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Noonan to use Anglo promissory notes to deflect focus from Anglo bonds.

By Namawinelake

When Professor Morgan Kelly re-ignited the debate about debt forgiveness on 18th August, 2011 something strange happened in the aftermath. Out of nowhere came the announcement of a report being produced by a “mortgage expert group” by the end of September 2011. No-one seems to have previously heard of this group though the group’s title was practically the same as another group which had produced a report in 2010. But that 2010 group had done its job, delivered its recommendations and disbanded. This new “mortgage expert group” seems to have mushroomed up overnight and if you were cynical you might say it was a knee-jerk response to headlines on debt-forgiveness, and that the “end of September” report was an attempt to deflect focus away from politicianswho were, after all, still on the beach with their spades and buckets. Cynicism was only increased by the Government failing to give even the most sketchy of details about the work of the new group – its members and expertise, terms of reference, deliverables

full article at source: http://namawinelake.wordpress.com/2011/09/17/noonan-to-use-anglo-promissory-notes-to-deflect-focus-from-anglo-bonds-confused-maybe-that%e2%80%99s-the-idea/

1,500 people emigrating every week (Namawinelake)

By Namawinelake

Ireland’s Central Statistics Office (CSO) this morning released its population estimates for April 2011. Given that we had a census in April 2011 and preliminary results released in June, we already knew that the population had grown by 8.1% (341,421 people) in the past five years from 4,269,848 to 4,581,269. So the CSO release this morning with its estimate of 4,484,300 for April 2011 looks a little ridiculous because we have the actual numbers; but the reason for the difference is down to the CSO’s method of estimating population change from year to year. In simple terms, the CSO undertakes a quarterly survey of households every quarter and uses that survey of a sample of the population to extrapolate totals for the entire country.

read full article at source:http://namawinelake.wordpress.com/2011/09/15/1500-people-emigrating-every-week-though-800-per-week-immigrate-dublin-population-falling/

TD succeeds in prodding NAMA into action on developer business plan

By Namawinelake

Remember when NAMA was a glint in economist Peter Bacon’s eye? Way back when the Department of Finance was, according to Wikileaks, hinting that the haircut on loans would be closer to 50%? And when one of the greatest concerns was that this colossal new agency, the biggest quango in Irish history, would fall prey to cronyism and the sort of skulduggery that has long been a feature of public life in this country? This concern was going to be countered by strict NAMA anti-lobbying legislation that could land you in prison if you set out to corrupt NAMA’s purpose. And so it came to pass that section 221 of the NAMA Act tried to put pay to the gombeenism that has characterisedIrish life for decades if not centuries.

read full article at source :http://namawinelake.wordpress.com/2011/09/07/td-succeeds-in-prodding-nama-into-action-on-developer-business-plan/

Comment:

Cronyism is alive and well under Fine Gael and Labour too I see!

Irish auction roundup

By Namawinelake

Even though the Allsop Irish auction website was this morning displaying a message saying “our next Irish auction will be held on the 30th November 2011” a representative of Space, Allsop’s local partner, says that the catalogue for the 23rd September 2011 auction will be available later today or tomorrow as details are just now being finalized, and the auction will be going ahead exactly as planned. The publication of the catalogue is two days after the date which had previously been publicized.

full article at source here:http://namawinelake.wordpress.com/2011/08/22/irish-auction-roundup-%e2%80%93-large-scale-auctions-to-be-around-for-the-%e2%80%9cbest-part-of-a-decade%e2%80%9d/

Derek Quinlan’s art collection to be sold by NAMA

By Namawinelake

In terms of transparency in engaging suppliers of services, NAMA seems to be burrowing itself deeper and deeper down Alice in Wonderland’s rabbit hole. Whilst the agency started out by advertising all contracts for services and there was, by all accounts a rigorous procurement process to appoint an army of professionals, it seems these days that the agency is satisfied with a brief beauty contest before making appointments. Rumour has it that agents HT Meagher O’Reilly has been appointed by NAMA to let all the commercial property under its control in the south Docklands in Dublin.

full artical here at source:http://namawinelake.wordpress.com/2011/08/18/nama-appoints-company-to-sell-derek-quinlan%e2%80%99s-art-collection-a-company-which-the-european-commission-found-had-operated-a-cartel-which-defrauded-art-sellers-out-of-290m/

Is it time to let AIB go?

Allied Irish Banks' crest

Image via Wikipedia

Is it time to let AIB go?

namawinelake | November 2, 2010 at 11:51 am | Categories: Irish economy, NAMA | URL: http://wp.me/pNlCf-Kw

It sounds like the kind of decision a family around the death bed of a loved one faces. Though perhaps the comparison isn’t in the best taste, the reality is that the venerable 185-year old bank is facing insolvency and it is only the dogmatic government strategy of maintaining a duopoly of “Irish” banks not to mention over €10bn of public funds and significant ECB funds that is keeping the bank afloat. This entry examines the status of AIB and the cost of keeping it alive.

Firstly for our international friends, AIB is Allied Irish Banks PLC – note the plural “Banks”. It has nothing to do with the biggest failure in Irish corporate history, Anglo Irish Bank which is referred to domestically simply as “Anglo”. AIB was conceived in 1825 with the opening of a bank called Provincial Bank and over the next century and a half merged with other domestic banks to give us the Allied Irish Banks that we know today. Alongside Bank of Ireland it is seen as the rock of Irish banking.

During the property boom in the 2000s the bank was a late participant in the mania but there is evidence that once it arrived at the party it wasted no time in trying to catch up with the existing party-goers. The Minister for Finance estimates that the bank’s remaining NAMA loans are worth 40c in the euro (including long term economic value).

Its most recent set of accounts for the first six months of 2010 show that the bank had assets of €169bn, liabilities of €160bn and capital of €9bn. So it is a huge business in an Irish context but clearly solvent by reference to these results. Unfortunately the results don’t reflect the true condition of the loan assets. The cumulative provision for losses on NAMA loans in the interim results was 26% – that is, the loans were worth 74c in the euro. The most recent ministerial estimate is 40c in the euro. This should result in a further loss to AIB of €5.5bn. But NAMA loans form a small part of AIB’s total loanbook and the company will have some €81bn of non-NAMA loans (plus €4.5bn of €5-20m formerly NAMA loans) once NAMA has absorbed the poison. The cumulative provision on these loans in June 2010 was just €3bn (note 22 on page 83). Given that these loans include commercial property and business lending in a state which has suffered the greatest contraction in GDP amongst developed countries in modern times, I would suggest that provision is utter fantasy.

Like some shady cash-in-hand sole trader, AIB maintain a second set of books under the auspices of the Financial Regulator who in March this year set out the capital requirements for AIB and other banks (the Prudential Capital Assessment Review). In September using this second set of books, the Regulator announced that AIB needed raise €10.4bn by the end of this year. AIB’s strategy was to dispose of some assets and then to raise additional equity underwritten by the State. There is a detailed entry on these capital raising efforts here but in summary the bank disposed of its Polish operation (still subject to approvals) which yielded €2.5bn capital from the €3.1bn sale price and yesterday AIB held an EGM in which shareholders approved the sale of the bank’s stake in US bank M&T which should add €0.9bn to the capital coffers. The bank announced yesterday that it was placing the sale of the UK operation on hold (though there appears to be some back-pedalling on these comments this morning). Unless there is some dynamic between the UK sale and capital that means that the bank still needs €7bn in new capital in the next 60 days. And there is only sucker with that level of available funding that is willing to invest in what is likely to be an insolvent bank, and that’s the government who seem intent on placing just under one half of our National Pension Reserve Fund (that’s the €3.5bn invested in preference shares last year and the €7bn now needed as a proportion of the €24bn funds in the NPRF) in one basket (case) – AIB.

The government strategy seems chauvinistic (“we need a duopoly of Irish banks”), knee-jerked, immoral (not a word you’ll often see on here but taking money from the pension fund to prop up an insolvent bank is flagitious when there are other options to protect a functioning banking system), recklessly risky (one half of the pension fund is “invested” in one company in one sector). AIB should be taken into 100% state ownership immediately, the State should assess the value of any shareholdings in AIB (I expect they are worth nothing), negotiate with the €4bn+ of junior bondholders the company had at June 2010 and assess if senior bondholders might make a contribution to the insolvent bank. Only then should the State assess the systemic importance of AIB and should probably seek a buyer for the rump of that company. Even if the state is left with only one Irish bank so what? We have a Financial Regulator with 520 staff that should be able to regulate a restricted market to combat uncompetitive practices and when the Irish economy recovers other banks may see prospects here.

If on the other hand, we maintain the pretence that AIB is a viable bank then €7bn will need be found in the next 60 days. At the very best we are set to lose €1.8bn if we continue with the madness of the NPRF underwriting a share issue at €0.50 per share when the shares are presently trading at €0.35. With the healthiest Irish bank, Bank of Ireland, having to borrow 3-year funds at 5.875% last week (excluding costs) in a market where mortgages and commercial lending is still available at 3%, the prospects for profitability at AIB are slim in the context of the NPRF’s investment strategy which allows it invest in any market across the globe.

It is time to say our goodbyes and pull the plug.

source http://namawinelake.wordpress.com/2010/11/02/is-it-time-to-let-aib-go/

Comment:

Unfortunately this government is hell bent on holding on to this once trophy bank along with the top notch gangsters and X Politicians at the helm who will not vote themselves out of this sought after gig

Since the Minister of Finance himself says that the still remaindering loans are only worth 40c in the euro this alone tells me that the bank is gone beyond repair, as every one of his pronouncements on figures have been totally out.  I expect that you wouldn’t even get 10 cent on the euro The cost is irrelevant as the down trodden taxpayers are going to pay up.This Bank is dead and powering billions into it is tantamount to treason.

Shut this toxic toilet down now and save us the poor taxpayers a little bit of pain!

Thomas

Residents movement for political change

Sean Fitzpatrick is renting properties at bargain-basement levels

Sean Fitzpatrick – best value for money landlord in the State?
namawinelake | September 25, 2010 at 11:38 am | Categories: Irish Property, NAMA | URL: http://wp.me/pNlCf-C7  

The Irish Times yesterday reported on former Anglo Irish boss Sean Fitzpatrick’s continuing bankruptcy journey through the High Court and stated that Sean, together with his wife in some instances, has a number of properties on which he is collecting rent. The details of the properties given would seem to suggest that Sean is renting properties at bargain-basement levels, in particular on the following two properties:
(1) 25 Camaderry Road, Bray, Co Wicklow on which Sean gets €5,100 per annum in rent (that’s an even €425 per calendar month). I don’t know the road at all but a summary search on DAFT.ie shows a three-bedroom one-bathroom semi-detached house on Camaderry Road with a sale agreed status – the asking price was €569,000. There doesn’t seem to be any other property for sale or rent on Camaderry Road. If Sean’s 25 Camaderry Road property were similar to this property and the €569,000 asking price was a reflection of the value of the house then Sean would be getting a yield of 0.9%. The Rent Assistance for Wicklow is €529 pcm at the very lowest single occupancy level and rises to €1,110 pcm, so Sean appears to be undercutting the State’s own rental assistance levels!
(2) Flat at 7th,8th and 9th floors, Smithfield Market, Dublin on which Sean is reported to be receiving €16,800 per annum (equal to an even €1,400 per calendar month). Again there are no further details of the accommodation but if the apartment extends over three floors, it is hardly a studio! Now it appears that you can rent a 1-bed apartment from €850 pcm in the Smithfield Market but penthouse apartments would appear to be going for €2,600 pcm. Without knowing more details about Sean’s flat it would be difficult to comment but on the face of it a 3-floor flat for €1,400 pcm appears very low.
It should be said that the Irish Times article also refers to a property at Killiney Court being rented for €30,000 per annum (€2,500 pcm) and previous reporting has claimed this property is an apartment so it would seem that the rental on the Killiney Court property is more in line with open market rents.
source http://namawinelake.wordpress.com/author/namawinelake/

Files in the Land Registry Office show that Mr and Mrs FitzPatrick became owners of an apartment in Smithfield Market in December 2006.

Ownership of the apartment, which is on the seventh, eight and ninth floors of the building according to the registry documents, was transferred in December 2006 by Fusano Properties.

Fusano was the developer of the complex and is part-owned by businessman Paddy Kelly. Fusano was funded by Anglo Irish Bank.

Mr Kelly’s loans are now understood to belong to the National Asset Management Agency.

In May 2008, a mortgage against the property was registered by Haven Mortgages. In his statement of affairs filed as part of his bankruptcy proceedings, Mr FitzPatrick said he was getting an annual income of €16,800 from the apartment. source http://www.irishtimes.com/newspaper/finance/2010/0924/1224279586377.html

In May 2008, a mortgage against the property was registered by Haven Mortgages. In his statement of affairs filed as part of his bankruptcy proceedings, Mr FitzPatrick said he was getting an annual income of €16,800 from the apartment.

The apartment was one of three properties he said he was renting but which, when mortgage payments and other costs were taken into account, were producing a monthly loss of €3,505.

Another of the properties was 25 Camaderry Road, Bray, Co Wicklow, from which Mr FitzPatrick gets €5,100 per annum in rent.

A lien against this property was registered in March 2009 in favour of Ulster Bank.

The final property being rented is at Killiney Court, Station Road, Killiney, Co Dublin, from which he gets rent of €30,000 per annum.

source http://www.irishtimes.com/newspaper/finance/2010/0924/1224279586377.html

Comment:

I thought Sean Fitzpatrick has only 188 euro a month to live on!

Why is this c**** been let con his creditors and the Irish taxpayers?

Anywhere else he would not have such a grin on his face

he is making such a fool out of us all ! He should be in Jail along with the rest of the gangsters that have destroyed this country

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