10% of Anglo Irish Bank’s Profits Came from Defrauding Customers


Guido has been given documents coming from inside Anglo Irish Bank’s Treasury Department dating back to 1997 which strongly suggest there was a board level approved conspiracy to over-charge corporate customers. The scale of the fraud was massive and it may have contributed up to 10% of the now nationalised bank’s profits.

The Anglo-Irish Bank’s fraud comes from overstating the DIBOR base rate on which customer’s loans were calculated. DIBOR is the Dublin Interbank Offered Rate, calculated and published daily like LIBOR, it was set in stone and used by all Irish banks as the basis for settlement of trades and financial transactions before they joined the Euro.

Essentially Anglo-Irish lied to customers as to what that the real base rate was by adding between 1/4% to 1/3% to the official underlying rate, then they added the usual banker’s spread that they will have agreed contractually with their corporate customers.

Guido’s source says that inside Anglo-Irish the false rate quoted to borrowers was known internally as “TIBOR” after Tiarnan O’Mahoney, the Director and Chief Operating Officer to whom Des Whyte, the treasury manager who prepared the figures, reported. Sources say that the “TIBOR” version of “DIBOR” was not used with sophisticated money market customers who would have queried the rate.

Guido has done some back of an envelope calculations based on the bank’s 1999 Annual Report. The customer loan book is reported to have been €5.7 billion (IR£4.4 billion). Assuming that only half the clients were over-charged the average of 30 basis points the bank will have made an extra €8.6 million, (IR£6.6 million) on the bottom line. That was some 10% of the bank’s reported profits.

According to a source the fiddle continued throughout the late 90s into the early half of the next decade as Anglo-Irish’s loan book grew on the back of the Celtic tiger. Customers could have been ripped off by as much €100 million.

N.B. Guido has documentation to back up this story – if the Dublin authorities want it…

UPDATE : There was an error with the graphic illustration above earlier which has now been corrected to show the correct corresponding date.




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

The Donald asks what America wants from a President…

“I spent less, I won the most. Isn’t that what you want from your President for a little time?”

Top Posts This Week

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.

Facebook

PATRICK ROCK TRIAL: ‘IT WAS JUST LIKE WATCHING BRITNEY’ PATRICK ROCK TRIAL: ‘IT WAS JUST LIKE WATCHING BRITNEY’
ICM SHOWS LEAVE AHEAD ICM SHOWS LEAVE AHEAD
EU CITIZENS SENT REFERENDUM POLLING CARDS EU CITIZENS SENT REFERENDUM POLLING CARDS
LABOUR ACTIVIST OUTS CAT SMITH’S CAMPAIGN MANAGER LABOUR ACTIVIST OUTS CAT SMITH’S CAMPAIGN MANAGER
KHAN’S £105,000-A-YEAR AIDE NEVER WORKED OUTSIDE POLITICS KHAN’S £105,000-A-YEAR AIDE NEVER WORKED OUTSIDE POLITICS
LORD SUGAR’S EU JOURNEY LORD SUGAR’S EU JOURNEY
PIERS CORBYN FORECAST “TREMENDOUS DRY, SUNNY JUNE” PIERS CORBYN FORECAST “TREMENDOUS DRY, SUNNY JUNE”
LEAVE POLL SURGE AS MIGRANT CRISIS CUTS THROUGH LEAVE POLL SURGE AS MIGRANT CRISIS CUTS THROUGH
CAT SMITH’S CAMPAIGN ORGANISER’S COVER-UP BUSTED CAT SMITH’S CAMPAIGN ORGANISER’S COVER-UP BUSTED
KNIGHTLY LOSS OF BRITISH INFLUENCE KNIGHTLY LOSS OF BRITISH INFLUENCE
MP Referendum List: Leave Gain MP Referendum List: Leave Gain
Labour Reinstate Race Row Corbynista Labour Reinstate Race Row Corbynista
Watson’s Dodgy Flat Mate Watson’s Dodgy Flat Mate
Vote Leave Offer £50 Million Payout to Predict Euros Vote Leave Offer £50 Million Payout to Predict Euros
Thug Life: MP Offers to Take “Baseball Bat” Against Yobs Thug Life: MP Offers to Take “Baseball Bat” Against Yobs
Telegraph Bloodbath: Ian MacGregor ‘Not’ Demoted Telegraph Bloodbath: Ian MacGregor ‘Not’ Demoted
Corbyn Orders Review of Chaotic Office Corbyn Orders Review of Chaotic Office
CAT SMITH EXPENSES COVER UP CAT SMITH EXPENSES COVER UP
ETHNIC MINORITY BRITS BACK BREXIT ETHNIC MINORITY BRITS BACK BREXIT
REMAIN TAKES PROJECT FEAR TO CHURCH REMAIN TAKES PROJECT FEAR TO CHURCH
SOUBRY’S BIG NISSAN-DERSTANDING SOUBRY’S BIG NISSAN-DERSTANDING
JIM SHANNON ORDERED TO REPAY £14,000 EXPENSES JIM SHANNON ORDERED TO REPAY £14,000 EXPENSES
PAY “ONLY REAL RED LINE” FOR BMA JUNIOR DOCTOR LEADERSHIP PAY “ONLY REAL RED LINE” FOR BMA JUNIOR DOCTOR LEADERSHIP
NET MIGRATION UP 20,000 TO 333,000 NET MIGRATION UP 20,000 TO 333,000
POLICE INVESTIGATING TESSA MUNT ELECTION EXPENSES POLICE INVESTIGATING TESSA MUNT ELECTION EXPENSES
LEAVE.EU ON HOOK FOR £500,000 BREXIT GIG LEAVE.EU ON HOOK FOR £500,000 BREXIT GIG
TRUMP SINGS “WE’RE GONNA BUILD A WALL” TRUMP SINGS “WE’RE GONNA BUILD A WALL”
OZBOT VERSUS ANDROGENOID OZBOT VERSUS ANDROGENOID
EDDIE IZZARD’S HOTEL BILLS NOT LAWFULLY DECLARED EDDIE IZZARD’S HOTEL BILLS NOT LAWFULLY DECLARED
POLITICAL PARTY RICHLIST POLITICAL PARTY RICHLIST