Tag Archives: Allied Irish Bank

Death and Taxes

Benjamin Franklin in a letter to Jean-Baptiste Leroy in 1789, stated that

‘In this world nothing can be said to be certain, except death and taxes.”

While not wanting to speak ill of the dead, for the late Brian Lenihan the certainty of death is now is all too apparent, yet because of his calamitous decision to give a blanket guarantee to our banks when the financial crisis came to a head in September 2008, for the rest of us, the certainty of taxes will remain for a very long time indeed. Taxes on our homes, taxes on our wages, taxes on our water, taxes on our fuel, taxes on generations to come, and all as a result of a decision taken in in secret, without consultation or accountability, by a small group of bankers, economists and political leaders.

The recent outpouring of grief and the media love-in over the death of Mr Lenihan concentrated on the man’s personal courage in the face of death, and his affability and generous personal nature.  He was, we were told, a man of the people. Though I did not know him, I am sure that all of this is most likely true. However HSE statistics show that on the same day as Mr Lenihan passed away, close on one hundred people in total died in Ireland. I am sure that much could be said of the personal courage and affability of many of those people also, but they will have died in relative quiet in comparison to the huge coverage afforded to Mr Lenihan, for they were ordinary people, perhaps not as important to society as one such as Mr Lenihan. Nonetheless, history will record that Mr Lenihan, along with a select few politicians, economists, civil servants and bankers, is unique among us as being the only person who signed away our nations future by lumbering us with the debts of reckless and criminal bankers, a future which, had he listened to the advice given at the time by Merrill Lynch a consultancy company whom the Government hired and paid 6 million to for a few days work and who advised him against a blanket guarantee, might have lead us to a much different place today. So while we can mourn the passing of Brian Lenihan the man, we must also face the fact that Brian Lenihan the politician, due to his actions on that fateful September night, played a huge personal part in the destruction of our economy and our society and ensured that whatever about the certainty of death, the certainty of taxes will remain with the rest of us ordinary mortals for generations to come.

For Mr Lenihan at least, these certainty’s  are no longer a worry.

Ronan Gallagher


Highway Robbery

There are some things that just don’t make sense. Things like taxing ordinary workers, cutting back services, and hitting Health and Education with massive cuts to bail out reckless and possibly criminal bankers in return for nothing more than their toxic debts.

We are told that this must happen in order to protect our international reputation. When we examine this more closely we find that those who we are concerned with impressing are actually the people who helped fuel the crisis in the first place. For example Standard and Poors are now judging our future credit rating unfavourably due to prevailing economic conditions. Fair enough you might say but you might also reasonably ask these people why, if they are such good judges of economic health, they did not foresee the crisis in the first place? Presumably their ability to judge the credit rating and economic outlook for nation states did not just come last week, or did it? Is it possible that these people decided that our borrowings should cost more because they know we need to borrow more to survive the crisis they didn’t see coming? You know how the capitalist mantra goes, the greater the demand, the higher the price. Simply put, make hay while the sun shines.

We are also told that if we don’t implement these harsh economic conditions on our citizens, our country will be taken over by the IMF who will ruthlessly cut services and slash budgets like some maniac Texan with a chainsaw. Perhaps someone could explain how this could happen? Was their an agreement made by any Government, past or present, that effectively borrowed money and put up as collateral the economic independence of this great country? Did I miss a referendum asking me to vote for something like this? This is a bit like waking up one morning to find that your wife, mother, or father, had borrowed a load of money and without your permission had given as collateral the title to your home and now that the money has been wasted, ask you to pay the debt in order to save the family home from takeover by their creditors.

It is a sobering thought that the recent 7 billion of state money pumped into our sick and blighted banks is three times that which the last mini budget tried to claw back from the taxpayer and almost equal to what will be clawed back over the next few budgets. Now I’m no rocket scientist but when you look at it that way you begin to get a sense of what is happening here. The citizens of Ireland and many generations to come, are being forced (not asked) to pay to prop up an unreformed, greed driven banking system and an incompetent, reckless Government which has failed miserably to govern this country in a responsible and prudent manner over the last ten years.

In the murky world where politics and business meet, that unfortunately does make sense.


Garret Fitzgerald and the 200K AIB loan write off.

Are there no heroes left? Has ‘Goodness’ abandoned us altogether? Has it scurried off into the night wearing a mohair coat?

I ask this only because I am in shock. Yes. In shock I am. Having listened to Garret Fitzgerald or ‘Garret the Good’ at the weekend, exhorting us all to vote for Fianna Fail’s Eoin Ryan, fearing for his health, I googled him and came across the following report on RTE’s website dated Wednesday, 17 February 1999 which reads

‘Former Taoiseach Garret Fitzgerald has confirmed that AIB and Ansbacher wrote off debts of almost £200,000 that he owed them six years ago. He was in financial difficulties at the time because of the collapse of the aircraft leasing company, GPA, in which he was a shareholder. Dr Fitzgerald was quoted in today’s Examiner newspaper as pointing out that the write off occurred after he had left politics. He insisted that no favours were asked or given.’

Now maybe I’m being picky here but if you took out the name Garret Fitzgerald and replaced it with Charlie Haughey in the above piece, could you tell the difference between the two? I heard Eoghan Harris allude to this last year on the Late Late Show but put it down to Eoghan just being daft! But now I find that, though Eoghan is still as daft as a fish on a bicycle, Garret was indeed the beneficiary of a 200k loan write off courtesy of AIB, that great friend and patron of politicians. Add to this the fact that this all took place in 1993 when 200k was a hell of a lot of money and one begins to get a bad feeling.

The Moriarity Tribunal investigated the matter, and compared the treatment by AIB of Fitzgerald with their treatment of Charles Haughey. They found no evidence of any wrongdoing, indeed the Tribunal heard evidence as to the considerable hardship that Fitzgerald went to, to the extent of selling of his family home to repay the debt to the best of his ability.

The Tribunal concluded in their report:

In summary it would appear that in compromising his indebtedness with the Bank, Dr. Fitzgerald disposed of his only substantial asset, namely, his family home at Palmerston Road, a property which would now be worth a considerable sum of money. As in Mr. Haughey’s case, there was a substantial discounting or forbearance shown in Dr. Fitzgerald’s case. However in contrast with Mr. Haughey’s case, Dr. Fitzgerald’s case involved the effective exhaustion of his assets in order to achieve a settlement whereas Mr. Haughey’s assets were retained virtually intact.

So, Garret had to sell his house to cover part of his loan from AIB. Fair enough. That’s what many people would expect to have to do when the chips are down and most likely will have to do in the coming years, due to the banking crisis caused by a lack of proper regulation by our politicians. But how many of these poor unfortunates, many who are in negative equity, will have the balance of their loans written off by AIB like Garret Fitzgerald, Garret the Good, our former Taoiseach did?

Answers on a postcard please to…..


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