What is truth?

Posts tagged ‘Brendan McDonagh’


Wait until the dimwits in the current government present their crushing budget .This price will be views as astronomical .As far as I can see, I see no bottom we have a long way to go to reach that dark place ! With the real unemployment figures concealed from the public I estimate it to be somewhere between 29 an 30%.The banks  are now free to crucified their own customers with penal charges and their own customers are been held hostage to ever increasing interest rates whenever they choose! The current government have washed their hands of the countless thousands of trapped citizen’s snared by toxic and corrupt bankers.

Nama is the real culprit here as they have control on the flow of sales of all types of property in Ireland now and with consent of the government they are drip feeding the sale of property, this option is however not available to the ordinary joe who has just lost his job and is forced to emigrate.

It is outrageous, most of the cheerleaders of the property boom are now employed by NAMA as “experts” and are been paid by the victims of these fraudsters. A day of reckoning is coming and it ant going to be pretty !   I am living in Lubeck In Germany , an Irish emigrant,  and I can smell the stink of this deal from over here .This has all the hallmarks of a financial stroke  by absolute gangsters  on the Board of AIB  and NAMA “Looking after insiders” with a guarantee profit .

NAMA Wine Lake

Jack Fagan has a rare weekend outing in today’s Irish Times where he reveals that a consortium of European investors has bought the four main office blocks of AIB’s Bankcentre in Ballsbridge opposite the RDS. The seller, Aviva is said to have accepted “just over €70m” for the sprawling 154,000 sq ft complex set over four buildings. The property was originally bought in April 2006, a year before the general peak in Irish commercial property, for €177m. Commercial property generally increased by just over 21% between Q1 2006 and Q1 2007 which would have indicated a notional peak valuation of €214m. A €70m price tag today represents a 67.3% decline which is in keeping with the general market as tracked by Ireland’s two commercial property indices from Jones Lang LaSalle and SCSI/IPD.

The tenant in the offices is the 99.8% state-owned AIB which has thus far cost us at least…

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The NAMA Top 30 developers – where are they now?

source and full article :http://namawinelake.wordpress.com/2012/04/14/the-nama-top-30-developers-where-are-they-now/


I’m pretty sure you won’t be seeing them in your local dole office anytime soon more likely they are sunning themselves on the cot azure. How many of these bright sparks are getting paid Euros 200,000  from NAMA  ???

Post-Christmas spinning classes start early for NAMA

By Namawinelake

You would have thought this would be a quiet week for news reporting at NAMA, but it seems the Irish Independent has discovered a few nuggets which seem to cast NAMA in an uncharacteristically benign light. But stick the nuggets under a microscope and they start to look just a leeettle suspicious.

Yesterday the Independent reported that NAMA had “tipped-off” the Revenue Commissioners (Irish tax authorities) about “possible tax evasion” by “dozens” of the 850-odd developers whose loans NAMA is managing. Dig a little deeper and you will see that NAMA was doing no more than its duty in notifying suspicious transactions or assets to the Revenue; some or indeed many, of these suspicions might previously have been notified to the Revenue by the original banks – NAMA is not saying and the Independent doesn’t include such detail.

full article at source:http://namawinelake.wordpress.com/2011/12/28/post-christmas-spinning-classes-start-early-for-nama/


This state agency is nothing more than a gravy train for the insiders and political fixers who are milking this cow for all its worth and the taxpayers of the country are been sucked dry!We the citizens are been screwed and the government are fanning the flames  of revolt!

NAMA’s negative equity mortgage product

By Namawinelake

The NAMA CEO, Brendan McDonagh delivered a speech to the Irish Council for Social Housing (ICSH) in Salthill this morning in which he gave further details of the NAMA negative equity mortgage product. It is, said Brendan, hoped that the new mortgage product will be trialled in Q4, 2011 (which starts in a couple of days) and Q1, 2012 and will cover 750 properties initially. There have been discussions with AIB, Bank of Ireland and Permanent TSB but Brendan wasn’t giving any further details this morning. There is strong speculation that the negative equity product will resemble the product launched by financial services group, IFG three weeks ago.

full article at source: https://mail.google.com/mail/?hl=en&shva=1#inbox/132b0038b4376782

Ireland Cannot Afford To Pay Amounts Guaranteed:Default the Only option

the articel was  published by Dr.Bill Tormey last 31 May 2010

Link: http://www.billtormey.ie/2010/05/31/kiberd-agrees-with-kelly-on-debt/

Damien Kiberd is a sound commentator in my view. His article supports my abhorrence of the NAMA project from the outset. Brian Lenihan Jnr has not been a good Minister for Finance depite the rumours to the contrary. He could be worse in the usual Fianna Fail manner but he has been enveloped by the establishment from the beginning. Kiberd in essence details the evidence that forces him to conclude that Professor Morgan Kelly of UCD is correct in his recent apocalyptic pronouncements in the Irish Times article when he concluded we are bankrupt – only a question of time.

The bloated deficit undermining us

We have slashed wages, imposed taxes and cut social welfare. Yet we still run the highest deficit in the eurozone

Damien Kiberd

On April 18, I wrote  (Sunday Times)that the rising cost of the bank bailout could lift Ireland’s debt to gross domestic product (GDP) ratio to 120%. I said that the debt to gross national product (GNP) ratio could rise to 150%. The logic behind this argument is inescapable.

The state has invested €12.5 billion in Anglo Irish Bank. Another €10 billion is required, according to government nominees on Anglo’s board of directors. Anglo is 100% state-owned. After transferring loans to the National Asset Management Agency (Nama), it will retain a loan book of €35 billion, of which 53.5% is classed as impaired. Further losses will be the taxpayers’ responsibility.

The government has also pumped €2.7 billion into Irish Nationwide Building Society (INBS), but its final capital requirement will be closer to €5 billion. It, too, is 100% state-owned. Its debts are now ours.

So for the two problem children of Irish banking, the cost to the state is
€25 billion and counting. It is not unreasonable to assume that the bill will stretch beyond €30 billion.

The state has invested €7 billion in Allied Irish Banks and Bank of Ireland, but did not borrow to do so. These are pension reserve investments and recoverability depends on the stock market prices of shares in the two banks. Let’s assume a happy ending.

Nama is borrowing €40 billion to give to banks for toxic loans. Only 33% of these loans are “cash generative”. The legal work on many of the loans is a “litany of horrors”, to quote Nama’s boss, Brendan McDonagh. Any write-down on loans acquired is the taxpayers’ liability.

How much will Nama end up costing the state? Willie Slattery, the head of the State Street funds operation in Ireland, says the agency will end up losing €15 billion. So, if we add in provisions for further write-offs at state-owned banks, particularly Anglo, and take this insider’s view of Nama, the total cost will amount to about €50 billion. (As of April 2011 that amount is now €70 Billion and rising)

Professor Morgan Kelly of University College Dublin uses a different method to calculate the scale of the bailout but arrives at much the same conclusion. His estimate is that debt will hit 115% of GDP or 140% of GNP by 2012 — if we are lucky.

He says the state is likely to become increasingly responsible for loan losses on credit given by these banks to developers, speculators, small and medium enterprises, consumers and mortgage-holders. He says the bill for write-offs will range from €50 billion to €70 billion. His loan loss projections are based on quite conservative assumptions of 20% default by small and medium-sized enterprises and big companies, 33% by property developers and 5% by mortgage-holders.

He picks the lower €50 billion estimate of the total cost before making his debt/output projections. Yet the resultant numbers are horrific, a truly gargantuan sum to be borne by 4m people and their descendants.

Britain is 15 times our size in terms of population. Gross the numbers up.
Would the UK’s voters accept a €750 billion tab for bank bailouts? I doubt it. The population of America is 300m. Would its electorate tolerate a $5 trillion bill for bank rescues? No.

Kelly’s solution is controversial. He says the state should not default on its core debt but should convert up to €65 billion worth of bank bond issues into bank equity.

Many analysts see this as far-fetched. Converting bank debt to equity might be impossible at Anglo and INBS, and unnecessary at AIB and Bank of Ireland. But it is right to consider radical proposals. The government is, after all, mortgaging our futures.

President Franklin Roosevelt’s first move after coming to power in the 1930s was to shut all the American banks for a fortnight and reopen them gradually over a two-year period. Against all advice from the economic establishment, he then used a minor piece of farming legislation to take the dollar off the gold standard and devalue the currency. His radicalism paid off.

But a dose of realism is in order too. Servicing the €50 billion bank bailout ( Now €70 Billion) won’t come cheap. Even if the National Treasury Management Agency
(NTMA) is lucky, this money will be borrowed at rates of close to 5%. The rate will be higher if sovereign debt markets continue to deteriorate.

And this bill comes on top of the government’s core borrowing requirement, which is just under €20 billion a year.

We cannot afford to hang around when it comes to debating this issue. Our debt to GDP ratio was 25% at the end of 2007. It hit 65% last year. Gross debt, as defined by Eurostat, will reach 89% by the end of 2011, according to the Economic and Social Research Institute.

Greece was able to float 10-year sovereign bonds at 5% as recently as January. By April, it was being asked for rates of up to 18% on two-year finance. Effectively, the big European banks shut the doors of global credit markets on Greece.

Greece did not default, but the only thing that saved it was a €110 billion EU rescue package, which in effect underwrites the orderly repayment of Greece’s loans from Commerzbank, Crédit Agricole, Deutsche Bank and other lenders. The price came in the form of externally imposed austerity measures. Greece is bust in all but name.

Those who think any notion of renegotiating the terms of distressed Irish bank bonds are fanciful should consider the following: the two most eminent figures who suggested a pre-emptive negotiated debt restructuring by Greece (as a prelude to any rescue) were Paul Krugman, a 2008 Nobel prize-winner, and Nouriel Roubini, who is something of a prophet on Wall Street.

The latter claims that the Greek rescue money is in effect being wasted as it has not been preceded by debt restructuring.

Here in Ireland, we are attempting an even more astonishing task. We are running a country where tax income has collapsed from €48 billion a year to
€31 billion. The money value of our GNP is 25% below peak levels. We would normally be stimulating the economy, using Keynesian techniques. Instead, we have embarked on a massive austerity programme that remains to be completed.

We have cut the gross wages of public servants by 20%, while imposing additional taxes and levies on all workers. We have even cut social welfare. Yet we still run a bloated 14.2% deficit that is the highest in the eurozone and threatens to undermine our capacity to borrow money at reasonable rates. And yet nobody here talks about restructuring our debt.

A central and growing reason why we are in this vulnerable state is because we have socialised a maelstrom of unjustifiable and sometimes undocumented risks undertaken by the private banking sector. We take it as a given that the state should absorb the full cost of that risk and that the resultant “burden of adjustment” should be borne by public servants, welfare recipients, pensioners and businesses through local and national taxes and charges.

But while the gargantuan risks of private banks have now been fully socialised, the lesser risks of debt-laden citizens cannot be relieved by any public policy.

Suggestions that there should be a “Nama for little people” have been formally rejected in recent days by ministers. These same ministers have written a €2.7 billion cheque for the loan club operated by INBS. Patrick Honahan, the governor of the Central Bank, has described the Irish bank bailout as manageable. But is it tolerable?

PS: Alas Mary Harney, the minister for health, no longer has a political party to implement her finer ideas on economic policy. Outlining plans for a sell-off of VHI, Harney said it was not appropriate for the state to be simultaneously a participant in the health insurance sector and the regulator of that sector.

Shouldn’t the same philosophy then apply to airports, energy, broadcasting and — God forbid — banking. In broadcasting, the state is extracting a licence fee that acts as a direct state aid to one market participant RTE.

In electricity, we have price fixing by the regulator while the market share of ESB, one state firm, is being captured by Bord Gais, another state firm. The rates offered to depositors by subvented state banks far exceed the rates payable by truly private banks.

And if the ESB has been forced to cut its share of the electricity market, shouldn’t the same apply to the VHI? Sauce for the goose and all that.

Now fast forward to 2011 April and the situation is a lot worse

Ireland Cannot Afford To Pay Amounts Guaranteed

Default the Only option

Damien Kiebard in the Sunday Times Stated: “We are creating a debt crisis from which Ireland may never recover.” In his article of the 18th. April he proceeds to set out the total figures of Ireland’s real debt obligations. He points out that this data is not set out formally by the official economic body in the State (the ESRI) because it only focuses on published national debt liabilities. However the nature of the disastrous banks guarantee granted by Fianna Fail in Farmleigh in 2008 means that our debt obligations have in effect exploded. This is the main reason why Ireland Inc. is being shunned by foreign banks: our reliability rating have collapsed. When you read the schedule below you will realize why we are totally and utterly broke and until politicians address the fundamental issue of default all other talk is nonsense.

To summarise Mr. Kiebard’s findings on total “real debt” (in billions):

                                                                      Amount:               Cumulative:

1.       Ireland’s Foreign Borrowings:                   90                          90

2.       Borrowing over next 4 years:                      80                          170

3.       Bonds guaranteed to NAMA:                     40                          210

4.       Current /Future Bank Bailouts: *              50                          260

5.       Owed To Irish Central Bank: **                45                          305

6.       Owed to ECB: **                                         130                        435

Cost to service this debt at a rate of 5% =       20 Billion Euro Per Annum

Total Annual Taxes Collected In Ireland per Annum = 30 Billion Euro

Thus 66% of all our future taxes must be earmarked to fund our “real” debt exposure. This is the true picture of the Irish financial catastrophe.

* Based on the testimony of Mr. Alan Dukes, Chairman of Angle Irish Bank, To RTE live news January 2011.

** These funds were given to the Irish Banks to fund their “day to day” needs as cash being withdrawn could not be refunded on the open markets. Ultimately the Irish government is on the hook. When bonds are issued, to cover this liability, the interest on these financial instruments will be the responsibility of the Irish State (i.e. the Irish taxpayer).

Unless the government come to their senses and face reality Ireland hasn’t got the earnings ability to even pay the interest owed on these guaranteed sums, our country will continue to get sucked into a never-ending debt servicing quagmire that will enslave our people for generations to come

Face reality Ireland Cannot Afford To Pay Amounts Guaranteed: Default only option!

(NAMA) today published its Quarterly Report and Accounts

The National Asset Management Agency (NAMA) has today published its Quarterly Report and Accounts [The Report] for the Third Quarter2010 [1st July to 30th September 2010]. The documents were laid before each House of the Oireachtas by the Minister for Finance earlier today.

see full report here  NAMAPublishesThirdQuarterReportandAccounts


It would appear that NAMA are now dealing in Derivatives

The question is where does NAMA get the expertise to deal with Derivatives?

So you’re concerned that a property in NAMA is becoming a hazard….

By namawinelake 

URL: http://wp.me/pNlCf-16P

Limerick deputy Willie O’Dea will return to the new Dail next week though with a much reduced share of the vote in his Limerick City constituency. Given the carnage wrecked on the Fianna Fail party in this election, Willie might now be breathing a sigh of relief but only a few months ago Willie the barrister was nearly having conniptions worrying about a building site in Limerick owned by a Liam Carroll company, a site that was falling into disrepair and becoming a health hazard as well as a magnet for criminality. The site was likely to have gone to NAMA but what was troubling Willie was concern that if he made any approach to NAMA, that he would fall foul of the NAMA rules on lobbying. Former tourism minister Mary Hanafin also seemed unsure about NAMA’s anti-lobbying rules and the representations she could make to NAMA in respect of the troubled hotel sector. Neither politician was alone in their confusion so their colleagues in the Committee of Public Accounts addressed the issue last November 2010 when they were questioning the NAMA CEO and chairman. The following is an extract from the session:
Deputy Michael D’Arcy: I will touch upon the question of developers and banks being negligent. When I say negligent, I am referring to certain premises and sites being left in neglected states. NAMA’s role differs from ours, yet we are receiving reports from the general public concerning dangerous sites. Mr. Daly mentioned how it is an offence to lobby. To whom should a public representative go if he or she is receiving complaints about neglected estates that are in the possession of banks, developers or NAMA?
Mr. Frank Daly: When I referred to lobbying, I did not mean the normal type of information that a public representative might want to pass on to NAMA. There would be no difficulty in that respect.
Deputy Michael D’Arcy: If the information is of that nature.
Mr. Frank Daly: Yes.
Mr. Brendan McDonagh: We would welcome it. If people can give us information, we can take matters up with the borrower directly to determine the situation. We have noticed that everyone assumes every estate in a neglected condition is NAMA’s, but many of them are not or they are funded by other banks.
Deputy Michael D’Arcy: Many of them are NAMA’s.
Mr. Brendan McDonagh: I accept that.
Deputy Michael D’Arcy: Clarification is good. People seem to be terrified to ask NAMA a question for fear of prosecution.
Mr. Frank Daly: No. That is not lobbying. Lobbying is when someone tries to influence a decision of NAMA for personal benefit. Passing on information is not remotely like that.
One site that has received widespread attention has been 16 Moore Street in Dublin, scene of the signature of the surrender order which put an end to the 1916 Rising. There is a campaign to preserve the building which is earmarked for demolition as part of NAMA Top 10 developer, Joe O’Reilly’s redevelopment of the area. The campaign has gained some traction with the involvement of descendants of the participants in the Rising including James Connolly Heron, the great grandson of effective commander in chief of the Rising, James Connolly. There is a Facebook campaign which has attracted over 4,000 members, in the Oireachtas politicians have questioned the redevelopment and in January 2011 housing minister Michael Finneran made a statement in support of the group and there has been a letter-writing campaign. The building itself looks practically derelict today and there are concerns for its safety.
Another group is concerned at the deterioration of the former Hume Street hospital just off of St Stephen’s Green in central Dublin which was to be developed by Michael Kelly whose loans might now be in NAMA. And up and down the country there are many new developments which stand unfinished and there are other redevelopments which have stalled with the implosion of the property bubble. So what can you do if you have concerns, particularly if you believe the property is subject to a loan taken over by NAMA?
(1) You can contact your local council
(2) You can contact NAMA but you’re likely to get a response similar to this one received from NAMA by supporters of the Save Hume Street from Destruction  campaign:
“Please be advised that the National Asset Management Agency acquires loans and not the assets underlying the loans. Accordingly a property underlying a loan acquired continues to be the responsibility of the debtor. Your email makes reference to section 141 of the Agency’s Act [grants rights to NAMA to enter property secured by a NAMA loan, for the purposes of securing the property]. Please be advised that NAMA is aware of the various rights available to it pursuant to the terms of the NAMA Act and will exercise such rights, where appropriate and at its discretion. Please be advised that the National Asset Management Agency is statutorily obliged to keep confidential all information in relation to the debtors whose loans it has acquired and can’t confirm or deny whether any specific asset has been acquired.”
(3) It seems that you might be able to meet with NAMA. The 16 Moore Street campaign group is reported to be meeting with both the NAMA CEO and chairman on Thursday this week and no doubt they will let us know the outcome through their Facebook page.
(4) You can contact the developer or the bank if you have the details
(5) You can contact An Taisce if the building is listed (your local council should be able to help with establishing the building’s status)
(6) You can contact the Gardai with complaints of criminal behaviour
(7) You might consider writing to the press, for example to Frank McDonald the Environment Editor of the Irish Times
(8) You can consult the Derelict Sites Act 1990 and the Planning and Development Act 2000 to see if there is any action you can take
Remember that NAMA has a commercial remit – we all want it to make a profit. So it might be asking too much of NAMA to expend time and money on a property that may be demolished eventually anyway. That said, as the Moore Street campaign shows, you can get NAMA’s attention if you have the support backing you up.
This entry will be updated with further news from the Moore Street campaign and others and with news of hazardous NAMA sites.


URL: http://wp.me/pNlCf-16P

NAMA under Fine Gael: drastic changes expected

By namawinelake 

“A terrible noise exactly like thunder was heard in the outer room of his apartments : it was the crowd of courtiers deserting the antechamber of the dead sovereign to come and greet the new power of Louis XVI”
This was the account given by Marie Antoinette’s chambermaid of the immediate aftermath of the death of Louis XV – all the courtiers and hangers-on were making a mad dash from one end of the palace where the king had just expired to the other end to ingratiate themselves with the successor. And whilst I wouldn’t want to pre-judge the outcome of the voting count today, I would be shocked if anyone other than Enda Kenny was to be our next Taoiseach and Michael Noonan the next Minister for Finance. And I would say the ingratiating started many months back.
Of interest here is the fact that the FG director of elections for Limerick (Michael Noonan’s constituency) is none other than insolvency expert Brian McEnery of Horwath Bastow Charleton . Brian also happens to be one of NAMA’s nine board members and I would imagine that Michael Noonan is very well briefed indeed on the challenges facing the agency. And it will be the Department of Finance that has most political say in how NAMA operates in future, though other ministries like the Department of the Environment Housing and Local Government and Justice and Law Reform will also have a role to play.
So what changes can we expect at NAMA:
(1) Personnel. NAMA is probably most associated with its chairman Frank Daly and CEO Brendan McDonagh. Sections 22 and 40 of the NAMA Act provides the Minister for Finance with wide discretion as to the bases for removing the incumbent NAMA CEO and other board members including the chairman. Will FG want a change of personnel. Have some already ingratiated themselves to the new administration and convinced the putative Minister for Finance that a different set of hands would do a better job? There are certainly rumours in this area.
(2) Stopping NAMA 2: “We do not believe that transferring the land and development loans of Irish banks of less than €20 million to NAMA is in the best interests of the Irish economy” FG has said that it will stop the transfer of the sub-€20m exposures from AIB and Bank of Ireland to the agency. What that immediately means is that the stress tests presently ongoing will need examine the values of some €12bn of sub-€20m loans.
(3) Outsourcing: “We will force NAMA to outsource management of at least 70% of its assets to 3-4 competing private asset management companies” FG is keen to get third party asset management companies to take on NAMA’s loans. Indeed a long-held concern on here is that NAMA with 100 staff is ill-equipped to directly handle 175 developers (which might represent 5,000 development companies and 20,000 projects) and their €50bn of loans at par value. On top of this NAMA must manage the banks and Capita with their dealings for smaller value loans. Capita has a long and coloured history of ingratiating itself with parties in power.
(4) NAMA strategy: remember it boils down to the six actions (sell, lease, manage, develop, demolish, mothball). It seems there is a clamour for NAMA to generate more sales. These are likely to be in the UK and elsewhere abroad though NAMA needs to be careful about opportunists who expect a “NAMA knock-down”. But I expect there will be more sales here and given the condition of the market, I expect sales at levels not seen before, bargains some might say but that would be to ignore the distressed condition of the existing market which is being artificially distorted without true price discovery.
(5) Transparency: “The details of all non-performing loans acquired by NAMA will be available for scrutiny on a Public Register”
(6) Paddy McKillen’s loans: NAMA was supposed to have made a decision whether or not to proceed to acquire Paddy’s loans last Wednesday. And we are still waiting for the Supreme Court to issue its determination on the three outstanding strands to Paddy’s appeal (to do with the fairness and constitutionality of NAMA and its procedures). Will Michael Noonan decide that Paddy’s loans will destroy value at the banks if transferred? Will he persuade NAMA to release its grip on Paddy’s and other objectors’ loans?
(7) NAMA report and accounts for quarter three, 2010 which were delivered to outgoing Minister for Finance, Brian Lenihan on 31st December, 2010. Will Michael Noonan now ensure they are promptly published?
(8) Dismantling upward-only rent reviews in commercial leases. This manifesto commitment is really rattling the property industry that sees 20% declines in commercial property values and a repulsion of investors fearful of those declines. At the extreme on the other hand, certain retailers and other commercial tenants are literally praying it happens quickly because with existing rent levels their businesses will die. Whatever FG does, it needs to do it decisively and clearly. Otherwise this uncertainty of this Sword of Damocles will hurt the property industry and do nothing for commercial tenants.
Of course the bigger challenge facing the new Minister for Finance will be dealing with the national debt burden including a renegotiation of the IMF/EU bailout deal, the restructure of the banking sector and dealing with the results of the stress tests ongoing at the banks. But I would expect the Minister’s fingerprints to become transparent on the operation of NAMA within days.

Source: URL: http://wp.me/pNlCf-15X

Is it right that the State must pay 5.8% on bailout funds whilst NAMA is lending billions to developers at 3%?

NAMA SPV structure

Image via Wikipedia

By namawinelake

Whilst Minister for Finance, Brian Lenihan continues to exhibit signs of schizophrenia with his stance on the cost of our bailout funds from the EU/IMF (5.8-6%), telling Opposition politicians only last week that it was not possible to renegotiate the interest rate of the EU element and then later claiming that it was possible, there is seemingly a scandal going unnoticed with NAMA developers being advanced funds at rates significantly below the rate that we, the nation, must bear.
Last Friday, Britain’s Property Week reported that Paddy McKillen’s Maybourne Group had been given an extension of two years to repay GBP £660m (€784m). The loan was reportedly due to be repaid by the end of last year and indeed it seemed as if the second part of last year was one long scramble by Maybourne to find a financing partner – Deutsche Bank, Westbrook Partners, Northwood were all reported to have had talks with the luxury hotels group about refinancing the loans that were due for redemption to banks which include Bank of Ireland and Anglo Irish Banks. If the Property Week story is correct then it was NAMA that recently green-lighted the extension of the loan for two years.
This is on some levels a curious development as Paddy McKillen has been locked in a bitter legal dispute with NAMA for the past six months – a dispute which Paddy comprehensively lost in Dublin’s High Court but which is presently awaiting the outcome of an appeal to the Supreme Court which was held before Christmas. The curiosity is that Paddy seems to be dependent on the grace of an organisation which he is litigating against. It seems that NAMA has not yet absorbed Paddy’s loans pending the outcome of the Supreme Court appeal.
What was not disclosed by Property Week was the interest rate payable by Paddy on the GBP £660m of borrowings. However NAMA CEO Brendan McDonagh has previously stated (“those loans would typically be priced at a six month EURIBOR rate plus a margin, typically 2% approximately”) that NAMA developers were typically paying interest at ECB + 2% (that is 3% at today’s rates). If, and to stress we do not know in the present case, the interest rate charged to Paddy on the best part of a €1bn facility is 3% and on the other hand Ireland must pay 5.8-6% to the IMF/EU for the funds to bailout Anglo in particular and potentially Bank of Ireland, which is flouncing around at the moment ahead of its deadline in 40 days to raise €1.5bn (not to mention pay the NPRF €214m interest on its preference shares “investment”), then is it not scandalous that, going forward, the nation subsidises this developer to the tune of €22m per year (5.8% – 3% * €784m).
NAMA of course was intending to raise up to €5bn to fund developments and working capital. However its funding plans were apparently put on hold following the freeze-out of the State in raising finance late last year. It is not presently clear how NAMA will raise this development funding and the agency seems to be relying at present on some loan repayments from borrowers to enable it make new advances to selected borrowers. What rate is NAMA charging on these additional advances and does it mean that if NAMA (which is effectively state-owned) is charging less that the State is paying to the IMF/EU that we are again subsidising developers?
Arguably variable rate mortgage lenders paying less than 4% at present are also being subsidised, though it seems likely that lenders will start raising their standard variable rate in the near future with Permanent TSB being the first tipped to raise their rates by 0.5% from 4.19% to 4.69% with others expected to follow suit. There are some 792,000 mortgages in the State with some 271,000 standard variable rate (407,000 trackers and 113,000 fixed). So standard variable rate mortgage holders might also be receiving a subsidy which is apparently fast reducing but that still leaves well over 80% of the population not receiving any subsidy.

source:URL: http://wp.me/pNlCf-Xc



Again we catch Lenihan and Co giving support to their pals in the building Industry having bailed out the bondholders and the bankers closer to home he is still looking after the chosen few .His conduct in the last few days stabbing his so called colleagues in the back with regards to the Cowen confidence vote only shows that this man is a true Slievieen as we say in the west (not to be trusted)A lifetime in a political party like Fianna Fail where your co members and colleagues are more dangerous to your prospects of staying in the Dail than the opposition political parties. There seems to be a culture of mistrust and Fear of been out done!

Allowing people like this to run our country is only asking for disaster to happen. Over the last two years the Irish Nation have experienced the largest fraud in the history of the state and this NAMA con job continues to fleece us the taxpayers and its all down to this conman who clearly cannot be trusted when he cannot be relied upon when he gives his word even to his so called pals in Government. The Greens have now woke up to this and are looking now to get out all too late I’m afraid!

We must reinvest the State with men and women who speak the truth and act exclusively in the interests of the people

Brian Cowen‘s troubles are deepening by the hour. The consultation process is little more than theatre. His survival is on a thread [“hangs on a thread” or “is on a knife-edge”] as more and more of the facts emerge. The greatest step forward in this process of slow revelation of the truth I will shortly examine [we never find out “the greatest step forward” in the article]. First, however, there is [are?] Mr Cowen’s statements about himself.
He concealed more than he conceded in his lengthy statements to the Dail on Thursday [you mean Wednesday 12th, 2011 during Leaders Questions, no?]. He failed to answer crucial questions [any hints about what “crucial question”]. He concealed details of significant conversations about Anglo Irish Bank held with senior bank staff, board members and other politicians [what “details of significant conversations”?]. He denied exchanges that have been clearly claimed by others [what exchanges?]. He has since continued to prevaricate. This is what mr [Mr] Cowen has been doing, with little respect for the truth, over the last three years in respect of the banks, and notably, Anglo Irish Bank.
‘The Fitzpatrick Tapes’, the book which gives Sean FitzPatrick’s version of events and which led to this week’s confrontation in the Dail by opposition party leaders, had all the appearances of a tailor-made script for the Taoiseach, giving him three events that he could easily answer [just what does that mean, how could he “easily answer” revelations of hitherto undisclosed meetings/conversations] (though nothing was easy about the answers he gave): the St Patrick’s Day phonecall; the game of golf; and the Anglo Irish Bank board dinner [which dinner? the one at Heritage House in April 2008?]. Whatever one may think about the truthfulness or otherwise of the Taoiseach’s account, it cannot be challenged further without forensic investigation and testimony under oath. [really so posing what many might consider common sense questions at the next Leader’s Questions wouldn’t challenge it further?]
Many people in Ireland today would like to see that kind of investigation replacing the shambles in the Dail as Mr Cowen, more or less successfully, indulged in political rhetoric, insults, jibes and managed to put over the claim that, on all occasions summarised above, nothing was said about the crisis facing Anglo Irish Bank [“all occasions” – well this is just plain wrong, the Taoiseach has admitted that the St Patrick’s Day phonecall concerned the Anglo share price and Sean Quinn’s shareholding – surely that was about the “crisis facing Anglo”?]
 last November and before, Mr Cowen’s claim was that he first heard of the problems in Anglo Irish prior to March 2008 [this sentence doesn’t even make sense – does the writer mean that Mr Cowen claimed that he only first heard of problems in Anglo in March 2008?]. He sought to rubbish the story on grounds of the anonymity of the source. t[T]oday, the source is known to be David Drumm, and his words ring as true as they did then, with the added advantage of his name being behind them.
In that November 6 [should the Independent not have a house style for representing dates and if so shouldn’t the style be “November 6th”?] article, I said that Mr Cowen was at an Anglo Irish board dinner in April of that year [2008 presumably?] where the discussion was exclusively about the problems faced by the bank.
I outlined the role played by Sean Quinn, of Quinn Insurance. Quite openly and deliberately, in Mr Cowen’s presence, the discussion [at the dinner in April 2008?] was focused on these financial difficulties. These were seriously aggravated by heavy gambling at the time with “Contracts For Difference”, which ultimately came to represent a quarter of Anglo Irish Bank shares.
On that occasion, according to Mr Drumm, Mr Cowen promised intervention with the National Treasury Management Agency (NTMA) in order to get them to put deposits with Anglo. However, the then head of the NTMA, Michael Somers, has said [yesterday?] that no such request was made [by Brian Cowen, what about by others?]. The NTMA did not intervene [is this true, isn’t it the case that the NTMA did in fact recommence placing deposits with Anglo – Brendan McDonagh at the Cantillon School in September 2010]. There would have been even greater [even greater than what?] impropriety for the Finance Minister — knowing what he knew then of the perilous state Anglo Irish Bank faced — in taking the unprecedented step (which is now denied) of applying [what do you mean by “apply”?] to the NTMA. The full truth on this [aah, so we don’t have the “full truth” – what are we missing? Isn’t all we have at this stage suspicion?] would clarify the hopelessly compromised way in which we do business in this country.
I made clear in that article, based on Mr Drumm’s testimony, that the Financial Regulator, who has been generally, if inaccurately, characterised in the media as having been asleep at the wheel, was in fact in close contact with the bank. His hand was stayed, however, by sustained protection of Mr Quinn. Fianna Fail, including Mr Cowen [this is an amazing revelation, where’s the evidence?], were lobbying for Mr Quinn. The Financial Regulator knew that Mr Quinn was taking money from his insurance company and that this was illegal on two counts [again this is amazing, why has Sean Quinn not been arrested or charged with something which is being stated without qualification to be “illegal”?]. However, Mr Quinn was “untouchable”. Yet what he was doing represented death for Anglo Irish Bank.
The Financial Regulator should have come down heavily with regulatory decisions but failed to do so [what decisions?]. Mr Quinn was allowed to take money from his insurance company and gamble it through the bank. Anglo Irish Bank facilitated the placing of the Quinn stake and then part-funded it [part-funded? it seemed from Paddy McKillen’s testimony at the High Court last October 2010 that Anglo had not only fully- funded the purchase of shares but the funding was on a full non-recourse basis to boot].
To demonstrate how up to their necks the Financial Regulator’s office were before the placing, at one meeting Pat Neary told a member of the bank’s board that Sean Fitzpatrick was talking too openly about the Quinn stake [how credible is this? Sean Fitzpatrick was the chairman of the board and was presumably at the banks’ board meetings. Why did Pat Neary not say this directly to Sean Fitzpatrick’s face? Are there minutes to these board meetings which would evidence this?] . This member was told to tell him to “shut his mouth”. It was alleged that if it got out “there could be run on the system”.
Mr Cowen refused to answer these and other significant points at the time [last November 2010 presumably] on the dubious basis that they were ‘anonymous’. This anonymity was required at the time by my source. However, it is quite ludicrous to suppose that Mr Cowen did not know the source.
Even changing the Government will leave us with a huge burden of reparation. [true but it might change the culture that “bred the carbuncle”]
We must reinvest  the State with men and women who speak the truth and act exclusively in the interests of the people.

full article source: http://wp.me/pNlCf-Wb

Comment :

This is why we have all over the country now new independent movements like our Residents Movement for Political Change .We are convinced that changing the personal in government with more of the same established gombeen politicians will achieve nothing whilst they will all clam to want to change politics the truth is they have a vested interest to keep things as they are because of their collection of entitlements the current system allows them to collect!

You cannot have real change using the same old corrupt political parties the corrupt system has established! You must have new independent community movements that have no connections to the current corrupt political system ad that have at their core values that will route out cronyism and gombeenism. For real change we must put new men and women who speak the truth and act exclusively in the interests of the people and not is the interests of out dated, clapped out political parties that have only looked after their own office holders by placing them in plumb jobs here in Ireland and elsewhere in the world. Every time they come on to the radio to discuss policies the end up blaming each other for the problems of the country .Just listen to them blaming each other for past and present failures that have left the taxpayers paying for their incompetence.

Voting for people from each of these political parties will only keep the twiddle dumb and twiddle Dee political system in place and the same old codgers will feather their own nests with still more perks and pensions .Stop this gravy train from taken off again in the next Dail for God sake!

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