A NUMBER of key figures at the centre of the banking scandal have been advised by lawyers to "sit tight" because the State will find it extremely difficult to prove deliberate wrongdoing.
The Irish Independent has learned that some bankers have been advised that the State will face an uphill task in convincing a court there was intent to commit a crime.
Ireland has a weak record on the prosecution of white-collar crimes and complex fraud actions, owing to the high proof thresholds required in the prosecution of such cases.
The key figures have also been advised that prosecution will be made even more difficult if it can be shown that regulatory authorities knew about or supported certain transactions.
There has never been a successful prosecution for insider trading in Ireland and the Markets Abuse Directive, an EU-wide law that regulates insider trading and market manipulation, has never been tested in an Irish court.
Earlier this year the Office of the Director of Corporate Enforcement (ODCE) told the High Court that it could take another two years for prosecutions, if any, to flow from its inquiries into Anglo Irish Bank.
The ODCE has not secured one conviction in its near 10-year history, during which not one white-collar criminal has bee sent to jail.
A garda file on the Anglo Irish Bank/Irish Life & Permanent deposit exchange, the Anglo 10 share-support scheme and the issue of directors' loans has yet to be completed and may not be handed over to the Office of the Director of Public Prosecutions until early next year.
The revelation came as former regulator Patrick Neary refused to comment on claims by former Anglo Irish chief executive David Drumm that he and the Central Bank were aware at all times of key decisions at the bank.
Mr Drumm, who has not been accused of any crime, has filed for bankruptcy in the US over €8m in loans that he cannot repay Anglo. He alleged at the weekend that everything was done with the knowledge of the authorities.
"Every step we took was hand in hand with our own (Financial) Regulator, the Central Bank," Mr Drumm said from his home in Wellesley in eastern Massachusetts. "I acted at all times in the interests of the bank and with the full backing of the regulator."
Former Central Bank governor John Hurley was unavailable for comment yesterday. Mr Neary refused to comment to the Irish Independent when approached outside his home in Dundrum yesterday.
Proof
Both men have been criticised in the report drawn up by Central Bank governor Patrick Honohan, who found their organisations to have been "timid", "excessively deferential" and "accommodating" but no serious investigation has unearthed proof that the bank or regulator were kept fully informed of Anglo's decisions.
Mr Drumm's interview contains an apology of sorts. "At a human level there isn't a day goes by, all day, and sometimes all night, (that) I'm (not) haunted by what we, as a bank, as a management, as the board of the bank, could have done differently to not end up where we ended up," he said.
The banker also reveals that Anglo decided back in 2004 to reduce exposure to Irish property but somehow failed to implement the policy because it was somehow unable to stand back from long-lasting relationships with borrowers.
Mr Drumm, who has an Anglo pension worth more than €5m which cannot be taken away from him, said he was "sick to my stomach" about the suffering in Ireland but still appeared unable to take responsibility for his actions, saying he would only do so when others took responsibility for theirs.
Monday, October 18, 2010
Tuesday, June 22, 2010
FEWER PEOPLE FACE LOSING THEIR HOMES
In the three months to the end of March, 10,500 properties were repossessed, 11 per cent down on the last quarter of 2009.
About 40,500 home owners went into arrears, down two per cent, said the Financial Services Authority.
That fall helped cut the number of mortgage holders in arrears for three consecutive quarters by about four per cent to 362,000.
Repossessions have been less than expected due to the low 0.5 per cent Bank of England base rate and support from the Government and lenders. The Council of Mortgage Lenders expects fewer than the 53,000 people it had forecast to lose their homes this year.
Mortgage advances in the first quarter were 22 per cent down as bad weather, the end of the stamp duty holiday and General Election uncertainty put off buyers.
About 40,500 home owners went into arrears, down two per cent, said the Financial Services Authority.
That fall helped cut the number of mortgage holders in arrears for three consecutive quarters by about four per cent to 362,000.
Repossessions have been less than expected due to the low 0.5 per cent Bank of England base rate and support from the Government and lenders. The Council of Mortgage Lenders expects fewer than the 53,000 people it had forecast to lose their homes this year.
Mortgage advances in the first quarter were 22 per cent down as bad weather, the end of the stamp duty holiday and General Election uncertainty put off buyers.
Monday, June 7, 2010
Asia Pacific server revenue up 8.8% in Q1: Gartner
Asia Pacific server shipments grew 27.3% to 371,060 units for the first quarter of 2009, compared to the same period last year, as economic recovery in the region continued during the quarter and firmed up business confidence across different segments, including small and medium businesses (SMBs), according to IT research and advisory firm Gartner.
Asia Pacific server revenue increased 8.8% to $1.76bn, compared to $1.62bn for the same period a year ago. Five sub-regions recorded year-on-year revenue growth, with Australia and New Zealand (ANZ), and ASEAN leading the pack with increases of 36.4% and 17.6%, respectively during the quarter. In Greater China and India, despite strong consumption of x86 servers, revenue growth was somewhat flat at 4.3 and 4.2%, respectively.
The research firm said x86 servers was a predominant platform that fostered market growth during the quarter. The product mix in this segment continued to move towards higher end platforms which resulted in faster revenue growth of 37.9% while shipment was up 30%.
Blade servers (including x86 blades and RISC/IA-64 blades) witnessed the fastest compared to other server form factors, rack and tower, with a 47.9% year-over-year shipment growth in 1Q10.
IBM held the highest market share in revenue with 39.1%, a lead of 5.8% over second-place HP. IBM server vendor revenue increased 8.2% to $690.1m, compared to same quarter last year. Dell gained the third spot with a market share of 12.9%, followed by Oracle and Fujitsu with market shares 5.6% and 1.5%, respectively.
In server shipments, HP retained the top spot with a market share of 31.9% in the first quarter of 2009. HP server shipments increased 44.7% to 118,444, compared to same period last year. Dell held the second spot with 23.9% market share, followed by IBM and Lenovo with 20.6% and 3.5% share, respectively..
Erica Gadjuli, principal research analyst at Gartner, said: “Server consolidation and virtualization still played important roles as growth engines in mature markets like Singapore, Taiwan, Hong Kong and Australia, driving faster adoption of new processors on richer configured servers. Demand came generally from a mix of financial and public sectors in those markets.”
Asia Pacific server revenue increased 8.8% to $1.76bn, compared to $1.62bn for the same period a year ago. Five sub-regions recorded year-on-year revenue growth, with Australia and New Zealand (ANZ), and ASEAN leading the pack with increases of 36.4% and 17.6%, respectively during the quarter. In Greater China and India, despite strong consumption of x86 servers, revenue growth was somewhat flat at 4.3 and 4.2%, respectively.
The research firm said x86 servers was a predominant platform that fostered market growth during the quarter. The product mix in this segment continued to move towards higher end platforms which resulted in faster revenue growth of 37.9% while shipment was up 30%.
Blade servers (including x86 blades and RISC/IA-64 blades) witnessed the fastest compared to other server form factors, rack and tower, with a 47.9% year-over-year shipment growth in 1Q10.
IBM held the highest market share in revenue with 39.1%, a lead of 5.8% over second-place HP. IBM server vendor revenue increased 8.2% to $690.1m, compared to same quarter last year. Dell gained the third spot with a market share of 12.9%, followed by Oracle and Fujitsu with market shares 5.6% and 1.5%, respectively.
In server shipments, HP retained the top spot with a market share of 31.9% in the first quarter of 2009. HP server shipments increased 44.7% to 118,444, compared to same period last year. Dell held the second spot with 23.9% market share, followed by IBM and Lenovo with 20.6% and 3.5% share, respectively..
Erica Gadjuli, principal research analyst at Gartner, said: “Server consolidation and virtualization still played important roles as growth engines in mature markets like Singapore, Taiwan, Hong Kong and Australia, driving faster adoption of new processors on richer configured servers. Demand came generally from a mix of financial and public sectors in those markets.”
Monday, May 24, 2010
Bankcard holders more willing to spend
BEIJING: Chinese bankcard holders' were increasingly willing to spend in April as optimism about the Chinese economy grew, the latest consumer confidence figures showed Sunday.
The Bankcard Consumer Confidence Index (BCCI) stood at 86.80 in April, up 2.67 year-on-year but slightly lower than the record high of 86.89 in March.
The Chinese economy recovered with increased demand, industrial output, employment and imports in April.
Moreover, measures to cool China's overheated property market also boosted consumer confidence, the report said.
Many bankcard holders were willing to spend on discretionary items during the many sales campaigns ahead of the Labor Day holidays from May 1 to 3, the report said.
The BCCI index is compiled by Xinhua News Agency and China UnionPay, a national bankcard association.
They jointly started compiling the index in April 2009 based on bankcard transaction data and analysis of structural changes in urban consumption.
The Bankcard Consumer Confidence Index (BCCI) stood at 86.80 in April, up 2.67 year-on-year but slightly lower than the record high of 86.89 in March.
The Chinese economy recovered with increased demand, industrial output, employment and imports in April.
Moreover, measures to cool China's overheated property market also boosted consumer confidence, the report said.
Many bankcard holders were willing to spend on discretionary items during the many sales campaigns ahead of the Labor Day holidays from May 1 to 3, the report said.
The BCCI index is compiled by Xinhua News Agency and China UnionPay, a national bankcard association.
They jointly started compiling the index in April 2009 based on bankcard transaction data and analysis of structural changes in urban consumption.
Monday, April 26, 2010
J.P. Morgan Brazil investment trust attracts £46.7m
The J.P. Morgan has raised £46.7m for its Brazil investment trust, the first UK closed-ended company focused on the Latin American country.
Retail investors accounted for £18.6m of the money raised, with the rest coming from institutional accounts. J.P. Morgan targeted £50m for the launch.
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Managers Sebastian Luparia and Luis Carrillo plan to run a concentrated portfolio of 40 to 45 stocks, investing in companies which will benefit from increased domestic spending.
It means the trust will be unlikely to hold Petrobras and Vale, which account for a combined 40% of the Brazilian stock exchange.
The trust will be overweight consumer discretionary, consumer staples and industrials, but be underweight energy and materials. Its benchmark is the MSCI Brazil 10/40 Index, which limits any constituent to a maximum of 10% and the top five to 40%. However, the managers intend to diverge substantially from the index.
“When investors think about Brazil, they think the economy is commodity driven because the exchange is so weighted to this area,” client portfolio manager Claire Simmonds says.
“However, domestic consumption accounts for 60% of Brazil’ GDP and is much more diversified than the index would suggest.”
“We want the fund to reflect how the Brazilian economy looks now, rather than how than reflect the stock exchange. We are prepared to go all the way down the market capitalisation spectrum.”
The trust has a management fee of 1% with performance fee equal to 10% of any outperformance of its NAV, providing NAV growth has been positive.
Retail investors accounted for £18.6m of the money raised, with the rest coming from institutional accounts. J.P. Morgan targeted £50m for the launch.
ADVERTISEMENT
Managers Sebastian Luparia and Luis Carrillo plan to run a concentrated portfolio of 40 to 45 stocks, investing in companies which will benefit from increased domestic spending.
It means the trust will be unlikely to hold Petrobras and Vale, which account for a combined 40% of the Brazilian stock exchange.
The trust will be overweight consumer discretionary, consumer staples and industrials, but be underweight energy and materials. Its benchmark is the MSCI Brazil 10/40 Index, which limits any constituent to a maximum of 10% and the top five to 40%. However, the managers intend to diverge substantially from the index.
“When investors think about Brazil, they think the economy is commodity driven because the exchange is so weighted to this area,” client portfolio manager Claire Simmonds says.
“However, domestic consumption accounts for 60% of Brazil’ GDP and is much more diversified than the index would suggest.”
“We want the fund to reflect how the Brazilian economy looks now, rather than how than reflect the stock exchange. We are prepared to go all the way down the market capitalisation spectrum.”
The trust has a management fee of 1% with performance fee equal to 10% of any outperformance of its NAV, providing NAV growth has been positive.
Tuesday, March 30, 2010
Friday, March 19, 2010
Get your kids to fund their nest eggs
Naturally, affording retirement isn't an issue that weighs heavily on the minds of young people just starting off in the workforce. So it's no surprise that only 28% of workers under age 25 contribute to employer-sponsored retirement plans, as reported by tax information service CCH.
But as a parent, you don't want your child to end up behind. And with fewer workers being offered corporate pension plans, individual savings are increasingly important in determining quality of life in retirement. As for convincing your kid of this ...
Show the cost of waiting
You know that time is a powerful factor in building wealth. But does your child? Demonstrate with numbers: A 25-year-old saving $250 a month before taxes -- the equivalent of $188 after taxes in the 25% bracket -- will have $656,000 by age 65, assuming a 7% average annual return; if he instead waits until 35 to start saving, he needs to stash more than $500 a month to get to the same amount.
Use the calculators on our website, at cnnmoney.com/tools, to run more scenarios. Share your own experiences too. If you've been a disciplined saver, explain what it means for your retirement; if not, say what the consequences might be, says Atlanta financial planner Mary Claire Allvine.
Explain the incentives
Many young adults don't realize how much money they're leaving on the table if their company offers a savings match and they're not contributing. Show your kid: If he's making $50,000, a match of 50¢ on the dollar up to 6% of salary is worth about $1,500 a year.
If your kid argues that he won't be at the job long enough to vest, explain the other benefits of employer retirement plans, such as pretax contributions and deferred growth. And if you can afford to, create your own match by contributing to an IRA on your child's behalf contingent on his saving, says Hadley, Mass., financial planner Allen Davis.
Play financial adviser
Offer your wisdom in choosing investments, which can be intimidating to a beginner. Not confident in your own knowledge? Suggest a target-date mutual fund, which adjusts the mix of stocks and bonds to grow more conservative as retirement nears. Or have your kid pick stock and bond index funds in an 80/20 mix, an allocation that won't need to be changed for a decade or so.
But as a parent, you don't want your child to end up behind. And with fewer workers being offered corporate pension plans, individual savings are increasingly important in determining quality of life in retirement. As for convincing your kid of this ...
Show the cost of waiting
You know that time is a powerful factor in building wealth. But does your child? Demonstrate with numbers: A 25-year-old saving $250 a month before taxes -- the equivalent of $188 after taxes in the 25% bracket -- will have $656,000 by age 65, assuming a 7% average annual return; if he instead waits until 35 to start saving, he needs to stash more than $500 a month to get to the same amount.
Use the calculators on our website, at cnnmoney.com/tools, to run more scenarios. Share your own experiences too. If you've been a disciplined saver, explain what it means for your retirement; if not, say what the consequences might be, says Atlanta financial planner Mary Claire Allvine.
Explain the incentives
Many young adults don't realize how much money they're leaving on the table if their company offers a savings match and they're not contributing. Show your kid: If he's making $50,000, a match of 50¢ on the dollar up to 6% of salary is worth about $1,500 a year.
If your kid argues that he won't be at the job long enough to vest, explain the other benefits of employer retirement plans, such as pretax contributions and deferred growth. And if you can afford to, create your own match by contributing to an IRA on your child's behalf contingent on his saving, says Hadley, Mass., financial planner Allen Davis.
Play financial adviser
Offer your wisdom in choosing investments, which can be intimidating to a beginner. Not confident in your own knowledge? Suggest a target-date mutual fund, which adjusts the mix of stocks and bonds to grow more conservative as retirement nears. Or have your kid pick stock and bond index funds in an 80/20 mix, an allocation that won't need to be changed for a decade or so.
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