GO TO JAIL! Do not pass go, do not collect €200 million

The talk of ‘Economic Treason’ and calling for the heads of every banker are sadly starting to gain more and more traction, all of this is happening without concrete evidence thus far of exactly ‘who’ we are chasing and ‘for what’ specifically, largely the financial leaders greed is central to accusations of wrongdoing, and while greed may not be morally acceptable to right thinking individuals it is not actually a crime.

The FT recently had an article showing that executive pay misguided but that it didn’t make them criminal by nature, stupidity is an ‘equal opportuntities’ trait. It is important that every person in finance is not villified for what was something that all of society played a part in.

One question nobody is asking is ‘what part did I play in this?’, as a brokerage we are culpable, as a consumer I am personally culpable and as a citizen I will be paying for mistakes made on both …

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The Phoenix of Securitization: Irish Banks test the market

In the last week there have been two largely un-noticed events, namely the fact that two Irish banks have put a securitization offering on the market.

What is securitization? By definition it is the aggregation of similar instruments into a negotiable security. If you didn’t get that I’ll put it in plain-speak. You can take any object that provides a degree of income and put them all in a big box, you then sell the box as an actual financial investment. How does that work with Irish banks? A bank will take a bundle of loans (generally of a certain class – loans with similar loan amounts, loan to values, term of loan etc.) and put them all into this box and when they sell the box that is described as a ‘securitization‘.

The benefit for the buyer is that there is a structured income stream from the box of loans, even if a …

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