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Cowen admits billions are “Lost”

Cowen admits cash put into bank gone forever

By Fionnan Sheahan Political Editor

Wednesday June 23 2010

“Unelected” TAOISEACH Brian Cowen last night finally admitted the €22bn

of taxpayers’ money being pumped into Anglo Irish Bank won’t ever be seen again.

Mr Cowen was repeatedly quizzed by opposition leaders on the view of the nationalised bank’s chairman that the “lion’s share” of the €22bn was gone.

“That money is not going to be returned,” he eventually replied after being asked the question four times. Anglo chairman Mike Aynsley made the startling admission last week that the capital injection would “never be seen again”.

Anglo has already sent €9.3bn in loans in its first tranche transfer to the National Asset Management Agency (NAMA) and will send another €26.3bn before the end of the year. A discount of 50pc is expected across the whole debt pile.

“That money is not recoverable,” Mr Aynsley said, adding: “That money is gone.”

Fine Gael leader Enda Kenny and Labour Party leader Eamon Gilmore put pressure on Mr Cowen to say if he agreed with this assessment.

Avoiding the question, the Taoiseach repeatedly said the recapitalisation of the banks was necessary where there were not enough shareholders’ funds.

Mr Gilmore came back again asking if the money was gone. “Don’t give me argument, don’t give me where you were right, and where I was wrong and where Deputy Kenny was wrong, and where everyone else was wrong apart from yourself; just give us an answer to that question — is the money gone?” he said.


Mr Cowen ultimately agreed with Mr Aynsley’s analysis.

“They are the losses being taken on by the taxpayer; and it is clear in relation to that bank that that is the situation.

“That money is not going to be returned because clearly the shareholders’ funds have been inadequate to meet the losses,” he said.

Mr Kenny said Mr Cowen had made a personal promise to the Irish people in October 2008 — at the time of the bank guarantee scheme — that they would not be held accountable for the banking bailout.

He questioned why the Government was now borrowing vast sums to pay off Anglo debts while professional shareholders weren’t being asked to share the pain. “It makes absolutely no sense for the Government to continue with the policy of borrowing money to put into a black hole,” he said.

Mr Kenny said creating employment was the only way out of the crisis.

“Money could be borrowed for that instead,” the Fine Gael leader insisted.

– Fionnan Sheahan Political Editor

Irish Independent


Long Term Economic Value – changes to terms?

March 8, 2010 by political accountability

The Independent today reports that Brian Lenihan signed into law last Wednesday a new valuation methodology for NAMA assets. This blog is trying to get hold of what was signed and will have a link here shortly. The Independent says

“Crucially, the net effect could change the amount being paid by the taxpayer for €77bn of loans.

It is quite possible that the allowance on the long-term economic value of the loans which the finance minister estimated at 15pc last September could now be lower.

However, this won’t become clear until the loans are transferred and the final current market value figures are known.”

Meanwhile the Irish Times today reports on a recent legal conference where the suggestion was advanced that the Minister of Finance’s role in overseeing the LTEV valuation may not be constitutional.

full posting at following linkhttp://namawinelake.wordpress.com/2010/03/08/long-term-economic-value-changes-to-terms/

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