McAleese and ECB worried about legality of hastily assembled Bank Bill

It seems the Credit Institutions (Stabilisation) Bill is in trouble. Not only does the President think it could be constitutionally questionable, the ECB is expressing the same concern. The key clause is in section 53 of the bill:

The provisions of this Act, and any order made under this Act, have effect notwithstanding anything in—

(a) the Companies Acts, the Building Societies Act 1989, the Credit Union Act 1997 or any other enactment,
(b) any other rule of law or equity,
(c) any code of practice made under an enactment,
(d) the listing rules of any regulated market or the rules of any other market on which the shares of a relevant institution may be traded from time to time,
(e) the memorandum of association and articles of association of a relevant institution, or
(f) any agreement to which such an institution or any of its subsidiaries is a party, is bound by, or has an interest in, except to any extent to which this Act expressly provides otherwise.

Objectors claim that the Minister will be granted powers which have legislative strength actions that must be bound by those laws which govern the market and banking, but not the Oireachtas. That’s what President Mary McAleese’s Council of State must adjudicate on tomorrow.

So why does the bill matter? Well, this legislation gives the government power to make demands on those Irish banks that have refused to reveal to the minister their true financial state. It is therefore a critical piece of legislation which in its intention at least could have won overwhelming support in both houses of the Oireachtas.

In last Thursday’s Late Debate Joe Costello of Labour was first to raise the possibility that the government’s guillotining of the bill in the Dail after only a few hours has given it little opportunity to compliance test it.

In fact the opposition (which would normally be given a week to review such legislation, and then another week after the initial debate to suggest amendments) was barely given sight of the draft bill before it entered the house and a government guillotine ensured it cleared all stages in just five hours.

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  • Itwas SammyMcNally whatdoneit

    If the Government own the dodgy banks not sure how they can conceal stuff from their major shareholder.

  • Alias

    It should show the utter folly of the state underwriting the debts eurosystem banks without knowing the extent of the bad debts that they would be assuming and without any mechanism by which they could ascertain that extent.

    Of course, the minister could have made voluntary disclosure a condition of the blanket guarantee but if he did that then he would have had to reveal the true extent of the bad debts to the Irish people and that would have made it impossible for him to get them on the hook for these eurosystem debts by lying to them that the problem was merely liquidity and that there would be no losses atall atall…

    And yet the person who told Mr Lenihan to bail-out the eurosystem , Jean-Claude Trichet of the ECB, knew that the losses would be so extensive that they could bring down the eurosystem.

  • Alias

    The problem with this bill as far the rabid europhiles are concerned is that it attempts to assert the national interest over the EU’s interest in ascertaining information pertinent to the national interest that is only available to the ECB via its executive control of the Irish Central Bank.

    The ECB knows how bad the losses are because it can acquire this information through the Irish Central Bank under the Maastricht Treaty whereas the government is not entitled to it under the same. That is how the ECB knew that the losses would be of such as scale as to collapse the eurosystem if they were not contained in the borrowing state under a blanket guarantee scheme, and it is why the government did to know, and still do not know, just how much debts that the ECB has tricked them into underwriting.

    The ECB has legal title to circa 186 billion worth of bank assets as collateral for the loans it has advanced to the Central Bank to prop-up the eurosystem via the marginal lending facility. This locks the state into the EuroZone because if it defaulted on the debts that the ECB ran up at the Central Bank then its banks would lose their prime assets. And given that the Maastricht Treaty is now part of the Constitution, any act by the government that seeks to promote the interests of the Irish people above the interests of the EU in contravention of the provisions of the treaty is unconstitutional.


    Sovereignty is simply the power to act according to your own interests. If you give that power to others, then they use that sovereignty to act in their interests, not yours.

    A good practical example of this is the transfer of sovereignty over the Irish Central Bank to the ECB, and it is also a good practical example why it is idiotic to give power away to foreign interests.

    The Irish Central Bank is now required to “act in accordance with the guidelines and instructions of the ECB” and to “support the general economic policies” of the EU “in order to contribute to the achievement of the [EU’s] objectives.” In other words, in is required to promote the EU’s interest and not the interests of the Irish people.

    The ECB has used this transfer of sovereignty to it to increase Ireland’s sovereign debt by 186 billion euros by the simple expedient of lending this money to the Irish Central Bank who in turn loaned it to eurosystem banks in Ireland who in turn used it to repay debts to banks elsewhere in the eurosystem.

    However, these eurosystem banks in Ireland are bankrupt and are not in any position to repay the 186 billion euros that the ECB has indirectly loaned to them. Since the Irish Central Bank is a state-owned institution (the Minister for Finance is its sole shareholder), it is the Irish taxpayers who will have to repay this additional 186 billion euros when the eurosystem banks duly default to the Irish Central Bank.

    The Irish gave the ECB executive control of the Irish Central Bank but retained responsibility for how the ECB exercised that executive control. Indeed, the unmitigated idiots even declared that it should be unconstitutional for them to object to how the ECB used that executive control of their finances: “”When exercising the powers and carrying out the tasks and duties conferred upon them by the Treaties and the Statute of the ESCB and of the ECB, neither the European Central Bank, nor a national central bank, nor any member of their decision-making bodies shall seek or take instructions from Union institutions, bodies, offices or agencies, from any government of a Member State or from any other body.”

    That is an extra 186 billion euros of debt that Irish taxpayers will have to repay simply because they gave the sovereignty to the ECB to increase their sovereign debts without their consent and to do so in order to promote “the [EU’s] objectives.”

    Had the Irish understood what sovereignty means, they would not have been foolish enough to have allowed quislings to hoodwink them into giving it away and, ergo, would not have this additional debt to repay.

    That has nothing to do with ‘globalisation’ or ‘Illuminati’ or ‘New World Order’ et al – it is simply a bunch of idiots who gave their sovereignty away and must now suffer the consequences of their folly.

  • Alias

    The problem with not reading the Maastricht Treaty or the amendment that added it to the Irish Constitution before ratifying is that the amendment contained a clause giving the provisions of the treaty supremacy over the Constitution:

    “No provision of this Constitution invalidates laws enacted, acts done or measures adopted by the State which are necessitated by the obligations of membership of the European Union or of the Communities, or prevents laws enacted, acts done or measures adopted by the European Union or by the Communities or by institutions thereof, or by bodies competent under the Treaties establishing the Communities, from having the force of law in the State.

    That is a declaration of supremacy of the obligations and objectives set out in the Maastricht Treaty over the laws and policies of the government of this state. Therefore, the State must abide by what is declared in that treaty and must abide by the decisions and policies of the EU’s institutions or it could be held to be acting unconstitutionally and ergo any law or policy that conflicts with the former would have no legal effect in the state.

    What we are now seeing is the rabid europhile political class and the ECB acting to protect and promote the interests of the EU over and above interests of the Irish people in regard to preventing any law coming into effect in this state that seeks to promote the national interest at the direct expense of the EU’s interest.

    So the ECB is determined to retain its executive control of the Central Bank and of all functions performed by that institution and is determined to prevent the state from regaining any control of those functions or qualifying them in any way that would promote the interests of the state or restrict the influence of the ECB.

    The ECB has control of the Irish Central Bank and has used that control to add 186 billion to the Irish state’s sovereign debt which was used to prop up the eurosystem by serving as debt repayment to bondholders elsewhere within it but it has no responsibility for how its abuses that control. That is like the Coca Cola company entering into a legal arrangement to give Pepsi full control of its overdraft facility to run up debts for Pepsi’s use that Coca Cola company would be responsible for repaying. Naturally Pepsi has no intention of giving up its privilege and will try to stop the Coca Cola company from acting to promote its own interest when it discovers that Pepsi has run up huge debts for goods and services that offer no benefit to it.

    Even though the Maastricht Treaty has proved to be the most costly mistake in the history of the state, the state is now forced by its own constitution to complete the process of destroying itself.

  • Thanks for those three very clear posts, Alias.

    The enemy is within the walls in a Trojan horse, and can now sack/rape and pillage the citizens at will. Not the Irish’s finest hour, eh, to worship the false god promising saviour with fools’ gold?

  • “Those who create and issue money and credit direct the policies of government and hold in the hollow of their hands the destiny of the people.” – Reginald McKenna

    Amen. How about Biffo and the boys ask the ECB for the policies the people must follow to sustainable wealth and growth/solvency.

    Methinks that would put the Money Bags on the spot and out them as being wannabe emperors without any clothes, and without a baldy notion about anything other than creating crippling and enslaving debt to invented paper currency, allowing for foreclosure on defaults which nicely deliver to them valuable expensive assets and prime properties which have been pledged/demanded as collateral. It’s a really nice, sweet scam, but it works best whenever no one knows about it, so the sensible thing is to tell everyone about it …… or end up as paupers and slaves to …. well, what would one call such sharp operators?