What is truth?

Archive for February, 2010

Guidance for the treatment of impaired assets in the EU banking sector

IP/08/1495), where the Commission set out the principles governing the application of the State aid rules to any support measure for banks in the context of the global financial crisis. In a similar vein that the recapitalisation communication (see IP/08/1901) detailed the application of the general principles to recapitalisation of banks, the present communication sets out principles that must be followed by any asset relief measure.

The European Commission has provided guidance on the treatment of asset relief measures by Member States. Impaired assets correspond to categories of assets on which banks are likely to incur losses (e.g. US sub-prime mortgage backed securities). The Commission considers that a common European approach is presently needed to deal with the treatment of impaired assets, to make sure that foreseeable losses are disclosed and properly handled and banks can use their capital to resume their normal function of lending to the economy instead of fearing they would need this capital to cushion against possible losses. The Commission’s Communication outlines various methods to deal with impaired assets, notably through asset purchase (including bad bank scenarios) or asset insurance schemes. It explains the budgetary and regulatory implications of asset relief measures and presents details concerning the application of the State aid rules to such measures. In particular, the guidance provides methodologies concerning the valuation of the impaired assets, the necessary remuneration of the State for the asset relief and the procedural steps that will be followed as well as the criteria that will be used to evaluate the State aid given to the banks as a result.

Competition Commissioner Neelie Kroes said: “We have already taken important steps towards financial stability through bank rescues and recapitalisation. Now, we need transparency, disclosure and correct valuation of impaired assets in order to clean the balance sheets of banks and address the root cause of lack of confidence. But we also require that the banks contribute adequately to the costs. They may have to be restructured in exchange for the State aid they receive. The Commission can play a key role through coordinated and rapid action, and thus contribute to restart lending.”

“We have taken, since last October, a series of measures that have stabilised financial markets, but the job will only be complete if companies and households continue to have access to credit, the lifeblood of economic activity. Dealing with impaired assets is crucial to achieve this, to restore confidence and to guarantee a gradual recovery of the economy,” said Economic and Monetary Affairs Commissioner Joaquín Almunia.

Internal market and services Commissioner Charlie McCreevy said: “These guidelines will help Member States deal with impaired assets on bank’s balance sheets. If we don’t face up to this issue then we risk prolonging this crisis with zombie banks that are incapable of performing a useful role in our economies.”

The Communication takes account of the recommendations of the European Central Bank and takes into account the extensive discussions with Member States over the last two months on the appropriate way to deal with impaired assets. It addresses the rationale for asset relief as a measure to safeguard financial stability and underpin bank lending; the longer-term considerations of banking-sector viability and budgetary sustainability to be taken into account when considering asset relief measures; and the need for a common and co-ordinated EU approach to asset relief, notably to ensure a level playing field.

The guidance for the application of the State aid rules is based on a number of principles:

  • full transparency and disclosure of impairments, which has to be done prior to government intervention;
  • coordinated approach to the identification of assets eligible for asset relief measures through development of eligible categories of assets (“baskets”);
  • coordinated approach to valuation of assets ex-ante, based on common principles such as valuation based on real economic value (rather than market value), implemented by independent experts and certified by bank supervisors,
  • validation by the Commission of the valuation of the assets, in the framework of the State aid procedures on the basis of uniform assessment criteria;
  • adequate burden-sharing of the costs related to impaired asset between the shareholders, the creditors and the State,
  • adequate remuneration for the State, at least equivalent to the remuneration of State capital
  • coverage of the losses incurred from the valuation of the assets at real-economic-value by the bank benefiting from the scheme
  • aligning incentives for banks to participate in asset relief with public policy objectives, through an enrolment window limited to six months during which the banks would be able to come forward with impaired assets;
  • management of assets subject to relief so as to avoid conflicts of interests;
  • appropriate restructuring including measures to remedy competition distortion, following a case by case assessment and taking into account the total aid received through recapitalisation, guarantees or asset relief, with a view to the long-term viability and normal functioning of the European banking industry.

The design of the asset relief scheme, be it asset purchase, insurance, swap, guarantee or hybrid models, is the responsibility of the Member State. Their treatment from the State aid point of view will however be subject to uniform assessment criteria, which should maintain a level playing field. The Commission approval for asset relief measures will be granted for a period of six months, and conditional on the commitment to present details of the valuation of the impaired assets, as well as an viability assessment and restructuring plan for each beneficiary institution within 3 months from its accession to the asset relief programme.

The Communication complements and refines the Banking Communication (see

The Communication is available on Europa:


Under “Financial sector: application of State aid rules to measures taken in the context of the current global financial crisis”.

Sunday Blues


Reading the Sunday newspapers to –day, I don t know which is more depressing

The prospect of having the opposition takes the place of the current bag of misfits in the Dail

I mean they haven’t really distinguished themselves and I am not so sure of their solutions to the whole NAMA Con job.

Their proposals are exactly what???

The Government seems to be trying to control the content of our main stream newspapers by touting the cabinets possible re- shuffle in the coming weeks and are deflecting away  from more inportant thing like NAMA

I know I should say shuffling the chairs on the titanic but you all know that is the case already don’t you!

  Anyway the good news this week was that the European Commissions latest’s utterances on the subject NAMA , looks like  it would save us from our own corrupt governments attempt to defrauded every man woman and child living in the state with is attempt to overpay bankrupt banks billions for worthless toxic assets ! 

Ah well,

 David Mc Williams article will clarify things a little better no doubt but it won’t cheer me up though!

link to David’s article http://www.davidmcwilliams.ie/2010/02/28/it-took-europe-to-rein-in-nama


Banks await loan acquisition schedules

Nama has missed three deadlines as lenders and the agency struggle with complex valuations, according to


source http://www.irishtimes.com/newspaper/finance/2010/0227/1224265277431.html

NOW THAT the valuationshas signed off on the National Asset Management Agency (Nama), the delayed task of transferring the top 10 developers and loans of €17 billion can proceed.

The green light from Brussels allows Nama to start buying loans with a face value of about €80 billion from five guaranteed lenders for an estimated €54 billion, though both figures could change.

Preparatory work has so far proceeded slowly with the amount of paperwork connected to the top borrowers creating a bottleneck of information within Nama that its small staff and army of outside contractors are busy trying to process.

Preliminary work has been slow as the lenders, and Nama, have struggled to deal with complex valuations in a market with no buyers, and grappled with tricky legal and financial due diligence on title and loan files, with dedicated teams of staff in each lender.

Nama has missed three deadlines to process the transfers, the most recent being yesterday.

March 5th has been set as the next deadline when the first transfers will begin, though not all of the loans connected to the top 10 will move on the day. Minister for Finance Brian Lenihan has said the top 10 borrowers will be transferred by the end of next month.

As revealed first by The Irish Times last week, they are developers Liam Carroll, Bernard McNamara, Seán Mulryan of Ballymore, property financier Derek Quinlan, Joe O’Reilly, the developer behind the Dundrum Shopping Centre in Dublin; Paddy McKillen, owner of the Jervis Street Shopping Centre in Dublin; Treasury Holdings (which is owned by Johnny Ronan and Richard Barrett); Cork developer Michael O’Flynn; Dublin builder Gerry Gannon, co-owner of the K Club golf resort in Co Kildare; and Galway businessman Gerry Barrett, owner of Ashford Castle in Co Mayo and G Hotel in Galway.

The financial institutions are awaiting acquisition schedules outlining the specific loans that Nama will acquire as well as the crucial “haircut” to be applied to each.

Once known, this will allow the banks to assess the losses to be incurred on the discounted sales, which will trigger a requirement for capital to meet the shortfall.

State-owned Anglo Irish Bank faces the most pressing capital need as it is moving the largest amount in the first wave – close to €10 billion of the €30-€35 billion it will eventually transfer.

Allied Irish Banks is moving more than €3 billion in the first wave, Bank of Ireland over €2 billion, Irish Nationwide just shy of €1 billion and EBS building society about €150 million.

The commission will assess the compatibility of the transferred loans as well as the actual transfer prices when they are passed on by the Government to Brussels. These reviews include mechanisms to allow for the claw back of money in case of overpayments.

The lenders are already preparing the paperwork for the second and third waves of transfers, though they have pressed Nama to reduce the level of information demanded by the agency.

Given the volume of paperwork and the scale of the sums involved, processing the top 10 borrowers will preoccupy Nama and the banks for most of next month.

As with all complex transactions the devil is in the detail

Two points that immediately spring out of this article is the inbuilt reviews that include a claw back facility on possible overpayments

This will have consequences for the Banks balance sheets as this clearly implies a possible debt !

The second point is that the banks seem to be reluctant to give full details and are pressing NAMA “to reduce the level of information demanded by NAMA”

This cannot be allowed, under any circumstances


Liz Mc Manus on Mayor of Dublin

Liz McManus
(Wicklow, Labour)

Question 22: To ask the Minister for the Environment, Heritage and Local Government when he plans to bring before Dáil Éireann legislation relating to a directly elected mayor of Dublin; if he plans to provide for directly elected mayors in other regions of the country and the regions involved; the timescale for their introduction; if the election of a mayor of Dublin and other regions will be accommodated within the same legislation; and if he will make a statement on the matter.

John Gormley
(Minister, Department of Environment, Heritage and Local Government; Dublin South East, Green Party)

The introduction of a directly elected mayor of Dublin will deliver significantly strengthened leadership for the city and region, with enhanced accountability and a direct connection with the citizen.

A general scheme of legislation to provide for the Mayor for Dublin was published on my Department’s website yesterday, as an opportunity for further consultation before the Bill is finalised, and to facilitate early implementation of the Bill’s provisions once enacted. Copies of the general scheme have been provided to each of the Party Leaders and spokespeople on local government, as well as to the Dublin local authorities.

I am conscious that, given the proximity of this year’s inaugural mayoral election, interested parties are very keen to examine and have an opportunity to provide input into, the draft legislation. I have invited each political party spokesperson to a meeting in the coming days to discuss the general scheme.

The general scheme provides solely for the election of a Mayor for Dublin, and the Bill is now being drafted as a priority.

The issue of democratic local government leadership elsewhere will be addressed as part of the wider approach to local government which will be presented in the White Paper on Local Government. The approach to the White Paper is currently under consideration by Government. A Cabinet Committee has been established to finalise the major strategic directions for inclusion in the White Paper.


Liz McManus
(Wicklow, Labour)

Question 24: To ask the Minister for the Environment, Heritage and Local Government if the interdepartmental task force on e-voting machines has met in 2010; if they are in a position to conclude its work; the costs related to the storage of the machines in 2009; if the termination of leases in the remaining four locations have been concluded; and if he will make a statement on the matter.

Bernard Durkan
(Kildare North, Fine Gael)

Question 165: To ask the Minister for the Environment, Heritage and Local Government the progress achieved to date in 2010 in efforts to dispose of the e-voting technology; if firm offers have been received; the cost of the e-voting technology including the cost of promoting its use, storage and research, with a breakdown of costings in each case on a yearly basis to date in 2010; and if he will make a statement on the matter. [9763/10]

John Gormley
(Minister, Department of Environment, Heritage and Local Government; Dublin South East, Green Party)

I propose to take Questions Nos. 24 and 165 together.

On 23 April 2009, I announced that the Government had decided not to proceed with implementation of electronic voting in Ireland.
Since then, a process has been put in place to address the issues that arise from the decision. An interdepartmental task force, chaired by my Department, has been established to bring the project to an orderly conclusion and to oversee disposal of the equipment and termination of storage arrangements. The task force aims to complete its work as soon as possible. The task force met three times in 2009, with its next meeting due to take place in March 2010. Between meetings, my Department maintains ongoing contact with members of the task force, in order to progress work on the cessation arrangements for the project.

In considering options for disposal of the equipment, the priority is to pursue the most economically advantageous approach, with a view to achieving the maximum recovery of cost possible in the circumstances, consistent with environmental and other obligations. Detailed consideration of all relevant factors is under way to inform the manner in which disposal of the machines will be effected. This includes contact with the original suppliers of the machines.

In 2007, over 60% of the machines (4,762 in total) were moved from 12 local storage locations to a central facility at Gormanston Army Camp. The remaining machines are stored at 13 local premises that were originally identified by Returning Officers for this purpose. It is intended that all machines will be removed from their present locations when arrangements for disposal are implemented. Work on termination of local lease arrangements is proceeding in this context.

My Department engaged consultants with valuation expertise in May 2007, following competitive tendering, to examine individual leases and make recommendations on termination of leases where appropriate. In May 2008, I accepted the consultants’ recommendations and these are currently being implemented. The consultants recommended termination of leases in seven cases and this has since occurred in three locations. No additional payments were made in respect of these terminations.

Work is ongoing on concluding the other four leases. It is expected that, in certain instances, termination of lease arrangements will give rise to buy-out costs and these will be dependent on the outcome of negotiations.

The total expenditure on the development and roll-out of the electronic voting system to date is some €51.346 million, the bulk of which has been incurred in purchasing the voting machines and ancillary equipment. These costs are set out in the following table.

Electronic Voting and Counting Project – Expenditure to Date

Expenditure item

Cost (€m)

Voting Equipment – Hardware and Software


Training and Awareness


Consultancy, Testing and Miscellaneous


Freight and Insurance




Based on figures received in my Department from Returning Officers, the total annual costs for storage of the electronic voting equipment (including the cost of insurance, service charges, rates and heating) for 2009 were some €182,500. Storage costs for 2004, 2005, 2006, 2007 and 2008 were some €658,000; €696,000; €706,000; €489,000; and €204,000, respectively.

Costs incurred in respect of the movement of electronic voting equipment to Gormanston in 2007 were some €328,000.

Guilty as charged


The European Commission cleared the corrupt Irish governments plan to bail out the countries financial institutions. Ireland established the National Asset Management Agency last year as a Toxic “bad bank,” thus bailing out well connected developers and the criminal activities of the top banks

These Toxic and worthless assets will be purchased from these firms with Irish government bonds. To the tune of now 80 billion Euros

The commission said the Irish plan was in line with rules allowing state subsidies to business during a serious economic crisis. The measure, which is said to targeted the real estate assets, but is also bailing out the banks bad derivative positions is key to cleaning up Irish banks

Five Irish financial firms plan to use the plan, according to the commission.

The bank involved are : Anglo Irish Bank,  Allied Irish Banks, Bank of Ireland, Irish National Building Society and Educational Building Society.

  what we are seeing is the complete destruction of private enterprise as we know it from now on we will have to ask permission from the corrupt bosses in Brussels to wipe our a****

Out national independence is now lost and our own corrupt government have sold us out to their real bosses the international bond holders

Every one of them deserves to be hanged on charges of treachery!

The Green Menace

Sargent to give payment to charity


The Green Party today confirmed former minister of state for food and agriculture, Trevor Sargent, would donate his ministerial severance payment to charity.

A spokeswoman said the payment had not been received yet but that Mr Sargent had indicated he would give it to the Society of the St Vincent De Paul.

The amount he is likely to receive has not been confirmed, but has been reported to be in the region of €47,000.

The Green menace!

This is great news for the St.Vincent De Paul, but let’s not go overboard on the singing of parses for this individual

Remember he was caught out lying about his contacts with the Garda

Anyway he and his band of green misfits, have an even greater crime to answer for ,the untold number of people that have taken their lives as a result of the gambling of the bankers with other people’s money and the rewarding of these same gangsters by the government Mr.Sargent has and still supports!

the wholesale dismantling of the health services and the total destruction of the educational system of this country!

This guy is no saint and his latest action in nothing short of a carefully choreographed photo shoot, designed to prop up the current dysfunctional government!

Alert ! Virus on it’s way!




Hi All,

I checked with Norton Anti-Virus, and they are gearing up for this virus!

I checked Snopes, and it is for real. Get this E-mail message sent around to

all your contacts ASAP.


You should be alert during the next few days.. Do not open any message with an

attachment entitled ‘POSTCARD FROM HALLMARK, ‘regardless of who sent it to you.

It is a virus which opens A POSTCARD IMAGE, which ‘burns’ the whole hard disc C

drive of your computer.

This virus will be received from someone who has your e-mail address on his/her

contact list. That is the reason why you need to send this e-mail to all your

contacts. It is better to receive this message 25 times than to receive the

virus and open it!

If you receive a mail called’ POSTCARD,’ even if it is sent to you by a

Friend, do not open it! Shut down your computer immediately. This is the worst virus

announced by CNN. It has been classified by Microsoft as the most destructive virus ever. This

virus was discovered by McAfee yesterday, and there is no repair yet for this

kind of virus. This virus simply destroys the Zero Sector of the Hard Disc, where the vital information is kept.



This is Ireland’s area 51

This is Ireland’s area 51

Despite constant governments assurances that there are no jobs in this area local SR’s clam a friendly alien, claimed to have appeared to them with the promises of 500 jobs

Our reporter Willie, went deep undercover, and was able to get these exclusive and, extraordinary pictures

Aer Linnguss ,a state agency said it was considering introducing around 1,100 compulsory redundancies and scaling back its operations as a contingency plan if the alien’s were to set up a base there!

stay tuned for further dp-dates!

Things getting bad in Greece!


Wealthy Greeks are pulling their money out of local banks and sending it abroad, fearing increased government scrutiny on assets and a run on the banks if Athens is forced to turn to the International Monetary Fund, according to private bankers and other people with knowledge of the situation.

for full article follow link


It’s time to shout ’stop’ – NAMA is grand larceny

The land has reverted to the price you’d get from a farmer for putting a donkey out to graze on it

For the past year, this column has been warning of a “triple lock” in the Irish banking system, which would financially incarcerate the Irish people for a generation.

The triple lock would solder the people to the banking system in a suffocating embrace forcing us to borrow from tomorrow to pay for yesterday and, in the process, destroy the opportunities of today.

read full articel at  http://www.davidmcwilliams.ie/2010/02/24/its-time-to-shout-stop-nama-is-grand-larceny



After Trevor Sargent resigning as Minister of State and accepting that he made ‘an error of judgment’ we are again faced with Government spin.

Mr. Sargent you’re  error was your support for the largest con ever to be pulled on the Irish people (NAMA) and its jail time you should be doing!

Here we see the calamity that is the current Government of Ireland

The dissolution of this government is just as quick as the drip feed of disastrous news on the banking system, plus the traitorous intention to support the golden circle’s  members of the financial elite of this country by socializing the toxic debts and privatizing the profits of the financial industry

We the people need to step up to the challenge and make the change.

I and a few friends are putting together a document that will be the basis for a manifesto, for a new political movement that in time will hope to challenge the current political setup here in Ireland

All are welcome to contribute to this 2nd step!

I believe that the current system is hopelessly corrupt and has lost its connection with the ordinary people

David I think it’s time to take the next step, one can only write so much!

How about it?

Tag Cloud