Tom Parlon, of Construction Industry Federation re NAMA on the News at 1 today - for developers and builders, NAMA “is the only way forward” but they have concerns about the legislation and are in consultation with their builder and developer members.
This is also in the Builders’ Interest section of this thread with related articles.
Brian Lenihan says he needs something more substantial and realistic from FG about the real issues.He says that their argument – that “we should default on those who have loans and advanced moneys to the banks is a very dangerous one” – it was tried in US with Lehmans and led to a financial tsunami and would lead to a financial tsunami here, he says.
The Swedish experience is also mentioned – because they nationalised their banks before their NAMA. Lenihan says they guaranteed them first…
I’d be interested in knowing how large the purchase of derivatives will be, what types of derivatives they are, what the rationale for their purchase is, and what exactly will be the nature of the “adjustments” incorporated.