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Thread: Undue diligence: €6 billion to go from NAMA to Anglo with no questions asked

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    Default Undue diligence: €6 billion to go from NAMA to Anglo with no questions asked

    Remember the promises about due diligence before spending our money bailing out bank investors? They are no longer 'operative' - NAMA is reportedly about to channel six billion euro to Anglo without performing any due diligence on the loan securities. This is public money that will presumably end up with Anglo's private creditors. David Clerkin has the story in the Business Post p3. The assurances that NAMA would ensure it gets value for money suddenly look even more threadbare.

    NAMA is to give six thousand million euro to Anglo without any advance examination of the quality of the loan security. In the jargon, no due diligence before handing over the public's money. This at a time when part-funded voluntary groups like Community Development Partnerships up and down the country are being weighed down with demands from government departments and quangos looking for them to account for every penny they spend.

    Panic move?

    Link

    Nama to issue €6 billion to Anglo in blind transfers


    As I post this, I am listening to Anglo Chairman Alan Dukes divert a discussion on the bank crash on This Week to talk about the budget deficit....

    Maybe someone in the studio will ask him why Anglo should get this six thousand million before due diligence. Due is there for a reason isn't it?
    Last edited by He3; 4th October 2010 at 11:05 AM.
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    Nobody intervened as Dukes pontificated about the budget deficit. Maybe the six billion was discussed before I tuned in to the show?

    God be with the days when Albert Reynolds and the country at large knew the value of six billion euro.
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

  3. #3

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    Thanks for your posts HE3 keep them coming.

    What about the regulator cant this issue be raised with him
    What about the opposition can noone request this info
    Lack of regulation and independent assessment is what has got us here in the first place - same old, same old.

  4. #4

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    The suggestion that NAMA could value and carry out due diligence on €19bn of Anglo (especially Anglo) loans in the next 30 days is risible. The EU Decision on 26th February, 2010 sets out the approved process for acquiring loans and it includes "(48) .. Before the actual purchase of the loans by a NAMA group entity ...iv. Provision by the participating institution of a legal and tax due diligence report;
    v. Determination of the current market valuation of all underlying property and
    assets by external valuers appointed and paid by the participating institution but
    with a duty of care to NAMA;"

    NAMA cannot transfer €19bn of loans in the next 30 days unless the EC waives the requirements set out in its Decision and if it does, it will be breaking its own rules on State-aid. Something has to give.

    http://ec.europa.eu/community_law/st...09/n725-09.pdf
    www.namawinelake.wordpress.com

    NAMA designed to be to property what the CAP was to agriculture - difference, food production is essential.

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    Quote Originally Posted by NAMAwinelake View Post
    The suggestion that NAMA could value and carry out due diligence on €19bn of Anglo (especially Anglo) loans in the next 30 days is risible. The EU Decision on 26th February, 2010 sets out the approved process for acquiring loans and it includes "(48) .. Before the actual purchase of the loans by a NAMA group entity ...iv. Provision by the participating institution of a legal and tax due diligence report;
    v. Determination of the current market valuation of all underlying property and
    assets by external valuers appointed and paid by the participating institution but
    with a duty of care to NAMA;"

    NAMA cannot transfer €19bn of loans in the next 30 days unless the EC waives the requirements set out in its Decision and if it does, it will be breaking its own rules on State-aid. Something has to give.

    http://ec.europa.eu/community_law/st...09/n725-09.pdf
    Yes, something has to give. At the moment all the 'giving' is by the public and when we drop the polite pretence, that is happening at the point of a gun. The posters who were calling for the builder in his truck at the LH gates to be shot show us that.
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    Quote Originally Posted by neutral_lurker View Post
    Thanks for your posts HE3 keep them coming.

    What about the regulator cant this issue be raised with him
    What about the opposition can noone request this info
    Lack of regulation and independent assessment is what has got us here in the first place - same old, same old.
    Don't thank me neutral_lurker thank the SBP and David Clerkin, part of the mainstream media that, with others, try hard to bring us this information.

    As NamaWineLake says, this would appear to be in breach of the terms of EU Decision. Maybe someone can confirm for us that this means it would be unlawful.

    Something - or someone - has got to give.
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    Quiet here isn't it?
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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    Quote Originally Posted by NAMAwinelake View Post
    The suggestion that NAMA could value and carry out due diligence on €19bn of Anglo (especially Anglo) loans in the next 30 days is risible. The EU Decision on 26th February, 2010 sets out the approved process for acquiring loans and it includes "(48) .. Before the actual purchase of the loans by a NAMA group entity ...iv. Provision by the participating institution of a legal and tax due diligence report;
    v. Determination of the current market valuation of all underlying property and
    assets by external valuers appointed and paid by the participating institution but
    with a duty of care to NAMA;"

    NAMA cannot transfer €19bn of loans in the next 30 days unless the EC waives the requirements set out in its Decision and if it does, it will be breaking its own rules on State-aid. Something has to give.

    http://ec.europa.eu/community_law/st...09/n725-09.pdf

    Lenihan climed that the EU had been advised of his new method.

    I wonder if they are sick of his spoofing yet

    In order to support the accelerated implementation of the plan for restructuring
    Anglo into an Asset Recovery Bank and a Funding Bank, the Board have agreed
    that Anglo’s remaining eligible bank assets will be transferred to NAMA by the end
    of October and that bonds will issue to Anglo in return on the basis of NAMA’s
    current estimate of their value. These loans will then be subject to due diligence
    and valued by NAMA on a loan by loan basis. If any adjustment to their value is
    necessary, it will be made subsequently. The EU has been advised of this revision
    to the valuation process for the remaining Anglo loans and I will be making
    Regulations to provide for it.
    http://www.nama.ie/Publications/2010...30Sept2010.pdf
    We have turned the corner.I commend this Budget to the House. Brian Lenihan, 9 December 2009

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    Quote Originally Posted by He3 View Post
    Remember the promises about due diligence before spending our money bailing out bank investors? They are no longer 'operative' - NAMA is reportedly about to channel six billion euro to Anglo without performing any due diligence on the loan securities. This is public money that will presumably end up with Anglo's private creditors. David Clerkin has the story in the Business Post p3. The assurances that NAMA would ensure it gets value for money suddenly look even more threadbare.

    NAMA is to give six thousand million euro to Anglo without any advance examination of the quality of the loan security. In the jargon, no due diligence before handing over the public's money. This at a time when part-funded voluntary groups like Community Development Partnerships up and down the country are being weighed down with demands from government departments and quangos looking for them to account for every penny they spend.

    Panic move?

    Link later

    As I post this, I am listening to Anglo Chairman Alan Dukes divert a discussion on the bank crash on This Week to talk about the budget deficit....

    Maybe someone in the studio will ask him why Anglo should get this six thousand million before due diligence. Due is there for a reason isn't it?
    Is there no box you can't think yourself into?

  10. #10
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    Default Blind transfers they call them

    Link up now

    Anglo Irish Bank will be paid more than €6 billion for the last set of loans it transfers to the National Asset Management Agency (Nama) before the agency has a chance to assess their true value.

    The decision will allow Anglo to use newly-issued Nama bonds as collateral for fresh borrowing from the ECB, in an effort to ease its increasingly stretched liquidity position.

    The agency will pay for the loans upfront, despite its previous insistence that due diligence be carried out on all loans before a transfer takes place.

    Nama will seek to recoup the difference if its due diligence subsequently discovers that it has overpaid for some or all of the loans.
    Nama to issue €6 billion to Anglo in blind transfers | The Post
    "It is difficult to get a man to understand something when his salary depends upon his not understanding it." - Upton Sinclair.

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