What is truth?

Posts tagged ‘National Treasury Management Agency’

Gamekeepers turned poachers


Here are some internal Dept of Finance documents on the move of a senior civil servant from the Department of Finance to Bank of Ireland.

Michael Torpey, who was employed on a salary of €200,000-plus annually, was transferred to the NTMA for three months and told not to work in his area of expertise – as part of a ‘cooling off period’.

He was asked not to return to his desk after Christmas because he had agreed to take a job in Bank of Ireland and was instead dispatched to the National Treasury Management Agency where, despite being an expert in banking, he was forbidden from working on any matter relating to it. Mr Torpey had been a key figure in the Department of Finance’s work on the restructuring of banks before being poached by Bank of Ireland late last year. He was due to begin work at the bank this month……………………………

full article at source: http://thestory.ie/2013/04/29/gamekeepers-turned-poachers/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+thestory%2FQSEJ+%28The+Story%29

Close shaves are called for

By Shane Ross:

MINISTER for Health James Reilly has one. NTMA boss John Corrigan has one

A Mercedes?

Union boss David Begg has one. Pensions supremo Brendan Kennedy has one.

A chateau on the Loire?

Siptu chief Jack O’Connor has one.

You’ve guessed it.

Bushy beards were once the preserve of the bourgeois brethren of the revolution. Today they are sprouting in the ranks of the chief executives of the semi-states. The super quangos are beginning to demand that no one worthy of the top job reveals the colour of his chin……………….

full article at source: http://www.independent.ie/opinion/columnists/shane-ross/shane-ross-close-shaves-are-called-for-3276633.html

God forbid, chinless wonders could soon become de rigueur in the private sector.

Last week were you startled to see yet another man with a beard on the platform, presenting the results of a report into fees and charges in the pensions industry?

Curb your enthusiasms?


So, the NTMA have issued a (welcome) note that Ireland is to resume auctions of T-bills. The note states that “on Thursday 5 July 2012. The NTMA will offer €500 million of Treasury Bills with a three-month maturity in its first such auction since September 2010.”

The details of the auction on 5 July are as follows:
• Auction size: €500 million.
• Maturity: 15 October 2012.
• Auction opens: 9:30 a.m.
• Auction closes: 10:30 a.m.
• Settlement date: 9 July 2012.
This is potentially (pending results of sale, namely yield, volume and percentage allocation to non-captive banks and funds) a minor positive for Ireland. Minor, because

  • Bills are NOT bonds – bills are short-term instruments, traditionally under 12 months maturity (bonds are over 1 year maturity).
  • Bills issued currently fall to mature within the period of existent EFSF funding programme, so in effect there will always be funds to cover these, short of a catastrophic collapse of the euro during the duration of the bills.
  • Issuance of bills has nothing to do in terms of signaling the state of public finances health or economic conditions health of the issuer, as both Greece (see here) and Portugal (here) have issued these during their tenure in the rescue programmes.
  • Portugal issuance (linked above

Figures reveal we are paying up to 6.48% on 10-year loans in the bailout!

By namawinelake

Figures supplied today by the National Treasury Management Agency (NTMA) show that Ireland has drawn down €22.36bn from the IMF/EU bailout agreed last November 2010. The figures show that the blended average rate of interest charged is 5.58% and that the funds are due for repayment between 5-10 years with a weighted average of 6.83 years.

full article at source  http://namawinelake.wordpress.com/2011/07/01/figures-reveal-we-are-paying-up-to-6-48-on-10-year-loans-in-the-bailout/


When the IMF\EU bailout was first announced I said that the interest charged was not 5.8% See here       http://thepressnet.com/2010/12/08/another-dark-day-for-democracy-in-ireland/

“Another point I want to make
is that the new loan from the IMF and the EU
is in fact costing us 7.3% if you take into account that we are in fact
subsidizing the funds from the IMF and EU by putting up the first 17.5 Billion
ourselves and there is no mention of the costs of setting up the loans and
subsequent charges .In any case even if you take it that the loans are 5.8% of
this 10 billion is supposed to go to recapitalize the banks and another 25
billion is in reserve so 10 billion is costing 5.8% to the banks.

Then presumably the banks are
to lend this money out to business and mortgage seekers at what interest rate?
It would have to be 5.8% plus the banks mark up of approx 2% .So the banks can
only lend these funds for 7.8% ??? Who can afford this penal interest when the
rates for every other European are 1% plus bank charge of .75% to 1.75%
interest! So we now have a Europe that is charging different interest rates in
different parts of Europe are we then looking at a break up of the Euro by the
back door.”

Taken everything in the above article from Namawinelake into consideration , I am not far off the mark!

Governor of Central Bank of Ireland claims Lenihan was “crestfallen” by EU stance on bondholders

By namawinelake 

This subject has been covered on the irisheconomy.ie website. This entry adds the transcript of the programme to highlight the precise words spoken by the governor. Also part 2 of “Burning the bondholders” will now be published tomorrow]
The under-rated Vincent Browne broadcast a special edition of his week-night programme on Friday night last as a memoriam to former Minister for Finance, Brian Lenihan who died earlier on Friday after a 2-year battle with cancer. In the “pole” seat, that is the one nearest Vincent was Patrick Honohan, the governor of the Central Bank ofIreland. Other guests included Minister Joan Burton and journalist Fionnan Sheahan. Vincent started off gently discussing Brian Lenihan with the guests in the stall seats. And then about 17 minutes in he got to Governor Honohan. And Vincent gently probed the governor for his memories of his dealings with the-Minister Lenihan. And for about four minutes, Vincent tenderised the governor. And having covered the tittle-tattle about how nice Governor Honohan’s office was, we had the following:
read full article at Source: http://namawinelake.wordpress.com/author/namawinelake/


Here in Ireland we are reluctant to speak ill of the dead .and so with reluctance I say this.

Mr.Lenihan RIP, has for the last few day been canonized by his well placed pals in Irish society .Of course politicians from all sides are falling over themselves in praising this man presumably expecting to gain some brownie points .The airwaves are stuffed with praise for this man and it is becoming nauseating to say the least .I became sick last Friday when the Live line went into overdrive and one would have thought they were talking about Mahatma Gandhi or mother Theresa

Speaking of Gandhi may I take this opportunity in reminding everybody of one of his quotes?

“There is no God higher that truth” Now this been the case I am compelled to try and bring the truth back into the light of day.

Our country is the poorer because of the incompetence of Mr. Brian Lenihan. This man is responsible for the many, many years of austerity that is now been forced on to the shoulders of ordinary decent people because this man sold his country out the international bondholders, gangsters and gamblers. Mr .Lenihan chose to save his pals in the building industry and the corrupt bankers rather that stand up to them and make them responsible for their own gambling debts. Mr.Lenihan became dethatched from the ordinary people of Ireland and he became aloof and drunk with the effect of absolute power, His membership of a very select group of individuals (The Golden Circle) caused him to turn his back on the people of Ireland as he chased applause and honours from forging shores. His mind-boggling incompetence along with his former crew members has cost this nation, our independence and sovereignty and in other times he along with the other members of the previous government would have faced charges of treason and would have been shot!

Ironically he was accused of economic treason not so long ago by members of the current government and these same people are now enthusiastly  carrying out the same measures as Lenihan and his band of misfits came up with 

So I guess Lenihan wasn’t the only economic terrorist we had or have now. The central bank governor hasn’t exactly been the sharpest tool in the drawer  either!

The lunacy of Government treasury management

 by Dr. Constantin Gurdgiev
 Namawinelake blog has an excellent post on the lunacy of Government treasury management exposed by the CBofI’s latest accounts –
 read it here.

On April 7, 1775, Samuel Johnson made his famous pronouncement: “Patriotism is the last refuge of the scoundrel”. This statement caught the chord with many other illustrious thinkers. Ambrose Bierce‘s The Devils Dictionary: “In Dr. Johnson’s famous dictionary patriotism is defined as the last resort of a scoundrel. …I beg to submit that it is the first.” In 1926, H. L. Mencken added that patriotism “…is the first, last, and middle range of fools.”

Whether one can separate a scoundrel from a fool or the first refuge from the last, in recent years we have seen Government officials who have exhibited all four attributes of false ‘patriotism’.

No doubt, the decision by the Irish Minister for Finance to instruct NTMA to deposit €10.6 billion of state money with the Irish banks were not supposed to be amongst one of them. However, motivated by a ‘patriotic’ desire to provide a temporary support for the zombie institutions, artificially increasing their deposits base, this was a significant mistake from the risk management point of view.

Irish banks are experiencing a severe liquidity crisis, as the latest figures from the CBofI clearly show (Table A.2, column E). Lending to Euro area credit institutions has risen from 30 April 2010 levels of €81.25 billion to the peak of €136.44 billion by the end of October 2010 and now stands at a still hefty €106.13 billion (April 29, 2011), down €8.37 billion on the end of March. That’s folks – our banks debts to the ECB. As far as banks debts to the CBofI itself are concerned, these have declined by some €12.64 billion to €54.15 billion March to April 2011. Chart below plots combined ECB and CBofI ‘assets’ that are loans to the Irish banks.
So the banks are still under immense pressure on the liquidity front.

As far as their solvency is concerned, BalckRock advisers estimated back in March 2011 the through-cycle expected losses in excess of €40 billion for just 4 out of 6 Irish ‘banks’. Although these relate to ‘potential’ losses, the likelihood of these occurring is high enough for the CBofI to provision for €24 billion of these.

Either way, Irish banks are not really the counterparties that can be deemed safe.

There is an added component to this transaction – under the deposits guarantee, the Irish Exchequer holds simultaneously a liability (a Guarantee) and the asset (the deposit) when Mr Noonan approved the transaction. Before that, the Exchequer only had an asset. In effect, balance-sheet risk of this transaction was to reduce the risk-adjusted value of the asset it had.

Lastly, the entire undertaking smacks of the Minister directly interfering in the ordinary operations of NTMA which is supposed to be independent of exactly such interference.

So whether Minister’s ‘patriotism’ of supporting Irish banks was the first or the last resort or the first and the last range, the outcome of his decision to prop up banks balance sheets with artificial short-term deposits was an example of a risky move that has cost NTMA its independence and reputation. The move achieved preciously little other than destroy risk-adjusted value of Government assets. Not exactly a winning combo…

NAMA recruiting investigators to check out developers’ finances

By namawinelake 

source :http://wp.me/pNlCf-1l9

Although the advertisement is not currently showing on the NAMA website under its recruitment section, the Irish Independent today reports that NAMA is, in fact, recruiting an unspecified number of “forensic managers and analysts” whose role will be to “verify and substantiate the credit standing of NAMA debtors”. The role will also involve liaising with unspecified third parties.
The roles will be based in Dublin and the principal duties are understood to include undertaking and overseeing “forensic and investigative searches to verify debtor credit positions”. The person specification for the role says that candidates are “likely to have a minimum of 3-4 years’ investigative/forensic experience”. Any prospective candidate must comply with section 42 of the NAMA Act which says:
“(2) Before employing or otherwise engaging a person to be assigned to NAMA under subsection (1), the NTMA shall ascertain to its satisfaction that the person—
(a) is of good character and has not been convicted of any offence likely to render him or her unfit or unsuitable to perform the duties that the person is required to undertake or is likely to be required to undertake,
(b) has not been disqualified or restricted from acting as a director under the Companies Acts, and (c) has no material conflict of interest, whether actual or potential
(3) Before the NTMA assigns a member of its staff to NAMA under subsection (1), the NTMA shall ensure that he or she provides a statement of his or her interests, assets and liabilities to the Chief Executive Officer of NAMA and the Chief Executive of the NTMA in a form that the NTMA specifies”


 I here that Nama moved to seize control of the properties belonging to developers Ray and Danny Grehan yesterday after, it is understood, they failed to meet some of the terms of a plan agreed with the agency.
Nama appointed receivers Paul McCann and Michael McAteer, of accountancy firm Grant Thornton, in a bid to recover a €650 million debt owed to the State.
The properties include the former UCD veterinary college site in Ballsbridge, Dublin, which Glenkerrin bought for  €171.5 million in 2005. Glenkerrin also developed The Grange, a luxury apartment complex in Stillorgan, Co Dublin which is still half empty and is rumoured to be considered as a target for social housing by the council.

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