BoI, Nationwide dispute severe NAMA discounts

[ang]

Bank of Ireland and Irish Nationwide are the two lenders disputing the first loan notifications sent out by NAMA amid indications that the society's discount on its first tranche will top 40pc.

[/QUOTE]

Security on several sizeable loans has been described as inadequate by NAMA and as a result these loans have attracted severe discounts

Why are we even taking these loans if the security is inadequate. Surely if the banks didn't bother to secure their "investment", then, that is their problem, not ours.

http://www.independent.ie/business/i...s-2107684.html

[C. Flower]

Bank of Ireland and Irish Nationwide are the two lenders disputing the first loan notifications sent out by NAMA amid indications that the society's discount on its first tranche will top 40pc.

Why are we even taking these loans if the security is inadequate. Surely if the banks didn't bother to secure their "investment", then, that is their problem, not ours.

http://www.independent.ie/business/i...s-2107684.html[/QUOTE]

There's been a year and a half since the Banks Guarantee for personal guarantees and other collateral to slip down the back of the filing cabinet or otherwise get mislaid. We've heard enough from individual developers to know that banks were throwing money at clients from 2005-7: overvaluations of properties that were then used as collateral was going on the whole time. That phony collateral was then used to buy grotesquely overpriced land.

I will be surprised if there is 25% real collateral against this stuff.

It appears that the EU is watching this. The other cause of concern is this

Opponents of NAMA have also raised concerns over the timeline being used to value NAMA loans. Karl Whelan, the UCD economist, yesterday drew attention to the decision to value loans at November 2009, rather than later when prices have in most cases declined further.

Prices are of course still falling and have a way to go.

[ang]

Yes the banks have had a lot of time to "prepare" for this transfer.
I do hope the EU are keeping a very close eye on this. I'm also hopeful that Eugene Regan will be ensuring the EU are keeping scrutiny.

Karl Whelan has good reason to be concerned, the estimate for the backdating of the loans is 5bn. We do have a thread here on that.

[ang]

The banks will continue to fight the discounts of 35%-40% as they fear the prospect of being nationalised, the bigger the disount, the bigger the recap.

With the sort of discounts now being projected the NPRF is about to be raped.

We in all probability will become the "proud" owners of a few more zombie banks.

I wonder if the two Brians have any problems getting to sleep at night ?

[C. Flower]

The banks will continue to fight the discounts of 35%-40% as they fear the prospect of being nationalised, the bigger the disount, the bigger the recap.

With the sort of discounts now being projected the NPRF is about to be raped.

We in all probability will become the "proud" owners of a few more zombie banks.

I wonder if the two Brians have any problems getting to sleep at night ?

Was it Christmas 2008 that the three banks could have been bought for about 4 billion ? - If we had wanted them.

[ang]

In 2007 BOI had a value of nearly 19bn. Share price at that stage was around 18.80.

By Feb. 09 the share price had dropped to around 13cent at one point, so the bank was practically worthless.

Yet you had advisors from the DOF (Alan Ahearne) and the Finance Minister himself, blatently telling us that the two big banks (AIB&BOI) would not be nationalised as it would damage our international financial reputation and we would lose investors.

So keep the investors and sink the economy.

[Xray]

If they dont want the offer on the table it should be immediately removed from the table.