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The then-Taoiseach Bertie Ahern at the Galway Races in 2006. Leon Farrell/Photocall Ireland

Column Did you hear the one about the developer, the banker and the politician?

Former trader Nick Leeson on bidding wars at boom-time black-tie balls… and how someone saw fit to flick the over-ride switch so the excess could continue.

POWER AND MONEY corrupts. If you needed any reminder, each and every time you read a news story about a bank, there is ample evidence.

The Mahon Tribunal has  shown that it is not only restricted to the walls of the big banks. (Though, when times were good, the number being paid for political influence was far greater than those just with influence in the corridors of finance.)

Is anybody surprised? I doubt it. We all saw it happening and turned a blind eye. I moved to Ireland at the beginning of 2003, not the pinnacle of the excess but the property boom was certainly motoring along. Every Thursday, Friday and Saturday there would be a black-tie ball in the Radisson Hotel in Galway. The must-have attendee for any charity was the long list of developers and bankers, the more the merrier and if you could land a politician or two, the developers and bankers were guaranteed to attend.

I remember a car worth €15,000 being bought for €75,000, in a charity bidding war between developers

You could count on the developers entering a bidding frenzy for the most meaningless piece of tat and you were sure to make a lot of money. I remember one notable occasion someone bidding €75,000 for a car worth €15,000, just to show that they could but more importantly to win the bidding war against the other developers.

The Mahon Tribunal tells us nothing new. In those days wherever you bumped into a developer, the banker and politician weren’t too far behind. There are many instances of them setting up companies together to profit from the influence that they could all bring to bear. It would be wrong to tar everyone with the same brush just as every banker isn’t bad but you’d regularly see the three huddled together at racecourses discussing the latest horse that they had bought and parading in front of the stands with their latest winner. So the Mahon Tribunal tells us nothing new; it just confirms what we had already seen for ourselves.

When a full report is written about the financial collapse in Ireland, the bankers and politicians will stand side by side in shouldering the blame. When charges are brought – sorry that should read if charges are brought – the bankers and politicians should stand side by side. But maybe that is why there haven’t been any charges. The murky world  of politics and banking were hand-in-glove during that period and the list of guilty parties would be numerous and quite illuminating.

Banking survives on confidence. If you think the bank is likely to go out of business, you would not deposit your money. If the elected government of a certain time were likely to prove corrupt and seek bribes for the slightest favour, you wouldn’t elect them. But both happened and we allowed it to occur, by allowing the banks to run out of control with our money and electing a government with a frightening lack of moral fibre and complete incompetence when it came to keeping the banks under control.

The financial woes that we are suffering in Ireland are not because of the investment arms of the banks. It’s not because someone was trying to speculate aggressively in some new exotic market. It is clearly as a failure within their bread and butter business; lending.

Banks have lent money for hundreds of years, it’s quite a simple business: You lend a multiple of your asset base. It is understood that there will be a minor level of default but the level of default is many times underwritten by the amount that  you charge for the service.  The math is very simple; most junior school children could complete it successfully. It is checked daily within the banks and reports are sent to the regulator and the Central Bank who look at the numbers from a slightly more macro perspective but the computations do not increase in complexity. When you start to approach the upper limits, lending is pared back because it becomes slightly more dangerous.

I asked a friend where he thought the over-ride switch was flicked. “The Galway Tent”, he said.

During the last financial crisis, which is now only very slowly improving, somebody somewhere hit the over-ride button. Not once but they kept the finger on the button for years and years. Rest assured the banks were initiating reports that detailed their lending portfolio; rest assured that these same reports were sent to the regulator and the Central Bank for their own perusal. As limits were breached, as they undoubtedly were, somebody said it was okay.

That somebody wasn’t a regulator or a central banker – they simply would not have had the authority to do so. I asked a good friend a couple of weeks ago where they thought the over-ride switch was flicked. The answer was, “The Galway Tent”. They are probably right. As bankers, politicians and developers slapped themselves on the back at the Galway races and congratulated themselves on the excesses of the previous twelve months, somebody flicked the switch and said: ‘It’ll be grand’.

Accountability for the crisis is still a long way off and I still remain sceptical that there is any real desire to bring the right people to trial. I have long believed that this is because of the shadow that is cast across many politicians from this period. In Iceland the premier faces charges of incompetence and negligence in a courtroom. In Ireland, nothing.

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    Mute King B
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    Nov 5th 2020, 2:08 PM

    2fm is a terrible station. Love a bit of Sunday night Ed Smith in on today fm but weeknight Ed is very hit and miss.
    To summarise, Irish radio is going down the pan. Same songs constantly repeated and they’re not very good songs either.

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    Mute Mary Nugent
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    Nov 5th 2020, 2:17 PM

    @King B: over paid or over played.

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    Mute Fr. Fintan Stack
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    Nov 5th 2020, 2:36 PM

    @King B: You’re right about day time radio, same rubbish on repeat. But for us slightly more mature (age wise) listeners John Creedon and John Kelly do just fine.

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    Mute King B
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    Nov 5th 2020, 4:16 PM

    @Fr. Fintan Stack: I take offence to that as I regularly listen to John Creedon.

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    Mute Fr. Fintan Stack
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    Nov 5th 2020, 5:26 PM

    @King B: Well I take offence to you being offended by being categorised as being in the same age bracket as me…. phew, time for my medication.

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    Mute Pauline Gallagher
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    Nov 5th 2020, 6:45 PM

    @King B: I detest all top 40 radio shows, same songs played 10 times a day with overly enthusiastic djs who sound like they’re on too much caffeine and Prozac or something. Tracy boring Clifford with her endless rave songs after lunch. Just depressing. I listen to Dave Fanning Saturday afternoons; the only good show 2fm has. Lyric FM has the Mystery Train with Joh Kelly and Marty in the Morning. At least its something different presented by people who actually know their music.

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    Mute King B
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    Nov 5th 2020, 7:29 PM

    @Fr. Fintan Stack: The blue pills are usually the good ones ;)

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    Mute Victor Feldman
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    Nov 6th 2020, 12:17 AM

    @Mary Nugent: listening to miriam. O’callaghan is like being trapped on a deserd island and only being able to read chick lit!

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    Mute Robert Clifford
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    Nov 5th 2020, 2:47 PM

    Miriam O’Callaghan is about as interesting as a paperweight.

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    Mute Patrick Short
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    Nov 5th 2020, 2:57 PM

    @Robert Clifford: yet her ratings are way up. Your brains are packed into a paperweight

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    Mute ed w
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    Nov 5th 2020, 3:40 PM

    @Patrick Short: pretty unbelievable. could there be challenge to the numbers ? I cant understand how anyone can listen to her on radio or tv.

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    Mute Fr. Fintan Stack
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    Nov 5th 2020, 3:44 PM

    @ed w: I cant understand why 22 people chase around after a ball for 90 minutes but there you go, everyone to their own.

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    Mute Margaret Deacon
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    Nov 5th 2020, 4:49 PM

    @Patrick Short: she has good guests it’s a pity she is so full of her own agenda that she doesn’t listen to them instead of repeating the same questions

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    Mute Pauline Gallagher
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    Nov 5th 2020, 6:47 PM

    @Robert Clifford: She really annoyed me one day – she was interviewing someone who happened to be adapted as his mother left him as a baby and she went on and on and ON about it when there were other things for him to talk about, i forget if he was an author or a musician, but it really annoyed me. She just wouldnt drop it.

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    Mute Victor Feldman
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    Nov 6th 2020, 12:10 AM

    @Patrick Short: she appeals to elderly women.
    She a chronic poseur.. At best she’s like marmite.. She always looks a bit out of her depth.
    ..

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    Mute Victor Feldman
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    Nov 6th 2020, 12:20 AM

    @Patrick Short: such a wannabe! Totally out of her depth.

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    Mute John Thebomb Macken
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    Nov 5th 2020, 2:38 PM

    Bring back George Hook

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    Mute Full Circle
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    Nov 5th 2020, 2:23 PM

    There’s too many ads on Irish radio nowadays unfortunately. Also as soon as I hear a D4 accent I just change it over. Some other stations have great presenters/shows but they seem to be on late at night. Example being Room 104 on fm104

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    Mute Peter
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    Nov 5th 2020, 3:03 PM

    @Full Circle:

    Yeah I’d listen them more if they’re on a different slot. I also like that it’s a man and woman, too.

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    Mute sean sheahan
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    Nov 5th 2020, 2:56 PM

    I used to listen to 2fm when Breakfast Republic was on with Bernard,Keith and Jenny. But its just not the same anymore.
    Also 2fm changing Alan Cawley and Hugh Cahill from Game On was not a good move. Game On is not as good as it was in my opinion.

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    Mute Simon Connolly
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    Nov 5th 2020, 3:08 PM

    @sean sheahan: Doubly agree…cannot listen to Eoghan McDermott’s voice..the most overhyped and talentless presenter on the radio!!

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    Mute Shane Gill
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    Nov 5th 2020, 5:27 PM

    @Simon Connolly: Spot on. Doireann is just about bearable at a push but Eoghan is really awful. The most annoying ginit on the radio

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    Nov 6th 2020, 9:21 AM

    @Shane Gill: Don’t listen to them often but when I do you can nearly hear her cringing at some of the tripe yer man comes out with. I don’t think she is that into all the silly crap but goes along with it as its her job. The other fella shop be sedated before going on, might achieve a normal level happy then.

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    Mute Martin Byrne
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    Nov 5th 2020, 3:11 PM

    2FM is awful. Inane vacuous drivel for hours on end. Their dance stuff on Saturday evenings was good but their daytime effort is just not working.

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    Mute Tom Harpur Photography
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    Nov 5th 2020, 2:21 PM

    Haven’t listened to 2fm in ages until the mrs turned it what a load of rubbish each to there own. I prefer pat kenny in the morning on Newstalk and did prefer Ciara Kelly after pat not fond on Andrea Undecided on The Hard Shoulder at the weekends I’d listen to Brendan o Connor

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    Mute Sean Walsh
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    Nov 5th 2020, 5:10 PM

    2fm is a disaster. It should be scrapped and its frequency used to put RTE Gold on fm.

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    Mute Michael
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    Nov 5th 2020, 8:45 PM

    @Sean Walsh: Absolutely! Great idea! Start a petition!

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    Mute Barry
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    Nov 5th 2020, 2:45 PM

    2fm is awful, even their so called comedy is a ripp off from gift grub on todayfm.

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    Mute Terry Fagan VO
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    Nov 5th 2020, 3:30 PM

    NOVA all the way.

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    Mute Eamonn Tierney
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    Nov 5th 2020, 3:25 PM

    Made a mistake and turned into 2 FM recently around 8pm could believe the language of what was played and won’t repeat it

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    Mute John Kenny
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    Nov 5th 2020, 3:38 PM

    Listen to Iano in morning now that Ciara Kelly has come on board Newstalk breakfast show. Thought The 2 lads were Brill. Then Back to Rte radio 1 Tubridy.
    Dermot and Dave 10 to 12pm. Back to RTe Ronan Collins for good sounds.
    2 pm Sean Moncreif. 4pm Ray Darcy and then 4.30 between Newstalk, Today Fm and Rte Radio 1 with Sara Mcinernry and Fiacra which is really a turn around and now a good show.A lot lighter than Mary Wilson.
    Then Off the ball, 7pm and 8pm between Rte Radio 1 / Today Fm music and Kelly Lyric fm.
    Wow mad day.

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    Mute Justin Hanley
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    Nov 5th 2020, 2:27 PM

    John Healy Ducked up 2fm after Gerry Ryan . Back then colm Hayes took over Ferry Ryan’s slot and everything was great till that S A P decided to change everything. Since then 2fm is crap and been down listener’s over the years

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    Mute Emer Caffrey
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    Nov 5th 2020, 5:00 PM

    2fm is done. I’ve attempted to listen in, it hurt my ears, the forced laughter and drivel, most disappointing of all is the utter disrespect shown to serious topics. Gerry Ryan RIP

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    Mute Batster
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    Nov 5th 2020, 6:23 PM

    No mention of Mairead Ronan show on Today FM, no surprise as it’s bloody awful

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    Mute Peter
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    Nov 5th 2020, 3:07 PM

    If I’ve the radio on all day..

    Classic Hits 4FM
    Dublin Talks 98FM
    Niall boylan Classic Hits 4FM
    Live Live on RTÉ Radio 1
    Ray D’Arcy RTÉ Radio 1
    I leave it on RTÉ Radio 1 until about 7pm
    Then start listening to Q102 until 9pm if Niall Boylan’s back that evening. But if not I’ll listen to FM104’s Room 104 I think it’s called.

    Odd time I’d listen to parts of News Talk during evening rush hour.

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    Mute Michael
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    Nov 5th 2020, 8:46 PM

    @Peter: BBC Radio 2 all the way!

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    Mute Claire Voigt
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    Nov 5th 2020, 6:37 PM

    2fm has gotten dreadful. They moved Eoghan McDermot to the mornings and totally dumbed his input down. I thought his mix of entertainment, music, and intelligent current affairs was brilliant. Keith Walsh was given bit parts around RTE, when his show was doing brilliantly against TodayFm. I listened to Jennifer Zamparelli last week, or maybe the week before, say that everyone steals from shops when they’re young, therefore it’s ok. I can’t listen to 2fm anymore, I’m just so disappointed with the standard of it’s presenters.

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    Mute Fran O'Keeffe
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    Nov 5th 2020, 6:31 PM

    2fm close it so called dj terrible long long time since I listened to it waist of money.

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    Mute Paul Cunningham
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    Nov 5th 2020, 4:10 PM

    I listen to music through YouTube, and what I am finding interesting is the sheer amount of ads on it now. There are 4 ads every 2 songs, so I am just throwing on the radio and letting random chance dictate the music instead. At least it tends to be 5 songs before ad breaks there.

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    Mute Brian Dunne
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    Nov 5th 2020, 6:06 PM

    @Paul Cunningham: try spotify Paul. Play all the music you like add free and all the podcasts you want. All for a tenner a month

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    Mute Michael
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    Nov 5th 2020, 8:48 PM

    @Brian Dunne: Try BBC Radio 2 on smart speaker, add free!

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    Mute Jamo
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    Nov 5th 2020, 4:44 PM

    Ian Dempsey today fm 7-9 Lucy Kennedy and Colm Radio Nova 9-10 Nova then for the rest of the day. Tuned into 2fm on Saturday and one of the presenters was talking about being a feminist so I switched it off straight away.

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    Mute M
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    Nov 5th 2020, 7:01 PM

    Perhaps it was the listeners were in that category as people were vulnerable to propaganda during this year.

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    Mute Niall O'Malley
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    Nov 6th 2020, 8:05 AM

    It would be good if we had a decent music program and DJ in this country. There has been nothing done in recent years to promote small and independent band’s and music, those that fund and produce their own music independent of major labels. Now more than ever we need music an encouragemt of the arts in all forms on all broadcast mediums.

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    Mute Brian Kelly
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    Nov 7th 2020, 12:17 PM

    2FM was great at the start. The presenters in the morning are absolutely dreadful. Tracy Clifford has a great music show, but I also find there is far to many female presenters on 2FM all day long. Where are the male DJs? Dan Healy should be sacked. Eoin Mc Dermot dreadful also.

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    Mute Padraig Dolan
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    Nov 5th 2020, 6:22 PM

    Who believes these figures???? Most people under 40 never listen to radio or watch television…..their information is gleaned from social media and not radio or television….im 66 and very seldom watch rte or bbc as i stream most things and i doubt if im alone in my changing habits…..

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