Why is NAMA taking the bulk of its loans from Anglo?

[Raketemensch]

NAMA is taking most of its loans from Anglo Irish, 26 billion to be precise. Why when NAMA is supposedly a vehicle to get banks lending to small businesses, is it buying the bulk of its loans from a bank that only lends to high net worth individuals and large property development companies? Has anyone any ideas?

[Digout]

Because SCAMA is a bailout for the lads in the Golden Circle.

[Digout]

Cowen dined privately with Anglo bank chiefs - National News, Frontpage - Independent.ie

[Malbekh]

NAMA is taking most of its loans from Anglo Irish, 26 billion to be precise. Why when NAMA is supposedly a vehicle to get banks lending to small businesses, is it buying the bulk of its loans from a bank that only lends to high net worth individuals and large property development companies? Has anyone any ideas?

I have tried to answer this in your previous (identical) post.

http://www.politics.ie/economy/11778...se-list-3.html

[Raketemensch]

Only by NAMA making the impaired loans from Anglo will the bank be capable of lending once again to Irish businesses. Of course whether it actually does so, remains to be seen.

Anglo is going through an evaluation process as to what it's going to be when it grows up. One thing it won't be is an institution lending to development companies. First part of this restructuring is reducing the workforce as in here.

The bank has to submit a comprehensive business plan to the EU/ECB later this month, only at that stage will we have an idea of what is planned. All I can tell you is that the original plan submitted to the government has since been redrafted owing to objections from EU regulators.

Only by NAMA making the impaired loans from Anglo will the bank be capable of lending once again to Irish businesses. Of course whether it actually does so, remains to be seen.

Fair enough. So we are giving 26 billion to an utterly busted state-owned bank in the frail hope that one day it may be able lend back some money to real businesses that have turnover right now?
It is pretty weak, let's be honest.

[Raketemensch]

Because SCAMA is a bailout for the lads in the Golden Circle.

Is that the stated reason? Actually, I wouldn't be all that surprised at this stage if it was.

[Malbekh]

Fair enough. So we are lending 26 billion to an utterly busted state-owned bank in the frail hope that one day it may be able lend back some money to real businesses that have turnover right now?
It is pretty weak, let's be honest.

Let me think about this for a second....yes.

In fairness, the bank has to continue thanks to the deposit guarantee scheme. I know figures have been pandered around that we would need to pay something in the order of €60b to the depositers, but I would suspect that the majority of the money is owed to the ECB.

[Eamonn76]

NAMA is taking most of its loans from Anglo Irish, 26 billion to be precise. Why when NAMA is supposedly a vehicle to get banks lending to small businesses, is it buying the bulk of its loans from a bank that only lends to high net worth individuals and large property development companies? Has anyone any ideas?

Well, €26 Billion out of 77. Nationwide is taking more billions again. Lenihan told McWilliams that AIB was worse than Anglo.
In a real country all of these banks and BOI would be under investigation.
And there would be a statutory independent inquiry.
The Anglo management may be the sacrificial offering for the sector. Seanie won't care - he is superrich whatever happens.

[Aristodemus]

In the immortal words of our former leader "it's enough to make cold spines run up and down your back"

[Digout]

In a real country all of these banks and BOI would be under investigation.
And there would be a statutory independent inquiry.

Your spot on there, yet here the FF corruption wagon rolls on and on and on.