just seeing as NAMA is back in the news this is a post from 2 years ago. Another rotten to the core set up with many of the usual suspects.
N.A.M.A is unknowable , unseen , illogical and unaccountable. It is beyond intelligence .
Most of the general public in Ireland probably think that NAMA is fully owned by the Irish Government . (Probably – most of the general public in Ireland don’t really care.)
If the bad debts turn out to be OK – then NAMA could make a profit – so that could be good for the taxpayer?
But – there is a small catch – PRIVATE INVESTORS actually own 51% of Nama’s (National Asset Management Agency) property loans.
17% is owned by Walbrook Capital (Sold to them by Irish Life in Oct 2012)
17% is owned by New Ireland – which is part of the Bank of Ireland Group
17% is owned by “major pension and institutional clients” of AIB Investment Managers
They paid €51 Million for a 51% share in NAMA.
The government has set up an SPV – special purpose vehicle – to buy and manage the debts. This is a way of keeping the NAMA debts off the Irish State’s balance books – and off the national debt. This was done to get around EU rules about state borrowing limits
The “SPV” is a separate entity to Nama and will have its own board, although this will include representatives of the asset management agency. Nama will supposedly have a veto over all of the SPV board’s decisions.
If the property loans can be managed profitably, then Nama and the private backers will be paid a yearly dividend, tied to returns from Irish Government bonds. Once the entire operation is finished, the SPV will be wound up. The Government says that the investors, that is Nama and the private backers, will only be repaid their €100 million if the resources are there. ( Blah Blah Blah
If the loans are ultimately profitable, they will be repaid their capital plus 10 per cent – (€1.7 million for each private investor) – once the SPV is wound up.
This means that the private backers will be repaid their €51 million, plus €5.1 million, plus any dividends they will have received along the way. Any further profits over and above these amounts will be returned to the exchequer.
However, if the property loans are not profitable, Nama and the private investors will lose their €100 million.
(In the scheme of things – the €49 million NAMA investment is a small drop in the ocean of the NAMA €80 Billion debts)
So it appears that the Irish taxpayers will have paid around €80 billion to buy overpriced property and bail out the banks. But – 51% of the debt is sold back to some of those banks – for just €51 Million !!
WALBROOK CAPITAL Aggressive capital management – The controversial Protium deal (September 2009 – April 2011)
Described by one senior trader who spoke to the Daily Telegraph in April 2011 as “everything that is wrong with the City”, Barclays’ Protium deal was a complicated accounting move to reclassify a portfolio of toxic trading assets in a fund run by former employees.
Barclays sold $12.3bn in assets, consisting of securities and bonds impacted by the US sub-prime mortgage crisis, to a fund called Protium Finance in September 2009, Dow Jones Newswires reported at the time.
Protium Finance was managed by C12 Capital Management, a company incorporated in the Cayman Islands and run by former Barclays executives Stephen King, ex-head of mortgage trading at the bank, and Michael Keeley, a former member of the Barclays’ capital management committee.
Barclays provided a $12.6bn loan to Protium, secured on the credit assets and with a 10-year maturity.
The vehicle kept the assets on Barclays’ balance sheet, although as a loan and not as trading positions – therefore eliminating the need to report market movements in the value of the assets.
Barclays repurchased Protium from C12 in April 2010, paying $270m to an unnamed third-party investor in the vehicle. It also paid an $83m severance fee to C12. Barclays said at the time of the re-purchase: “Acquiring control of Protium will assist the group in facilitating an early exit from the underlying Protium exposures and improving returns.”
Lord Turner described the impact of Protium as “unfavourable to the degree of external trust in Barclays’ approach to issues such as tax, regulation and accounting”.
Nama announced the sale of the 17% stake by Irish Life to stake to Walbrook Capital, a London firm set up last year by Michael Keeley, Geoff Broomhead and Simon Haworth, former executives in the structured credit division of UK bank Barclays.
Michael Keeley. Really interesting guy. If you don’t know who he is, it is worth googling him and the word tax avoidance. Two links
Walbrook is a newish little project but seems to be a spin out of C12 which was previously involved in some complicated work for Barclays.
Thought it was interesting that Barclays has been assisting them with some financial elements in August.
Am sure it is just a pure co-incidence.
It’s a crazy world run by bankers & solicitors it seems……and corruption
This article from the Limerick Post is worth reading. It tells us a company whose owners owe massive amounts of money to Anglo Irish Bank will be providing legal advice to NAMA.
LIMERICK solicitors Dermot G O’Donovan, three of whose partners are directors of the Fordmount Group, now in receivership, have been appointed by NAMA to provide legal services.
Fordmount is believed to owe in excess of €100m to Anglo Irish Bank.
NAMA will appoint more than 50 firms to sit on a panel of legal advisors. Being on the panel does not necessarily mean a company will be called to provide advice. Indeed the reason NAMA would claim such a large number of advisors is required is – for want of better wording – to dilute any conflicts of interest. Still, if claims of conflicts of interest are raised, it’s worth taking a look at them.
How can the board be completely separated from Nama when the Nama chairman is sitting on it?! Is this some kind of riddle? And Mr. Geoghegan — wonderful. At least the US senate hearings are over now, so he can concentrate on advising Nama to be more Nama-like.Mr. Michael Geoghegan CBE
The story is also perhaps illustrative of just how interconnected the various elite facets of Irish society have become in the last ten or so years.
“NAMA is complicated….no shit sherlock”
NAMAWINELAKE ON NOONAN
NAMA-NOONAN-AND FOR FUCKS SAKE(Noonan-Misprison of Treaty…i hope so )
If you were asked to name the NAMA board, you’d probably struggle beyond Brendan McDonagh the CEO, Frank Daly the chairman and John Mulcahy the head of asset management. But there’s a former IMF mission chief there also, Steven Seeling, not to mention a former county manager William Soffe, former KPMGer Eilish Finan and the board’s most recent appointment Oliver Elingham who got the call from Minister for Finance Michael Noonan last month.
And then there is Brian McEnery, an accountant who is a partner in accountants and receivers Horwath Barstow Charleton in Limerick. Brian was appointed in December 2009 , a full 13 months before General Election 2011 where Brian was director of elections for Limerick-man Michael Noonan who is now of course the most important minister in this administration. Brian’s is chair of NAMA’s audit committee and his term on the NAMA board is set to expire in December 2013.
Last week, Minister for Health James Reilly announced that Brian has been appointed chairman of the Health Information and Quality Authority, HIQA – the organization that monitors standards of health care.
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Noonan refuses to release “The Black Book”
May 8, 2013 by namawinelake
“The Black Book was the CB crisis management manual including guidance on subjects such as emergency liquidity assistance, legal requirements and more logistical issues.” Nyberg report on the banking crisis published March 2011
This sounds like something out of the Evil Dead, but it seems that the Central Bank of Ireland has a ”Crisis Management Manual” also known as “The Black Book” which is a “set of processes and procedures to assist it in the management of a financial crisis situation”. It was drafted in 2001 and updated in August 2007. Given that it was in existence before the Night of the Bank Guarantee in September 2008, before the nationalization of Anglo Irish Bank in January 2009 and the creation of NAMA in December 2009, you would think that we had a right to see this Black Book. Let’s not forget that this state has borne the €71bn gross cost of bailing out the banks – that’s the famous €64bn plus €1bn shoveled in, in March 2013 to pay IBRC bonds plus €6bn of state-aid given to the banks by NAMA.
In the Dail this week, the Independent TD for Wicklow and east Carlow, Stephen Donnelly asked Minister for Finance Michael Noonan to provide a copy of the Black Book, and…… yes, you’ve guessed it, it’s confidential. In fact Minister Noonan went further this time and said “The document was shared with the Department of Finance on the understanding it would be treated in strictest confidence given the nature of the matters treated in the document. I do not therefore propose to provide a copy of the document.”
It can’t have been a great read.
The parliamentary question and response are here:
Deputy Stephen Donnelly: To ask the Minister for Finance if he will provide a copy of the Crisis Management Manual, also known as the Black Book, as it existed at the end of 2006 and/or as redrafted during the period August 2007 to September 2008 under the auspices of the Domestic Standing Group, as referenced in the Honohan Report and the Nyberg Report (details supplied); and if he will make a statement on the matter. [21091/13]
Department of Finance, Michael Noonan: The document referred to by the Deputy in his question was drawn up by the Central Bank of Ireland to provide it with a set of processes and procedures to assist it in the management of a financial crisis situation. The question of releasing the document is therefore a matter for the Central Bank of Ireland in the first instance. The document was shared with the Department of Finance on the understanding it would be treated in strictest confidence given the nature of the matters treated in the document. I do not therefore propose to provide a copy of the document.
JOBS FOR THE BOYS-Linehan and Noonan
REWARD FOR REVENUE
The Minister for Finance, Brian Lenihan, has today announced Steven Seelig’s appointment to the board of NAMA – see NAMA press release here. Mr Seelig was, according to minutes of a meeting between the IMF and government in April 2009, reported to have expressed the view that NAMA will not result in more credit reaching Irish households and businesses.
While no-one now believes that NAMA will directly result in a “wall of cash” immediately washing over households and businesses, it was hoped that NAMA would be a vital part of the jigsaw of guarantee, balance sheet cleansing and recapitalisation that would restore lending to normal levels. Given NAMA’s disproportionate involvement with Anglo (€36bn of the €81bn loans are expected to be from Anglo) and the severe haircuts across all financial institutions, NAMA’s role may diminish in importance when compared alongside the recapitalisations.
Anyway, good luck to Steven Seelig – it won’t hurt to have an international-centric set of eyes contributing to NAMA’s operation. Interesting protocol that it is the Minister for Finance, not the NAMA Chairman, of the Board, that makes the announcement of an addition to the NAMA board.
Mr. Frank Daly
Frank Daly was born in Abbeyside, County Waterford, and educated at Dungarvan C.B.S.; University College, Dublin; and the Dublin Institute of Technology. He holds a BComm Degree and a Diploma in European Community Law. In 2010, he was awarded an Honorary Doctorate of Laws by the University of Limerick in recognition of his distinguished public service.
From 2002 to 2008, he was Chairman of the Revenue Commissioners. Having joined the Revenue in 1963, he has been a Commissioner since 1996 and Accountant General of Revenue and Head of Strategic and Business Planning since 1993.
Previous to the NAMA appointment, he served as Public Interest Director of the Anglo Irish Bank under the Banks Guarantee Scheme and Chairman of the Commission on Taxation, which was established to review the structure and efficiency of the Irish Taxation System.
Frank Daly was appointed Chairman of the National Asset Management Agency (NAMA) by Ireland’s Minister of Finance in December 2009. He also currently chairs the NAMA Northern Ireland Advisory Committee
PROPERTY GURU & ADVISER ???
John Mulcahy the right man to advise Nama ?
Property guru Mulcahy failed to forecast commercial crash and seems to have a slight conflict of interest seeing as he advised some of the biggest players in the market.He was hardly the only auctioneer/banker/developer to claim the bubble would continue when they knew otherwise.
The man whom the Government is depending upon for property advice, has not always called the market right when gazing into his crystal ball.
The chairman of the Irish arm of Jones Lang LaSalle told this newspaper two years ago that the commercial property market was extremely healthy. IBRC creditors were IBEC, Jones Lang LaSalle, Eugene F Collins, McCann FitzGerald, PR company Drury and the Institute of Bankers of Ireland.
“The Irish commercial property market is extremely healthy, but the residential property market needs to take some fiscal Solpadeine before returning to wiser ways,” Mr Mulcahy said in a July 2007 interview as the credit crisis began to break. While accepting house prices might fall 10pc, Mr Mulcahy said commercial property was doing well. “The prospects for next year look equally promising,” he added.
Still, Mr Mulcahy’s knowledge of the property market is second to none and he has LUCKILY ENOUGH managed to make a fair amount of money from it over the years.The property expert has been involved in many major developments. He was a key adviser on the €430m sale of the Ringsend Glass Bottle site to a consortium including developers Bernard McNamara, Derek Quinlan and the Dublin docklands Development Authority.
His advice has often been cited in the past by developers such as Sean Dunne who included an appendix from Mr Mulcahy when seeking to lobby Dublin City Council for permission to change the Ballsbridge local area plan to allow offices to be built on the site of the former Jurys Ballsbridge and Berkeley Court.
Michael Geoghegan CBE
Michael worked for HSBC, the world’s largest international bank, for nearly four decades, living in 12 different countries, across four continents, culminating in he becoming the Group Chief Executive of HSBC Holdings Plc in May 2006
Since retiring in March 2011 Michael has been advising governments, international companies and family offices, whilst overseeing the Madrinha Trust that he and his wife, Jania established to assist disadvantaged young people across the world.Seems to have a slight conflict of interest seeing as he advised some of the biggest players in the market.
Dr. Denis Rooney CBE
Denis is a senior business leader with over 40 years experience in private and public sector organisations. He recently stepped down from his role in chairing the International Fund for Ireland [IFI]. He is a director of Dublin based To Be Training and Development Ltd.
He qualified as a chartered quantity surveyor and set up the surveying and project management practice DRA in 1984 which was acquired in 2003. Denis has held a number of key appointments such as Chief Executive of White Young Green Ireland, Chairman of the Institute of Directors [IOD] Northern Ireland and Chairman of the Royal Institution of Chartered Surveyors [RICS] Northern Ireland. He chairs the charitable trust which is currently restoring the SS Nomadic, the tender built by Harland and Wolff in 1911 which ferried the passengers to the Titanic on its ill fated voyage.
Bank of Ireland-Denis O Brien-KPMG v Goldman Sachs ….its in the game. No its in the Independent. Whats not in the spINDO is that John Mulcahy of NAMA will be busy as his company Jones Lang LaSalle was also one of those in the leaked IBRC creditors list who are now transferring unsold borrowings to the National Asset Management Agency via theirs and Denis O Briens friends KPMP . Among them are borrowings related to TV3, Arnotts, the Racing Post, Topaz and stockbrokers Davy.
The Irish investors who own the Racing Post said they would bid for their own borrowings of €150m. There is also speculation TV3 would try to buy back its loans.
Arnotts’ borrowings of €200m have been linked to Selfridges and the House of Fraser.
Davy had paid off more than half its loan and plans to purchase the outstanding €140m.
Two bids were expected for the €185m loan of petrol retailer Topaz, with one coming from its significant shareholder Denis O’Brien…..and are they all buying back their own shares for pittance from their own friends ?