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Posts tagged ‘Mike Aynsley’

Should the transfer of Anglo’s remaining NAMA tranches be put on hold ?

from source http://namawinelake.wordpress.com/author/namawinelake/

Should the transfer of Anglo’s remaining NAMA tranches be put on hold pending clarification of Anglo’s total costs?
namawinelake | August 27, 2010 at 10:15 am
Anglo has transferred a cumulative total of €16bn of its NAMA-bound loans in tranches 1 and 2, leaving an estimated €20bn in its remaining tranches if the estimates in NAMA’s revised Business Plan and accompanying tranche 2 detail are correct (what introduces some doubt is the claim two weeks ago by the Anglo CEO Mike Aynsley that €2-4bn of NAMA-bound loans in the UK and US may be “reclassified” in agreement with NAMA).
If tranches 1 and 2 are anything to go by, NAMA will in future pay Anglo a Long Term Economic Value (LEV) premium of 10-12% of the current market value of the loans. So if €20bn is still valid as the face value of the remaining Anglo loans and they have a current market value of 45% of their face value, then NAMA will be paying €0.9-1.1bn above the current market value of the loans. That is a substantial sum of money to be gifting a bank whose future is being debated as we speak at the EU with a European preliminary view on the future of Anglo due in weeks.
The perpetual murmurs of disquiet about Anglo have grown substantially in volume this week. Standard and Poor’s downgrade of Ireland’s credit rating was predicated in part on their assessment of the increased cost of bailing out Anglo at €35bn. Last week in Beijing the Governor of the Central Bank broke the news that “Anglo may impose a NET [my emphasis] cost to the Government of about €22-€25 billion”. A net cost of course could be a gross cost of €35bn with €10bn recouped over time (eg through sale of a government stake in Anglo’s Newbank, redemption of NAMA bonds at face value rather than the accounting value which might assume a large discount). Trinity College economics professor Constantin Gurdgiev repeated his view that Anglo could incur losses of “€33bn in mid-range case, rising to €38.6bn in the worst case scenario”. It is not clear if these losses equate to a net cost to the State as there may already be provisions for these losses and Anglo has a (small) capital base. Today in the Irish Times, former Ulster Bank chief economist Pat McArdle suggests that, in an attempt to improve Ireland’s credit rating “we could try to give greater certainty regarding the Anglo bailout cost, possibly by postponing all other transfers to Nama until Anglo is taken care of.” Other calls this week came from the domestic politics (FG’s Finance spokesman, Michael Noonan calling for a debate at balance sheet level to assess the different options for Anglo) and the Financial Times editorial which today says “it is time to staunch the bleeding. As Irish state guarantees near their expiry date, some banks will not be able to refinance their balances. The government should prepare insolvent banks for forced debt-for-equity swaps, which would instantly recapitalise the banks in question and cap the government’s exposure”. This blog has expressed concerns about the non-NAMA losses at Anglo and whether these are being realistically assessed at present.
Last weekend NAMA paid Anglo a LEV premium of €270m on its latest tranche of loans, a considerable gifted sum in normal times but small in comparison with the expected €1bn of LEV premiums on the remainder of Anglo’s NAMA loan book. Has the tipping point now come whereby Anglo’s future is consensually decided (consensus impedes speed of action but the sums involved have grown to state of war proportions for the Irish state)? And until Anglo’s costs are clarified, should NAMA put the transfer of future loans on hold as these future transfers will involve the State paying substantial sums in excess of the true value of the loans.

Comment:

We did not have to wait for the past 18 months to expire to suddenly find out that NAMA was going to end up paying way over the odds for the various toxic assets from the Banks, never mind the Crap it was getting from ANGLO IRISH BANK
The simple fact is that from the start we the ordinary Joe soaps could smell that a sweetheart deal has been done by the Fianna Fail Government with the establishment of what is now openly been acknowledged as the largest bail out in Irish corporate history and all for the benefit for the golden circle, the chosen few, the cronies and leaches and hangers-on of the Fianna Fail party

This is now seen as a fraudulent transfer of wealth from the citizens of Ireland to a group of irresponsible gamblers, with the help of economic traitors within the government and a totally incompetent regulatory authority that at this stage one must ask if it was designed to be so, in order to facilitate this fraud in the first place !

It is the duty of every citizen to make sure that the next tranche 3 of toxic loans from Anglo-Irish Bank should not take place and indeed an independent international enquire should be set up to investigate exactly who were the beneficiaries of the billions that have already gone into this toxic Toilet, who was responsible for the approval ludicrous high valuations put on these worthless toxic assets and whether there was a conflict of interest at any level
The Fraudulent actions of Government ministers to be exposed and all individuals brought before the courts and jailed on convictions, no golden handshakes or beefed up pensions to be paid out to any individuals found to have felicitated in the cover-up of fraudulent actions or helped to hide relevant information that would have expose this monstrous fraud on the Irish taxpayers
This continued drip ,drip feed of lies must be stopped and the truth must be put before the people
In the form of a general election or a referendum on the issue
I call on all the opposition parties to declare that they will not honour any of the fraudulent guarantees given to the international bondholders by way of an extended government guarantee given in the first place without the consent of the Irish people
I dispute the authority of any government to place me and the hundreds of thousands of its citizens into a kind of financial enslavement to corrupt financial institutions that then are enabled to legally rob me of my family home, my savings, and my prosperity as a consequence of their corrupt practices.
As a result of the establishment of NAMA the countries financial institutions have effectively sucked dry the financial resources of the country for the next generation.
Thus robbing me and the majority of the countries citizens the necessary means to independently provide for their family’s and so forcing families to become dependent on the state for handouts
These actions are a clear breach of the rights guaranteed to every citizen of Ireland by the Irish constitution (see PDF Here Constitution of Ireland) and so renders the establishment of NAMA illegal without first haven put it to a referendum to the citizens of Ireland
Please stand up for our constitutional rights , get active and  put an end to this  madness

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.

Analysis

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

Mr.Aynsley what are you doing?

 

Anglo Irish Bank Appoints Mike Aynsley as Grp Chief Executive

 

According to the news wires Mr.Aynsley has over 30 years experience in banking and financial services consulting in Australia, New Zealand, the Asia Pacific Region and the United Kingdom.

Mr.Aynsley will start on Sep. 7 and the current executive chairman O’Connor will revert to position of non-executive chairman when Aynsley joins bank.

This is of course all window dressing what we have in Anglo is a Dead Bank a corrupt Bank devoid of all creditability and one must ask what the hell the government is doing or more to the point who are they so determent to save

Why of course the ten members of the Golden Circle

They haven’t gone away you know!!!!!!


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