NAMA Bill

[Dreaded_Estate]

http://www.oireachtas.ie/documents/b...009/B6009D.pdf

[Dreaded_Estate]

Section 47

47.—(1) NAMA or a NAMA group entity may, whenever and so
often as it thinks fit, create and issue subordinated debt securities of 10
such class or type as it specifies

(a) bearing interest at such rate as it thinks fit, or no interest,

(b) for such cash or non-cash consideration or deferred consideration
as it thinks fit, and

(c) subject to such terms and conditions as to repayment, sub- 15
ordination, repurchase, cancellation or redemption or
any other matter as it thinks fit.

(2) Subordinated debt securities issued under this section shall be
used only for the purpose of providing part of the consideration for
the acquisition of bank assets in accordance with section 89.

(3) To the extent that the terms and conditions of the subordinated
debt securities (including the terms of subordination) are referenced
to or based on a measure of financial performance, the
measure shall be the financial performance of NAMA in totality and
not any part or parts of the acquired portfolio.

(4) Subordinated debt securities may be subject to different terms
and conditions for different classes or types of those securities.

(5) The total amount of subordinated debt securities issued under
this section shall not exceed a percentage of the aggregate total portfolio acquisition value specified by the Minister by order. Such
securities will be issued to the participating institutions pro rata.

I wonder what percentage the limit will be set at




[/quote]

[feet first]

This is the most important piece of leg. ever to come before the Dail .

Low and behold FF and the Greens are playing politics with its publication

Can we trust these goons with an undertaking of this magnitude.

Even at this stage we are being hoodwinked as to the imput of the Greens Bla bla bla

Does this gov. have any respect for the intelligence of the people.???????????????????????

[ivnryn]

From the Indo:
I must live in a different universe because I thought that was the whole point of NAMA.
This does not look good for the taxpayer.

No, the point is that we guaranteed the banks. If we don't do something, they all formally go bankrupt and the bill will be sent to the FF government.

This way, the bill will still have to be paid, but over a number of years, and it will be harder to trace the exact cost back to FF.

[Propforward]

No, the point is that we guaranteed the banks. If we don't do something, they all formally go bankrupt and the bill will be sent to the FF government.

This way, the bill will still have to be paid, but over a number of years, and it will be harder to trace the exact cost back to FF.

can you join the dots for me so that i can understand where the banks go bankrupt and the government gets billed....

[ang]

Still nothing to force lending. What good is that to the economy ?

[ivnryn]

can you join the dots for me so that i can understand where the banks go bankrupt and the government gets billed....

That is what a guarantee means. The guarantee says that if a guaranteed bank owes someone money, then the bank must pay it. However, if they fail (due to bankrupcy, or any other reason), then the person who is owed money can go to the government and get the debt paid. The guarantee covers all deposits no matter how large and also any bonds that were issued by the banks.

A more reasonable approach would have been to cover deposits up to say EUR 100,000 and only cover bonds that were issued after the guarantee. It was at best crazy to give a full cover to the banks.

Now, the government could decide not to bother to pay when asked, but they put the reputation of the state behind the banks. If they don't pay, then it will be hard for the state to borrow money. (but even the, it still might be better not to pay).

The government have put us in a position where we must bail out any bank that is in trouble or destroy Ireland's internation reputation. (All the while demanding that people offer solutions rather than criticism of NAMA).

The gaurantee was designed to give the country no viable and reasonable way out of the situation. It is like a jailer asking the prisoner to stop complaining and work towards finding a solution to the fact that they are imprisoned, just after building the cell to make that impossible.