FREE KIC - NO. 74 JANUARY 12
Gary Keogh hit the news headlines in 2009 and 2011 when he threw eggs at the AIB and Bank of Ireland annual general meetings. He managed to hit AIB Chairman Dermot Gleeson but the other board members escaped the wrath of the disgruntled shareholder.
I now find myself at a point where I want to see Gary throw some eggs at some new targets (I’m too much of a coward to do it myself!) but the only problem is that I’m not quite sure exactly who those targets should be because it appears to be quite a long list.
The Office of the Director of Corporate Enforcement (ODCE) and the Garda Fraud Squad are involved in the investigation and they were in court last week looking for more time to complete their work. The Judge rightly pointed out that the last time they looked for more time they said that they were almost finished and yet here they were months later looking for more time. The justification for the delay was put down to certain witnesses being uncooperative. At this stage this excuse is just beginning to sound ridiculous. How many years does it take to work out whom did what and when? How many times do they need to interview Sean Fitzpatrick and Willie McAteer?
The cynic within me wonders whether there is a reason for the slow progress and there are plenty of other cynical people out there willing to speculate as to what is really going on.
Mr Casey said the transaction arose from a request by the chief executive of the regulator, Pat Neary, and Central Bank governor John Hurley who had asked ILP to participate in a "green jersey" agendaI remember listening to the Anglo Irish Bank results announcement in December 2008 and the way they were able to say that deposits had slightly increased from the previous results was definitely designed to portray a picture of stability. The fact that these deposits were artificially inflated by over €7bn was a blatant misrepresentation of the truth. If that does not breach the law well then my faith in the law is severely diminished.
Here is an excerpt from that Anglo preliminary results announcement in relation to deposits:
Getting the facts out in the open will at least allow everybody to see the type of culture that existed at the time. (Whether that culture has changed is a debate to be had another day).
It is interesting to contrast the Irish situation with the United States. I have read a number of articles making this comparison and it is therefore ironic that while writing this piece I noticed an article on the CNBC website that included the following:
US authorities are preparing to charge four former Credit Suisse employees with criminal and civil fraud related to write-downs on subprime mortgage derivatives at the height of the financial crisis, sources familiar with the matter saidI also noticed the following on another website:
In December, former CEO Jon Corzine testified before Congress that he had been assured by MF Global's back-office staff that a questionable $200 million fund transfer had been properly executed. Edith O'Brien, an assistant treasurer at MF Global, disputed Corzine's testimony and is seeking immunity from prosecution in exchange for her cooperation. With MF Global's former chief risk officer scheduled to testify before Congress on Thursday and the investigative noose tightening, it appears likely that the responsible parties ultimately will be brought to justice.These articles were like rubbing salt into a wound because once more it highlighted how slow things are progressing here.............does anyone have a phone number for Gary "egg thrower" Keogh!
Disappointed as I am at the result I believe that a performance track record should be at least five years before any sort of assessment can be made. Given that 2012 will be the fifth year of the journey I look forward to this time next year when I hope to report back with a track record that will have added some value. (Ironically January 12 has turned out to be the best month ever for the portfolio on an absolute and relative basis)