Economy Rigging 1

Background info on Irelands CDO ops April 13, 2010

Filed under: Uncategorized — bashstreetkidjailbreak @ 9:45 pm

Anon:

64 legal firms are to advise this bureaucratic monster our government saw fit to implement against the will of the people of Ireland. The list is long, but Maples & Calder grabbed my attention from the moment I saw they are appointed to the panel, and they are unique to the list.

Maples & Calder opened their Irish office in 2006, now wasn’t that excellent timing in deed!

They are corporate law specialists, and in no time quadrupled their share of the advisory market to Irish investment funds. (Lipper Report) In 2009 they increased their market share by 320%.

In November 2009 they advised 15.6 % of funds serviced in Ireland. In context, in 2008 they had 3.7 % market share.

In July 2009 Source UK, was launched on the Iseq. It is a joint venture between Morgan Stanley, Goldman Sachs and Merrll Lynch, a physical Gold exchange commodity platform on the Iseq. Maples & Calder were the legal advisers. This was the last of the 13 ETF’s and 22 ETC’s that were launched and are now domiciled in Ireland. (ETF, exchange traded funds, ETC, exchange traded commodity)

In deed Source UK, had choices, and their jurisdictional shortlist had Cayman Islands, BVI, Luxembourg and Ireland as possible locations for their financial product platform.

The reason the were advised to go to Ireland was simple. Financial services infrastructure was there, well, this was in place in other locations as well, but the main reason was the funds regulatory regime in Ireland.

Well, we learnt what that was all about when the truth about the former chief executive of the Regulator, Patrick Neary enlightened us! Let’s just quickly remember the events concerning Anglo.

TOP SECRECT
CTU CLASSIFIED DOCUMENT
TO: JACK BAUER ON PRESIDENTIAL ORDERS

03/2006:
Maples & Calder corporate and compliance specialist, pay around 60 Euro rent per sq ft for the 30,139 sq ft (2800 sqm) on fourth and fifth floor at 75 St Stephens Green. Located on the site of the former headquarters of the Department of Justice.

02/2007:
Our very own and much beloved Sean Fitzpatrick deliberately lies to the AGM that he is confident and happy with risk management in place and has absolutely no concerns about the bank’s exposure to the construction sector. Fwiw. I’

11/2007:
Anglo CEO David Drumm states ‘These results might silence a few people’, when they reported 46% increase in pretax profits to 1,200 million. Well, later we learnt how Ernst & Young was involved in possible accounting frauds concerning this Zombie bank.

07/2008
Sean Quinn buys 15% stake in Anglo Irish. 09/2008

Lehmann! Anglo’s looses 50% value on 29th of September, a day later, in a panic, and the only one in Europe, Lenihan states that loans and deposits in Irish owned banks and building societies are guaranteed by the state until 09/2012.

02/2009

Anglo lent 10 clients were 451 mios to buy bank Anglo shares, in an attempt to manipulate their share price. PWC’s reports that Anglo’s top 15 clients of in excesss of 0,5 billion

On the first of October 2007, Nollaig Murphy at this time in A&L Goodbody and now Partner at Maples & Calder wrote :

Twelve months ago, a large part of the new growth could be partly attributed to Ireland’s popularity as a collateralised debt obligation (CDO) location, in particular managed CDOs and CDO tranchelets, which were both very hot areas in the market at the time. The Irish legislature had previously introduced a blanket VAT exemption for investment management services provided to Irish structured bond issuers, representing a saving of 21 per cent on what would normally be relatively substantial fees.

…. Ireland is now the leading European onshore jurisdiction for special-purpose vehicles (SPVs), with in excess of an estimated 2,000 incorporations a year, more than double that of two years ago…..

….
Rather like the CDO legislation mentioned previously, such a legislative move has led to an increase in business as in addition to now being a lower capitalised vehicle, such Irish issuers have never had a requirement to retain a minimum profit or ‘turn’ unlike some rival jurisdictions in Europe. A classic case of this innovation was the recent Channel Capital CDPC transaction. Channel Capital, an Irish Section 110 vehicle, is the first credit derivative product company (CDPC) to be established in Europe. CDPCs are highly rated (triple-A) investment companies which sell protection through credit defaults swaps to take credit risk to gain return on capital.

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