mandate training feb 2014: ireland and the world of finance

Mandate Training Dublin18 February 2014

Finance and Ireland

Dr. Conor McCabeUCD School of Social Justice

[Lehman collapse, 15 September 2008 - headlines 16 Sep 2008]

Closing down of Dissent - Attacks on Equality in IrelandEquality Bodies – closed down or with reduced Budgets

Combat Poverty Agency –closed 2008 incorporated into the Department of Social Protection Equality Authority – 2009 43% cut and now being merged with the Human Rights Commission Women’s Health Council – closed 2009  Crisis Pregnancy Agency – closed and merged with the Health Service Executive  Irish Human Rights Commission -Budget cuts since 2009 and merged with Equality Authority Equality for Women Measure - co-funded by EU Operational Programme ---budget partly transferred out of

this area and now under Dept. For Enterprise, Trade and Employment  National Consultative Committee on Racism and Interculturalism (NCCRI) _Closed 2009  Gender Equality desk at the Department (Ministry) of Justice, Equality and Law Reform – Desk Closed 2009 Gender Equality Unit – Department of Education – Closed early 2000s Higher Education Equality Unit – UCC -Closed and merged into Higher Education Authority (early 2000s) National Women’s Council of Ireland -158 member organisations- budget cuts of 15% in 2008-11 and 38% in

2012 Traveller Education cutbacks 2011 and 2012 – all 42 Visiting teaches for Travellers removed*  Rape Crisis Network Ireland – core Health Authority Funding removed 2011

SAFE Ireland network of Women’s’ Refuges - core Health Authority Funding removed 2011

People With Disabilities in Ireland's (PWDI) - funding removed 2012

National Carers’ Strategy – abandoned 2009

Kathleen Lynch, Equality Studies UCD School of Social Justice 13

Long Term Refinancing Operations (LTRO)

21 December 2011: €489.2 billion to 523 banks – 3yrs @ 1 per cent

29 February 2012: €529.5 billion to 800 banks – 3yrs @ 1 per cent

Long Term Refinancing Operations (LTRO)

21 December 2011: €489.2 billion to 523 banks – 3yrs @ 1 per cent

29 February 2012: €529.5 billion to 800 banks – 3yrs @ 1 per cent

“Some banks, particularly in Spain and Italy, used portions of those funds to buy higher-yielding bonds issued by their governments at a time when most investors remained skittish, and it helped reduce government borrowing costs.

But many banks primarily used the funds to pay down maturing debts or simply deposited the money at other banks or with the ECB itself, even though they yield less. The infusion fell short of some politicians' hope that it would stimulate bank lending to customers in struggling European economies.”

Wall Street Journal, 1 March 2012

Over the last quarter of a century something fundamental seems to have changed in the way in which capitalism works.

The tendency since 1970 has been towards greater geographical mobility of capital.

Rather than being a modest helper to the capital accumulation process, [finance] gradually turned into a driving force.

Speculative finance became a kind of secondary engine for growth given the weakness in the primary engine, productive investment.

“Part of the reason people get less giddy about the Dow than they did five years ago is that they have learnt a bit about inequality.

what looks like a recovery, a rally or an increase in consumer confidence may just be the effect of elites passing money among themselves.“

Christopher Caldwell, FT 9 March 2013

One company – 200 employees

One employee– 200 companies

Irish Executives in the six lenders must have been rubbing their hands with glee as the State-sponsored €400 billion insurance policy covers commercial, institutional and interbank deposits, and investors who have bought some of their debt.

The State guarantee allows the six lenders to borrow more freely and more cheaply for short-term funding that had become scarce due to the global credit crunch.

Mr. Lenihan said on Tuesday that the increase on the cap on deposit guarantees up to €100,000 from €20,000 last month covered 97 per cent of customer deposits so the guarantee has clearly been included for the benefit of the banks rather than the savers…

“Denis Casey, chief executive of Irish Life and Permanent, said the guarantee would allow Permanent TSB and the other Irish banks covered to borrow more cheaply.

“The oxygen supply for Irish banks was being cut off and healthy banks were starting to gasp for breath. This guarantee turns on the oxygen supply.”