Sins of the Father

by Conor McCabe

  38 The Irish Times, 29 May 1968.

  39 Ibid., 17 September 1968.

  40 Ibid., 29 May 1968.

  41 Ibid., 28 May 1969.

  42 Ibid., 2 January 1969.

  43 Ibid., 2 January 1969.

  44 Dáil Debates, 25 February 1969, Vol.238, paragraphs 1,542-1,558. The figures are my calculations, based on the Minister’s reply.

  45 MacLaran Malone & Beamish, p.53.

  46 Dáil Debates, 25 February 1969, Vol.238, paragraph 1,558.

  47 The Irish Times, 5 January 1962.

  48 Ibid., 10 June 1969.

  49 Kieran Allen, Fianna Fáil and Irish Labour: 1926 to the Present (London, 1997), p.138

  50 Rosita Sweetman, On Our Knees: Ireland 1972 (London, 1972), pp30-31.

  51 Committee on the Price of Building Land, Report to the Minister for Local Government (Dublin: Government Publications, 1974), p.4. All subsequent quotes from the Kenny Report are from his publication.

  52 Ibid., p.11.

  53 Ibid., p.24.

  54 Ibid., p.36.

  55 Ibid., p.40.

  56 Ibid., p.94.

  57 The Irish Times, 26 January 1974.

  58 Ibid.

  59 Ibid.

  60 ‘End Foot-dragging on Kenny Report Law?’ Press statement issued on 16 February 2007, http://www.greenparty.ie/en/news/latest_news/end_foot_dragging_on_kenny_report_law_sargent (accessed 2 September 2010).

  61 There is a scanned copy of the Kenny Report available online via the Dublin Opinion blog (http://dublinopinion.com/2009/05/15/committee-on-the-price-of-building-land-report-to-the-minister-for-local-government-robert-molloy-chairman-mr-justice-j-kenny-dublin1974/).

  62 The Irish Times, 26 August 1955.

  63 Ibid.

  64 Ibid., 14 December 1955.

  65 Ibid.

  66 Kevin C. Kearns, ‘Ireland’s Mining Boom: Development and Impact’, American Journal of Economics and Sociology, Vol.35, No.3 (July 1976), p.253.

  67 Resources Study Group, Irish Mining – the Need for Action. A Case Study of Exploration (Dublin, 1971), pp5-6.

  68 C.R. Aldwell, ‘Some examples of mining in Ireland and its impact on the environment’, Environmental Geology, Vol.15, No.2 (1990), p.145.

  69 Irish Mining, p.11.

  70 Kearns, p.254.

  71 Dáil Debates, 11 April 1967, Vol.227, paragraphs 1,276-77.

  72 Kearns, p.260.

  73 Resources Study Group, Navan and Irish Mining: Documentation of an £850,000,000, Robbery (Dublin, 1972), p.3.

  74 The Irish Times, 5 November 1970.

  75 Ibid., 31 August 1971.

  76 Ibid., 27 February 1974.

  77 Ibid., 23 March 1993.

  78 Boliden website, ‘Facts and Figures’, http://www.boliden.com/www/BolidenSE.nsf/ (accessed 9 September 2010).

  79 The Irish Times, 23 March 1993.

  80 Quote from Justin Keating, Minister for Industry and Commerce, December 1973. Quoted in Research Section: Sinn Féin, The Great Irish Oil and Gas Robbery: A Case Study of Monopoly Capital (Dublin, c.1975), p.27.

  81 The Irish Times, 6 February 1974.

  82 Great Oil and Gas Robbery, p.14.

  83 Ibid., p.15; The Irish Times, 28 July 1977.

  84 The Irish Times, 28 July 1977.

  85 Ibid., 8 February 1974.

  86 Ibid.

  87 Ibid.

  88 Ibid., 10 April 1974.

  89 ‘Marathon Oil Corporation Announces Sale of Irish Subsidiary’, Press release, 17 December 2008, http://www.marathon.com/News/Press_Releases/Press_Release/?id=1237225 (accessed 14 September 2010).

  90 The Irish Times, 28 July 1977.

  91 Robert Allen & Tara Jones, Guests of the Nation: People of Ireland Versus the Multinationals (London, 1990), p.7.

  92 The Irish Times, 7 May 1969.

  93 Guests of the Nation, p.20.

  94 The Irish Times, 7 April 1967.

  95 Guests of the Nation, p.14.

  96 The Irish Times, 27 April 1966.

  97 Ibid., 7 April 1967.

  98 Ibid., 12 November 1969.

  99 Ibid., 7 April 1967.

  100 Ibid., 22 February 1968.

  101 Ibid., 30 October 1968.

  102 Ibid., 1 October 1968.

  103 Ibid., 1 November 1974.

  104 Ibid.

  105 Ibid., 13 January 1975.

  106 Ibid., 10 January 1979.

  107 Guests of the Nation, p.22.

  108 Chris Eipper, The Ruling Trinity: A Community Study of Church, State and Business in Ireland (Aldershot, 1986), pp50-1.

  109 Mr Niall Crowley, Chairman of Allied Irish Banks, The Irish Times, 25 March 1982.

  110 National Economic and Social Council, A Review of Industrial Policy: A Report Prepared by the Telesis Consultancy Group (Dublin: NESC, 1983), p.3. This report is commonly referred to as the Telesis Report.

  111 The Irish Times, 19 May 1980.

  112 Ibid.

  113 Telesis Report, p.3.

  114 Ibid., p.26.

  115 Ibid., p.12.

  116 Ibid.

  117 Ibid.

  118 Ibid., p.15.

  119 Ibid., p.16.

  120 Ibid.

  4. FINANCE

  1 The Irish Times, 14 February 1987.

  2 Dáil Report, 3 February 1926, Vol.14, paragraph 325.

  3 Originally there were eight members, but they were later joined by Mr J.L. Lynd of the Department of Finance. See The Irish Times, 4 February 1926; 22 January 1927.

  4 Dáil Report, 12 February 1926, Vol.14, paragraph 844.

  5 Dáil Report, 24 February 1926, Vol.14, paragraph 1,042.

  6 Dáil Report, 24 February 1926, Vol.14, paragraph 1,050.

  7 The Irish Times, 15 February 1926.

  8 Ibid., 24 April 1926.

  9 Ibid., 22 January 1927.

  10 Ibid., 22 January 1927. This edition contained a reprint of the main report and all quotes relating to the report are from this source.

  11 Ibid., 3 October 1931.

  12 Ibid., 27 October 1934.

  13 Ibid., 9 August 1938.

  14 Ibid., 8 August 1938.

  15 Dáil Report, 7 July 1939, Vol.76, paragraph 2,164.

  16 Ibec Technical Services Corporation, An Appraisal of Ireland’s Industrial Potentials (New York, 1952), p.20. All subsequent quotes from the capital finance section of Appraisal are taken from pp20-27.

  17 The authors noted that this practice ‘may reflect the choice of individual investors rather than bank initiatives’. The fact that the practise was systemic, though – well over half of all bank assets were held outside Ireland – would suggest a banking policy than a random convergence of events.

  18 The Irish Times, 28 August 1958.

  19 Padraig McGowan, Money and Banking in Ireland: Origins, Development and Future (Dublin, 1990), p.55.

  20 The Irish Times, 28 August 1958.

  21 Ibid., 23 August 1966.

  22 Ibid.

  23 McGowan, p.55.

  24 The Irish Times, 30 June 1967.

  25 Ibid., 29 September 1965.

  26 N.J. Gibson, ‘The Banking System,’ in Norman J. Gibson & John E. Spenser (eds), Economic Activity in Ireland: A Study of Two Open Economies (Dublin, 1977), p.230.

  27 Ibid.

  28 McGowan, p.60.

  29 Simon Carswell, Something Rotten: Irish Banking Scandals (Dublin, 2006), p.67.

  30 Ibid.

  31 The Irish Times, 26 May 1984.

  32 Ibid.

  33 Ibid., 28 February 1935.

  34 Ibid., 16 March 1985.

  35 Ibid., 8 August 1983.

  36 Carswell, p.68. The following account of ICI and the AIB bailout of 1985 draws heavily from his source, especially pp66-87.

  37 The Irish Times, 16 March 1985.

  38 Carswell, p.48.

  39 The Irish Times, 16 April 1983.

  40 Ibid.

  41 Ibid., 5 October 1978.

  42 Ibid., 2 November 1978.

  43 C
arswell, p.25.

  44 US investor at the Pensions 2000 Conference, Dublin, September 1996, reported in The Irish Times, 21 September 1996.

  45 The Irish Times, 13 April 1990.

  46 Guardian, 14 April 1990.

  47 The Irish Times, 4 January 1989; 14 June 1989.

  48 Ibid., 3 November 1989.

  49 Ibid., 31 October 1990.

  50 Ibid., 16 March 1990.

  51 Ibid., 25 September 1991.

  52 Ibid., 28 December 1990.

  53 Ibid., 11 September 1992.

  54 Ibid., 29 December 1992.

  55 Ibid., 25 April 1991.

  56 Peter Murray, chairman, Anglo Irish Bank, 24 January 2003, reported in The New York Times, 11 August 1991.

  57 The Irish Times, 14 November 1992.

  58 Ibid., 1 June 1992.

  59 Ibid., 24 January 1998.

  60 The New York Times, 1 April 2005.

  61 The Irish Times, 20 January 2006.

  62 Ibid., 25 August 2007.

  63 Ibid., 4 September 2007.

  64 The New York Times, ‘Economix’, 2 September 2010.

  65 The Irish Times, 21 September 1996.

  66 Ibid., 6 May 1996.

  67 Ibid., 3 May 1997.

  68 Frank Connolly, ‘Ireland’s Property Crash Could Have Been Avoided’, Irish Central, 23 August 2010. http://www.irishcentral.com/news/-Irelands-property-crash-could-have-been-avoided-101287479.html. Accessed 27 February 2011. All subsequent quotes relating to this article are from this source.

  69 The Irish Times, 10 December 1997.

  70 Frank McDonand & Kathy Sheridan, The Builders: how a small group of property developers fuelled the building boom and transformed Ireland (Dublin, 2008), p.165.

  71 The Builders, p.165.

  72 The Irish Times, 16 October 2004.

  73 Ibid., 11 November 2006.

  74 Ibid., 4 December 2006.

  5. FROM BANK GUARANTEE TO BAILOUT

  1 The Irish Times, 22 January 2011; Sunday Independent, 23 January 2011.

  2 The New York Times, 18 December 2008.

  3 The Irish Times, 4 September 2007.

  4 Dáil Debates, 9 July 2008, Vol.659, No.2, paragraph 628.

  5 The Banker, 1 July 2009.

  6 The Guardian, 8 October 2008.

  7 The Irish Times, 2 January 2009.

  8 US Securities and Exchange Commission, Mortgage-Backed Securities, http://www.sec.gov/answers/mortgagesecurities.htm (Accessed 29 January 2011).

  9 J. Kevin Corder & Susan M. Hoffmann, ‘Privatizing Federal Credit Programs: why Sallie Mae?’, Public Administration Review, Vol.64, No.2 (March-April 2004), p.182.

  10 The New York Times, 30 September 1999.

  11 Ibid.

  12 Ibid., 25 February 2004.

  13 ‘Private-Label Mortgage Back Securities’, Understanding Mortgage Securitization, http://securitization.weebly.com/private-label-mbs.html (Accessed 27 January 2011).

  14 The New York Times, 18 December 2007.

  15 The Financial Crisis Inquiry Commission, The Financial Crisis Inquiry Report: Final Report of the National Committee on the Causes of the Financial and Economic Crisis in the United States (Washington DC: 2011), p.xvii.

  16 Financial Crisis, p.xvi.

  17 Ibid., p.xx.

  18 Ibid., p.33.

  19 Ibid., p.xvi.

  20 Ibid., p.29.

  21 R. Alton Gilbert, ‘Requiem for Regulation Q: what it did and why it passed away’, Federal Reserve Bank of St Louis Review, Vol.68, No.2 (February 1986), p.22.

  22 ‘Requiem’, p.23.

  23 Financial Crisis, p.29.

  24 Ibid., p.30.

  25 Ibid., p.32.

  26 Ibid., p.446.

  27 Congressional Record, V.146, Pt.18, 15 December 2000, pp271-77.

  28 Financial Crisis, p.48.

  29 Ibid., p.xxiv.

  30 ‘Back to Basics’, The Irish Times, 12 May 2008.

  31 René M. Stulz, ‘Should we fear derivatives?’, Journal of Economic Perspectives, Vol.18, No.3 (Summer, 2004), p.177.

  32 Henry C.K. Liu, ‘The dangers of derivatives’, Asia Times Online, 23 May 2002, http://www.atimes.com/global-econ/DE23Dj01.html (Accessed 6 February 2011). All subsequent quotes from Liu are from this source.

  33 Jan Toporowski, Why the World Needs a Financial Crash and Other Critical Essays on Finance and Financial Economics (London, 2010), p.31.

  34 Fisher Black & Myron Scholes, ‘The pricing of options and corporate liabilities’, Journal of Political Economy, Vol.81, No.3 (May-June, 1973), p.641.

  35 Robert C. Merton, ‘Theory of rational option pricing’, The Bell Journal of Economics and Management Science, Vol.4, No.1 (Spring, 1973), pp141-183.

  36 René M. Stulz, ‘Should We Fear Derivatives?’, Journal of Economic Perspectives, Vol.18, No.3 (Summer, 2004), p.177.

  37 Henry C.K. Liu, ‘Derivative Market Reform Part 1: The Folly of Deregulation’, Asia Times Online, 3 December 2009, http://atimes.com/atimes/Global_Economy/KL03Dj02.html (Accessed 7 February 2011).

  38 The New York Times, 8 October 2008.

  39 Financial Crisis, p.46.

  40 Chelsea Wald, ‘Crazy Money’, Science, 12 December 2008.

  41 Henry C.K. Liu, ‘The dangers of derivatives’, Asia Times Online, 23 May 2002. All subsequent quotes from Liu are from this source.

  42 Financial Crisis, p.45.

  43 The New York Times, 8 October 2008.

  44 Ibid.

  45 Ibid.

  46 Financial Crisis, p.47.

  47 Andrew Glyn, Capitalism Unleashed: Finance, Globalization and Welfare (Oxford, 2007), p.71.

  48 Financial Crisis, p.xxiv.

  49 Ibid., p.xxiii.

  50 The Irish Times, 21 September 2007.

  51 The Irish Times, 9 February 2007.

  52 Ibid., 17 March 2007.

  53 The New York Times, 18 December 2007.

  54 The Irish Times, 15 March 2008.

  55 Ibid.

  56 Irish Independent, 16 September 2008.

  57 The Irish Times, 16 September 2008. All subsequent quotes from Casey in this paragraph are from this source.

  58 Financial Crisis, p.xvi.

  59 Irish Independent, 30 September 2008.

  60 Ibid.

  61 The Irish Times, 30 September 2008. All subsequent quotes are taken from this article.

  62 Ibid, 29 April 2008.

  63 Irish Independent, 1 October 2008.

  64 Shane Ross, The Bankers: How the Banks Brought Ireland to its Knees (London: Penguin, 2009), p.193.

  65 Ibid.

  66 Department of the Taoiseach, ‘Government Decision to Safeguard Irish Banking System’, 30 September 2008, http://www.taoiseach.gov.ie/eng/Government_Press_Office/Government_Press_Releases_2008/Government_Decision_to_Safeguard_Irish_Banking_System.html (Accessed 13 February 2011).

  67 The Irish Times, 1 October 2008.

  68 Ibid.

  69 Sunday Independent, 5 October 2008.

  70 The Irish Times, 1 October 2008.

  71 Ibid.

  72 Irish Independent, 2 October 2008.

  73 The Irish Times, 1 October 2008.

  74 Irish Independent, 1 October 2008.

  75 The Irish Times, 1 October 2008.

  76 Ibid.

  77 Ibid.

  78 Irish Independent, 1 October 2008.

  79 The Irish Times, 1 October 2008.

  80 Irish Independent, 2 October 2008.

  81 The Irish Times, 2 October 2008.

  82 Dáil Debates, 30 September 2008, Vol.662, No.1, paragraph 22.

  83 Dáil Debates, 30 September 2008, Vol.662, No.1, paragraph 44.

  84 Sunday Independent, 5 October 2008.

  85 The Irish Times, 2 October 2008. All subsequent quotes from this article are from this source.

  86 The Irish Times, 4 October 2008.

  87 Ibid., 15 October 2008.

  88 Announcement in Relation to Covered Institutions, Department of Finance press release, 28
November 2008, http://finance.gov.ie/viewdoc.asp?DocID=5553&CatID=1&StartDate=01+January+2008 (Accessed 14 February 2008).

  89 The Irish Times, 24 October 2008.

  90 Statement by the Government on the Recapitalisation of Credit Institutions, Department of Finance press release, 14 December 2008, http://www.finance.gov.ie/viewdoc.asp?DocID=5604 (Accessed 13 February 2011).

  91 Ibid.

  92 The Irish Times, 15 December 2008.

  93 The Bankers, p.207.

  94 The Irish Times, 27 December 2008.

  95 Ibid.

  96 Dáil Debates, 4 November 2009, Vol.693, No.2, paragraph 619.

  97 Irish Independent, 5 November 2009.

  98 The Irish Times, 20 January 2009.

  99 Ibid., 6 February 2009.

  100 Ibid., 19 February 2009.

  101 Ibid., 20 February 2009.

  102 Recapitalisation of Allied Irish Bank and Bank of Ireland, Department of Finance press release, 11 February 2009, http://www.finance.gov.ie/viewdoc.asp?DocID=5669&CatID=1&StartDate=01+January+2009 (Accessed 17 February 2011).

  103 The Irish Times, 10 March 2009.

  104 Ibid., 9 April 2009.

  105 Ibid.

  106 Ibid., 17 April 2009. All subsequent quotes from this article are from this source. The twenty signatories were: Karl Whelan, professor of economics, Department of Economics, UCD; John Cotter, associate professor of finance, Smurfit School, UCD; Don Bredin, senior lecturer in finance, Smurfit School, UCD; Elaine Hutson, lecturer in finance, UCD; Cal Muckley, lecturer in finance, Smurfit School, UCD; Shane Whelan, senior lecturer in actuarial studies, School of Mathematics, UCD; Kevin O’Rourke, professor of economics, TCD; Frank Barry, professor of international business and development, School of Business, TCD; Pearse Colbert, professor of accounting, School of Business, TCD; Brian Lucey, associate professor of finance, School of Business, TCD; Patrick McCabe, senior lecturer in accounting, School of Business, TCD; Alex Savic, lecturer in finance, School of Business, TCD; Constantin Gurdgiev, lecturer in finance, School of Business, TCD; Valerio Poti, lecturer in finance, DCU Business School; Jennifer Berrill, lecturer in finance, DCU Business School; Ciarán Mac an Bhaird, lecturer in finance, Fiontar, DCU; Gregory Connor, professor of finance, Department of Economics, Finance and Accounting, NUI Maynooth; Rowena Pecchenino, professor of economics, Dept of Economics, Finance and Accounting, NUI Maynooth; James Deegan, professor of economics, Kemmy School of Business, Limerick; Cormac Ó Gráda, professor of economics, UCD.

  107 Dáil Debates, 16 June 2009, Vol.684, No.5, paragraph 800.