March 30, 2011

Permo - Article from Nov 2008 identifies its funding model as a "shambles". No surprises today.

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This article I wrote in November 2008 identifies it’s funding model as a “shambles”.

Every evening, there is a little ritual in our house. Our young children, having been settled by their mother, demand dad tells them a story ‘‘from your head’’ before bed. This lark involves all classes of adventures, heroes and implausible tales starring themselves as central characters.

There are usually myriad frequently unpleasant baddies who are vanquished by our brave and incorruptible champions.

This nightly Jackanory session ends with the younger child mumbling while fighting back the tiredness: ‘‘But that’s all not true in real life, is it dad?” The older one, just eight, interrupts: ‘‘Of course it’s not true, dad makes it all up.” Sadly, by next year, they’ll both be too old for these stories. Children grow up and they stop swallowing their dad’s made-up yarns. Someone should tell the Irish banks the same applies to the rest of us. There are only so many made-up yarns we can take.

This week, two of our main banks — Bank of Ireland (BoI) and Irish Life & Permanent (ILP) — tried to spin stories to the world, yarns a dad wouldn’t tell to a six-year-old.

Read the rest…


  1. adamabyss

    Someone make that link live, more people might click on it.

  2. adamabyss

    Bang on the money that one from 2008 was.

  3. Colin

    No Surprises is right, except for maybe Lenny who told us many times that we’d turned the corner.

  4. Gege Le Beau

    Financial tsunami is about to make land
    http://www.bbc.co.uk/blogs/thereporters/robertpeston/2011/03/the_unbelievable_truth_about_i.html

    Not a banker has been jailed.

  5. Tim

    Folks, Here’s one to watch (especially tomorrow), from Lorcan:

    http://blog.cornerturned.com/2011/03/30/bailouts-last-stand/

    The state shout not nationalise any more financial institutions; in fact, Elderfield should just revoke the banking licenses on the grounds of insolvency. No-longer a bank? No bank-guarantee applies.

    But, that’s just me…..

    Let’s keep at it.

    • Deco

      “The final, final cost”.

      I suppose this means that somebody in authority will come along afterwards (like on previous occassions) and say “we have an upper limit on the level of exposure in the Irish banking system” (to be paid for by the Irish taxpayer).

      And where is Bertie “the boom is getting boomier” Ahern these days ? Maybe he is searching the trees of North Dublin to see if he can find one that grows money….

  6. Tim

    Erm, “should not”, of course. Sorry.

  7. Deco

    It is now going “systemic”.

    http://www.breakingnews.ie/business/stock-exchange-suspends-trading-in-irish-banks-499293.html

    Permo left it until it was no longer possible to deny that it was in trouble, before admitting it was in trouble.

    Nothing unusual there. This is standard procedure for dealing with this sort of problem in Irish banking.

    The directors are merely trying to keep the jolly going for as long as possible, for the benefit of their own financial predicament.

    A way around this would be to have a time delay on bank directors fees/salaries/bonuses/share windfalls.

    If Permo is this bad, who knows what is going on in the Ballsbridge Bankcentre…..

    • Colin

      Let’s rename the country the “Republic of Mushrooms”, since we’re kept in the dark and fed a load of sh1t from the insiders.

  8. Save the People

    The Pat Kenny show this morning was discussing a letter in the Irish Times refering to debt forgiveness for mortgage holders. Kenny thought this was an astonishing proposal. However we at National Crisis, Save the People!! have suggested this 5 months ago. This formed part of our alternative budget proposals. The proposal is as follows:

    “HOUSEHOLD MORTGAGE ACCOUNTS

    Possible figure -€75 billion, Government takes responsibility for 50% of total figure.

    Term for same, 20 — 30 years or some other term at negotiated rate of interest.

    EFFECTS

    (A) Property valuation would be adjusted by 50%. This would correct inflated property prices and assist the movement of properties. It would also assist first time buyers.

    (B) Borrowers would be assisted in the payment of their mortgage as the repayment would be realistic and property reflects the correct valuation.

    (C) Negative equity would be removed from the market.

    (D) Mortgage holders would most likely have more disposable income, this could boost the economy, increase tax intake and boost jobs.

    (E) Lenders repayments more secure and defaulters massively reduced.”

    We sent this proposal to numerous senior politicians but it fell on deaf ears. So what do you guys think of this proposal?

    P.S. You can find the rest of our proposals at:

    http://www.facebook.com/home.php#!/home.php?sk=group_171619486188406&ap=1

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