, you could just give €2,500 to every household in the country.

But that’s not what the Government is going to do with its €3.5bn.

They are going to take it out of your pocket and give it to Irish Bank Resolution Corporation Limited, IBRC. That’s the company created to wind down the assets and liabilities of the former Anglo Irish Bank and Irish Nationwide Building Society, INBS. The €3.5bn coming in Wednesday’s Budget 2013 will go some way to the total of €5bn that they are due to give IBRC in 2013.

It is true that the headline figure looked at by the troika will fall by about €800m. But due to some accounting wizardry, a full €3.1bn of the €5bn to be paid to IBRC isn’t included. When you add that in, the deficit will in fact grow, by a whopping €2.3bn.

So on Thursday morning, when you’re poring over the papers trying to calculate how much less money you will have next year, remember this – whatever the amount, every single cent of it will be poured into the former Anglo and Irish Nationwide, to cover their losses.

How on God’s earth could this be? Here’s a quick reminder of what happened. Over the course of 2010, the Fianna Fail Government invented a loan from the people of Ireland to Anglo and INBS. They essentially wrote a €31bn IOU, promising to pay it to the bank and building society over the following 20 years. In 2013, we are due to make our third payment on this, of €3.1bn.

But it gets worse. Now that we ‘owe’ them this €31bn, we must also pay them interest. This amounts to an additional €17bn over the 20 years. In 2013, the interest payment is €1.9bn. So contained in the 2013 forecasts is a payment of €5bn to Anglo and Irish Nationwide – two dead casinos, both under investigation on numerous fronts.

We may, in time, get some of this money back. And the Government is in negotiations with the ECB on the promissory notes. It hopes to lower the payments, possibly by spreading them out over a longer period of time. We don’t know how this will pan out. We do know, however, that Budget 2013, and the €3.5bn ‘fiscal consolidation’ coming our way, assumes the full €5bn will be paid.

This is madness. It is immoral. It is economic lunacy, and it should not be paid. I don’t say this lightly. Not paying has consequences. The ECB would likely stamp its feet loudly. The troika would undoubtedly grumble. They may take actions to hurt us. So be it. There comes a point where you have to say ‘stop’. Surely we have reached that point in Ireland.

One in 10 children is now living in food poverty. Unemployment is high and static – it is more than one in three for those under 25. One in eight mortgages is in arrears. Our universities are being decimated. Two-thirds of adults now have less than €100 left at the end of each month after bills are paid. Surely, at this point, political leaders are meant to say, ‘We are simply not prepared to take €5bn from these same people to give to these failed banks’.

If you take this step, recovery seems possible. And there’s more. To the €5bn, let’s add the €1.1bn that AIB used to top up its pension fund. This €1.1bn is our money, after all. And according to the Taoiseach, it’s being used to ensure that the 2,500 planned redundancies at the bank can be voluntary.

Why? It’s a failed bank. And in failed companies, people lose their jobs. Harsh, but do you see the Government topping up the pension funds of other companies with your money? A small tax on financial transactions, mooted by many, including the European Commission, Labour MEP Nessa Childers and economist Paul Krugman, could raise €750m in Ireland. So between the promissory notes, AIB’s pension top-up and a Financial Transaction Tax, that’s over €6.8bn from the banks.

And there are other options for raising revenue. Tax exemptions amount to over €11bn in Ireland. Excluding just one-10th of this would raise a further €1.1bn. A tax on high-sugar, high-fat foods, while not to everyone’s taste, could raise nearly €200m.

On the expenditure side, there are numerous options for saving money that do not lead to worse public services. In some cases, they will lead to an improvement.

The Comprehensive Expenditure Review identifies over €1.4bn in spending reductions for 2013. Just three of these measures would cut waste by over €600m. These are the better use of procurement (€150m), increases in charges for private beds in public hospitals (€270m) and better use of generic drugs (€220m). It also seems reasonable not to pay out the €170m in public sector pay increments planned for 2013.

These measures amount to about €9bn. That’s with no cuts to child benefit, no household charge, no water charge, no reduction in the capital budget (for roads, schools, etc), no reduction in social welfare or income tax rates, no cuts in public sector pay.

The various pre-Budget submissions by opposition parties and civil society groups like Tasc and Social Justice Ireland contain a number of relatively low-cost ways of raising money and cutting spending. Measures like better tax enforcement and raising DIRT, capital gains and the excise on tobacco.

There are opportunities on income tax, the capital budget and high-end public service pay, and a raft of other efficiency measures throughout the public service. Between all of these, there could be another €1bn to 1.5bn. But let’s leave all of them out, for the sake of simplicity. Let’s just stick to our €9bn. Using €3.5bn of this to hit our troika target next year still leaves us with €5.5bn to invest.

Where would you like to start? Increase the microfinance fund from €90m to €1bn. Build a network of innovation centres for entrepreneurs. Get the next generation of broadband into the cities and ensure companies get all of it they need, affordably. Invest €1bn in our universities, reversing the decline in rankings and standards.

Get the career guidance counsellors back into our secondary schools and reduce teacher-pupil ratios. Increase support hours for students with learning difficulties and reverse the cuts to the Deis schools. Build the primary care centres. Reverse the cuts to home-help hours. Start hiring teachers, nurses and gardai again. In short – stimulate job creation, brush down the education system, support at-risk groups and reduce inequality.

We could even use some of the €5.5bn to accelerate the closing of the deficit, bringing us closer to financial independence and possibly alleviating some of the political fallout from not paying IBRC.

The difference between what I’ve outlined here and what’s coming on Wednesday is just one thing – the banks. Leadership during crisis involves tough choices.

Right now, here they are: do we tax and cut to continue paying the debts of Anglo and Irish Nationwide, for fear of the ECB? Do we pour public money into bankers’ pension funds for fear of compulsory redundancy? Do we shy away from a sensible tax on financial transactions for fear our bankers will flee to London? Or do we make a stand and begin to do things differently?

For four years now, two subsequent Irish Governments have consistently put the interests of banks and bankers ahead of the interests of the Irish people. This is down to a combination of incompetence, political cowardice and legitimate fear.

Spanish philosopher George Santayana famously said that those who cannot remember the past are condemned to repeat it.

On Ireland’s predicament, history is unambiguous – an austerity-only approach to this crisis has not worked. It isn’t working now. It won’t work in the future.

Sadly, I expect Wednesday’s Budget will show that the Government hasn’t yet learned the lessons of economic history. Only by taking a stand against the banks, and against the orthodoxy of the ECB, can we disentangle ourselves from the mistakes of the past and set ourselves on a path to recovery.

Source: Stephen Donnelly, Irish Independent

Irish Finance Minister Michael Noonan A Laughing Stock

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Would you trust this head to run your country’s finances ?

Its hard not to laugh when the Irish Minster for Finance (Michael Noonan) turns around over the weekend and says

“I’m powerless to tackle bankers’ pay and perks”

especially when you consider the state owns one of the pillar banks and has a stake in the other. This man has a history of lying to the Irish people, as he backtracked on every promise he made before the election.

The Sunday Independent has also learned that 15 of the most senior figures in Anglo Irish Bank from the time of the September 2008 crash are still employed at the institution, on salaries believed to be in excess of €150,000.

…..

Colm Doherty, who was paid €3m for less than 11 months’ work, will receive an annual pension of €300,000 when he turns 65, again paid for with taxpayers’ money. Despite the outcry over what he called the “controversial pensions” paid to Mr Sheehy and the €866,000 salary package paid to Irish Bank Resolution Corporation (formerly Anglo) boss Mike Aynsley last year, Mr Noonan is unable to tackle them because of contractual obligations.

…..

it was also revealed that the former Anglo Irish Bank, which has received more than €34bn of taxpayers’ money to date, is the only defined benefit pension scheme in the country which is fully funded.

You can’t blame Max Keiser and Stacey Herbert for having a laugh at the minister, but as usual, there is no reaction from the sheeple. Get your vaseline ready for the budget 😉

Just change the damn law Noonan, bring in a new 100% tax rate for employees of banks earning over 100k, DO SOMETHING !!! HELLO !!!!

Source: Irish Independent

Irish Finance Minister Answers Questions On Bilderberg Meeting

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“Nothing to see here Guv, move along”. That was pretty much Michael Noonan’s response when asked what the hell was he doing at a Bilderberg meeting at the start of the month. The questions were put to the Finance Minister in a Dail (Irish Parliment) session. His response can be found on the Dail website from 12 June 2012.

I attended the Bilderberg meeting in Westfield Marriot, Chantilly, Virginia, USA, from 1 to 3 June 2012. I, like a number of my European colleagues (both Ministers and EU Commissioners), was invited to attend given my position as Minister for Finance. I travelled alone and the total cost associated with my travel and accommodation came to €4,358.33. For further information, I would point Deputies to the Bilderberg Meetings website (www.bilderbergmeetings.org), which includes information on the organisation’s governance, steering committee, meetings and associated press releases. At this meeting and its workshops I took the opportunity to set out to my fellow attendees the opportunities that exist in Ireland for investors and multinational companies. I also outlined the significant progress Ireland is making in restoring stability and growth to the economy.

The Government is focussed on encouraging as much investment as possible into Ireland and over recent months we have seen the strong level of inward investment in our economy and have seen the announcement of over 1,000 jobs per month from Foreign Direct Investment so far this year. I would point out to Deputies that a number of the business attendees represent companies which have very significant investments in Ireland that support thousands of Irish jobs.

The Bilderberg (steering committee for the worlds ruling elites), I’m sure would have no interest in a sarcastic fat Irish ex school teacher giving them an update on the economy. I could give them that update (we’re fucked) ;-). Sorry Michael, but you do have a track record for bending the truth. He joins a long list of people from his own party Fine Gael who have attended meetings including Peter Sutherland, Dermot Gleeson, Paul Gallagher, Garett Fitzgerald and Michael McDowell (yes originally in the Fine Gael party).

Go on Michael, what were you really there for ???? Why is there no transparency?

In an attempt to play down the conspiracy theories around Bilderberg, in Ireland the Irish Times newspaper wrote a small article explaining that Michael Noonan simply attended a 3 day conference. Quite significant was the fact that up until this point, the MSM in Ireland had appeared to have a blanket ban on discussing all things Bilderberg.

For further background, listen to following clip from BBC including how they created all major european institutions.

Source: OireachtasDebates, Irish Times, Wikipedia, UCD

Ireland’s Minister for Finance Michael Noonan a Hypocrite

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You may argue that he lied but at best he is simply a hypocrite. Ireland’s Minister for Finance, Michael Noonan has appeared to do a complete u-turn since arriving into office. Check out the speech below on 15 December 2010 which he gave while in opposition and compare with his record since becoming Minister for Finance.

Clips from the speech.

the Government failed to negotiate a burden sharing arrangement for non-guaranteed bank debt as part of the bailout arrangement.

You haven’t either Minister since you got into power. In fact you point-blank refused to.

Ireland’s commitments on sovereign debt and debt under guarantee must be honoured in full. What legal or moral compulsion is on Ireland, however, to honour in full debt incurred by Irish banks when there was no State involvement in the arrangements? 

……..

It is obscene that liability for these loans is now being transferred to the Irish taxpayer, in many respects to the poorest of the Irish taxpayers.

Since becoming Minister of Finance he says “we always pay our debts” and has willing accepted these debts.

There is €10 billion of subordinated debt in the Irish banks. There is €15 billion of NON guaranteed senior debt. The Irish Government and the Irish taxpayer has NO liability whatsoever for these debts.

Yet Minister Noonan insists on paying them.

In the budget the Minister for Finance reduced social welfare payments, punished the [326]blind, disabled, widows, carers and the unemployed and he taxed the poorest at work, and for what? It was so that the taxpayer can take on liability for debts the country never incurred and arose from private arrangements between private institutions. What a disaster and an obscenity. How can the Government stand over it? How can our European colleagues stand over it?

And you cut payments under Social Welfare too Minister. What about Child benefit, fuel allowance, job seeker’s benefit, household charge, back to school allowances, school transport, college fees registration, one parent family etc, all reduced by YOU.

When the deal was agreed, there was an attempt to justify it because any re-negotiation of bank debt in Ireland could have a major adverse effect on banks in Germany, France and the UK that lent to Irish banks. This consideration may have been valid some time ago but it is no longer valid.

Again you back tracked on this too.

The latest available bank data shows that Irish guaranteed bank debt has been sold on at a discount to hedge funds in the USA, the UK and Luxembourg, as well as to smaller speculative investors. If the Minister of State is interested in the data, he will find it through Clearstream and Euroclear. He can track the sale of bonds at discounts. They are no longer being held by European banks that lent the money in the first instance.

Yes, and when you became Minister you had the opportunity to buy the discounted bonds and save the country money but you didn’t. In fact because they were subordinated, you could have told the bondholders to fuck off but you didn’t. You paid in full.


Check out the next clip from Stephen Donnelly, criticizing Minister Michael Noonan.

Is Michael Noonan (Irish Minister for Finance) a man you can trust or is he in the pocket of the banks ?

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