US feared global banking collapse if Anglo Irish Bank failed
Treasury Secretary Tim Geithner warned Europe to bail bank out
U.S. Treasury Secretary Timothy Geithner was petrified that the now-defunct Anglo Irish Bank would default on its financial obligations and create a massive new recession.
He and European officials looked at the bank’s problems as “the most serious global banking issue” since the collapse of Lehman Brothers in 2008 according to The Irish Times.
Geitner urged the European Union to flex its muscle during a G20 summit meeting in Seoul, South Korea on November 11, 2010, 10 days before the Irish government applied for financial aid from the EU and the International Monetary Fund.
Geithner was well aware of the mounting Irish crisis, particularly as it related to Anglo Irish Bank’s difficulties.
European officials feared the Irish government wasn’t taking the growing problem seriously enough, with many of them looking at Anglo Irish as the next Lehman Brothers.
Geithner urged Europe to exert control over the Irish crisis during a meeting with the finance ministers of the G7 nations – the U.S., Germany, France, Britain, Canada, Japan and Italy – during the G20 summit in Seoul a year ago.
Bill Clinton's warning about Irish economic prospects -- says country needs to forgive mortgage debt much quicker
Anti-Catholic insults rife in 'A Very Harold and Kumar 3 D Christmas'----lesbian nuns, topless angels, playboy Jesus all add insult to injury
The stunning downfall of Anglo Irish Bank, and the EU-IMF Irish bailout that followed, had been predicted by European authorities as early as September of last year, according to a new account of the Irish financial crisis in today’s Irish Times.
The paper reported that Irish finance officials were fearful of the country’s balance books during the early part of September 2010, as borrowing costs were rapidly reaching dangerous levels.
The Irish minister for finance at the time, Brian Lenihan, who passed away earlier this year from pancreatic cancer, was informed of the situation by
officials at the Irish Department of Finance and the Irish Central Bank.
Together with the EU economic commissioner Olli Rehn, Lenihan agreed to liaise with the IMF about Ireland’s finances.
“I would say that latest, from mid-September in my thinking, the probability of Ireland avoiding a rescue package was very small,” said Rehn, according to the new account of the pre-bailout drama published in the Times.
At the time, the Irish government, led by Prime Minister Brian Cowen, denied that Ireland would need IMF help with its finances, though the truth was finally revealed on November 21 of last year when Ireland made its formal application for a bailout.
- An open letter in strong defence of capitalism.
- Sarah Palin is saving Christmas
- Racist incidents in Ireland up by 85 percent...
- Gay teacher fired from Catholic school after...
- Virginia governor slammed by doctor over...
- Top Christmas Irish ads that will be bring...
- Irish drugs mule to escape full trial and...
- Gay wedding cakes latest target of anti-gay...
- Irish radio presenter suspended after anti-Isra
- Nelson Mandela was against IRA decommissioning.
"...Spending is Ireland, around Christmas is down by 25 percent since 2006 ..." How coincidental! That matches up with the increases in incRacist incidents in Ireland up by 85 percent says Immigrant Council
Chuck - A very well stated lesson in realism. That's exactly the way it is.A Magdalene Laundry US adoptee who holds no hatred for Irish nuns
What a HORRIBLE lede! Thomas PATRICK Sacco - and I feel NO need to explain MY Irish ancestry!Massive Irish property auction as 18-hole golf course sells for $900,000
Typo in caption - $90,000. Or was it in the headline - $900,000?