No thanks for Casey for donning green jersey
The Central Bank and the Financial Regulator knew exactly what Anglo was up to, says Brendan O'Connor. So is Denis Casey just a useful patsy?
'That's fine. That's grand." That's what Mary Elizabeth Donoghue of the Financial Regulator's office told Anglo's head of Capital Markets John Bowe when he explained to her how Anglo was window-dressing its balance sheet by getting a deposit from ILP and designing it to look like it had been put on deposit by an asset manager.
It was optics, to make it look as though Anglo had more deposits than it did so that the markets, and the people, wouldn't lose confidence in it. Just optics. Show a strong number to the markets.
ILP first gave Anglo a dig-out in March 2008 and then Anglo reciprocated in June. Anglo wanted a bigger wad of what one lawyer referred to as candy floss in September and ILP agreed, providing Anglo would return the favour at its year end. The numbers involved got bigger all the time, because as one of the Anglo boys said to another: "You might as well be hung for a sheep as for a lamb."