Brendan Burgess
Founder
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Do we know how much the Davy's Partnership paid for the bonds?
Do we know how much profit they made?
Did they have to compensate the client with a €2m payment?
The bonds were sold for 20.25 cent in the euro, realising €5.58 million. ........Kearney claimed in his legal action that the price secured significantly undervalued the bonds. While his case was settled in early 2016 – for a figure understood to be between €2 million and €3 million – the Central Bank was only getting started.
And then pay a €4m fine.
I wonder if they still cleared a profit on the transaction?
A spokesman for Davy declined to comment on the size of the settlement or whether it was borne by the firm or the consortium of 16. He also declined to say whether the €4.1 million fine in the firm would ultimately be recouped from individuals or if any of them have been – or will be – sanctioned.
The bonds were sold for 20.25 cent in the euro, realising €5.58 million. ........Kearney claimed in his legal action that the price secured significantly undervalued the bonds. While his case was settled in early 2016 – for a figure understood to be between €2 million and €3 million – the Central Bank was only getting started.
But the fine was against Davy, the company. The profit on the transaction was made by individuals. I would presume Davy also paid the court settlement.That doesn't answer my question exactly.
But is it something like the following?
Davy's paid Kearney €5.6m at 20 cents in the euro.
They sold them for 30 cents in the euro, so the selling price was €8.4
So they made a profit of about €3m on the transaction.
They settled for between €2m and €3m , so that probably accounted for the entire profit that they had made.
So the overall loss was the €4m fine.
Brendan
The fact that there is so much management ownership of the place makes this very hard to untangle.They settled for between €2m and €3m , so that probably accounted for the entire profit that they had made.
However, it's quite possible that the Central Bank has let the staff involved know that they will not be approved for any further senior positions.
Brendan
But the fine was against Davy, the company. The profit on the transaction was made by individuals. I would presume Davy also paid the court settlement.
Which beggars the question, did the individuals get to keep their profits and get Davy's to pay any fines and settlements as a result of their actions?
Germany has a financial regulator (BaFin) which is completely separate to its central bank. Wirecard still happened.The Central Bank itself has become a fangless wolf as regards regulation due to its primary role in stabilizing the economy and assuring liquidity and solvency to the principal components of the financial system.
Apparently this is correct. The company paid the fines and settlement and the individual's kept the profit. Nice work if you can get it.But the fine was against Davy, the company. The profit on the transaction was made by individuals. I would presume Davy also paid the court settlement.
Which beggars the question, did the individuals get to keep their profits and get Davy's to pay any fines and settlements as a result of their actions?
While good to see, they've only left because the story has now hit the headlines."Three senior Davy figures have resigned from the financial services firm days after the Central Bank issued it with a €4.13m fine.
CEO Brian McKiernan, deputy chairman Kyran McLaughlin and head of bonds Barry Nangle will leave the company immediately"
Www.independent.ie/business/three-senior-figures-resign-from-davy-after-central-bank-41m-fine-40165544.html
Germany has a financial regulator (BaFin) which is completely separate to its central bank. Wirecard still happened.
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