Started moving all my files from home to UCD. Today it was the folders with material relating to IFSC, money and finance in Ireland. Just down from the office is a printer that also scans documents so i’m hoping to put up as much as I possibly can of the primary and secondary material that I come across. today it’s a selection of articles from Finance Dublin, 1988. This was the first year of finance Dublin and almost from day one the financialisation of the Irish economy is plain to see - that is, plain to see with eyes to see. Every time I hear Peter Matthews TD harking on about the halcyon days of Irish banking I can’t help but think he was chloroformed in 1968 and only came out of it when the crisis began to hit.
These scanned pages are intended as an aid to research into the world of finance in Ireland. I’m going to try to post as much of the primary and secondary source material I come across as I can. The purpose here is purely educational.
Some quotes, just to give a sense of the articles below.
First, from Ray Douglas, group general manager, Treasury, of Allied Irish Banks, talking about Dublin’s biggest dealing room (January 1988, pp.37-38):
The commissioning of our new 80-position dealing room is Bankcentre is only the latest step in a long association between Allied Irish Bank and the global financial markets. In the mid-1970s AIB identified the emerging global financial markets as a major business opportunity for the bank… Our objective is to make AIB a significant niche player in the markets, trading on our own account, providing liquidity to the markets and acting as market maker in some specific areas…
During the 1980s the emergence of the new global financial markets in securities and in off-balance sheet instruments such as SWAPS* and FRAs** has provided a further range of opportunities for AIB.
Ireland had been hot-wired into the world of swaps, derivatives and other off-balance sheet activities for at least twenty years before the crash of 2008. This was no ‘bad apple’ scenario.
The Feb 1988 issue has a handy guide to pricing options and their reliance on the Black-Scholes Model.
Over the past fifteen years there has been phenomenal worldwide growth in the popularity of options. This trend has been manifested in Ireland by the proposed opening of organised trading exchanges.
March 1988 has an article on indigenous Irish financial engineering:
The latest, and hottest, piece of financial engineering in Ireland resolves around the Business Expansion Scheme (BES). It is popular, too, for there is a last minute rush of funds into the scheme, aiming to beat the April 5th deadline, which is the cut off date for the applicability of personal tax relief, which is by and large the main basis of the current excitement about BES schemes.
BES schemes, allowing personal investors up to £25,000 each in tax relief on investments have been sprouting up all over in the past two months - marketed by fund management companies, stockbrokers, and indeed, private companies aiming to increase their capital.
The same month saw the establishment of Ireland’s first futures and options exchange - again marking the continuing financialization of the Irish economy.
A private placing for the new Irish Futures and Options Exchange (IFOX) takes place this month, setting the scene for the emergence of a new dimension in Ireland’s money and capital markets with the start up of the Exchange scheduled for mid year.
Thus Ireland will join the growing number of European countries who have developed domestic futures and options exchanges as facilities to manage risk.
The PDF of the articles for 1988 - thirty-eight pages in total - is here: