RBS comment on Nama

[Dreaded_Estate]

FT Alphaville Long Room

Interesting comment about NAMA from RBS. Looks like the government is going with the head in the sand approach.

***Ireland: Nama back in the headlines***

Expect to see increasing numbers of stories on the Nama valuation proposals etc essentially indicating that the Irish govt/Nama has an unenviable Hobson's choice; it can either overpay for commercial real estate or value it more accurately thus forcing the banks to take bigger hits transferring the loans to Nama and thus require more capital which is likely to be only forthcoming from the govt and thus send the banks into the questionably beneficial position that is majority government ownership. Lots of 'thuses' there but that's the causality.. This story will run for a while but I rather think a Rhadamanthine government position, while politically preferable, is practicably untenable and that the so-called compromise will be the banks take the full 30% haircut - more than has been indicated to date - and the government turns a blind eye to the true value of CRE. It's worth noting that the IPD maintains that average CRE has fallen 53% from peak with development land off 80%.

[consultant]

Thread should read RBS take on FF/Lenny thanks to support from the Gormless Geeks.

[hammer]

€77 loans
50% haircut
WIPEOUT

[Dreaded_Estate]

€77 loans
50% haircut
WIPEOUT

Probably about what the loans are worth.

[bananarepublic.ie]

FT Alphaville Long Room

Interesting comment about NAMA from RBS. Looks like the government is going with the head in the sand approach.

Why any body would take FT/RBS as seriously now a days. RBS is failed bank, bought the crap bank now funded by British Tax payers while New labour printing money recklessly. How could these guys can analyse, NAMA. It is like Anglo-Irish giving lectures about conservative lending or E & Y lecturing about "How not cook books". Its laughble.

Westren Banks comments on finance is laughble. It is epitomy of failures in financial history.

Yes NAMA is bad. But given the option do you want NAMA or IMF? which one you choose?

[Dreaded_Estate]

Yes NAMA is bad. But given the option do you want NAMA or IMF? which one you choose?

It isn't a choice between the IMF and NAMA?

[bananarepublic.ie]

It isn't a choice between the IMF and NAMA?

Then what?
I am not big supporter of NAMA because it is flawed every one knows. But without NAMA how can banks can be cleansed? Govt. dont want nationalise but they just want fund. Govt. cant prosecute banking fraud. Name sake regulator, Auditors here can cook books makes enron scandal primary school maths. thus eroding repo in international market unlesss banks cant have clean balance sheets. No body lends to them internationally except IMF with preconditions. But with NAMA we can go back and borrow money.

[Bi ciuin]

IMF for me.

[Dreaded_Estate]

Then what?
I am not big supporter of NAMA because it is flawed every one knows. But without NAMA how can banks can be cleansed? Govt. dont want nationalise but they just want fund. Govt. cant prosecute banking fraud. Name sake regulator, Auditors here can cook books makes enron scandal primary school maths. thus eroding repo in international market unlesss banks cant have clean balance sheets. No body lends to them internationally except IMF with preconditions. But with NAMA we can go back and borrow money.

As I've said it isn't a choice between the IMF and NAMA.

Firstly, the IMF doesn't lend to banks who get into trouble it lends to countries.

Secondly, NAMA just moves the risk of the bad assets from the banks onto the country and taxpayer. By making the state more risky NAMA actually increases the risk of an IMF bailout of Ireland.

Not nationalizing is a government choice and makes the country worse off.

Charging people with fraud and all the other stuff you mention has next to nothing to do with IMF or even NAMA.