BOSI Short Sales

Being discussed by David Murphy on RTE radio 1 now.

*the lender being Bank of Scotland Ireland.

Split from Bubble Radio - worth a thread on its own.

I think this is significant and the shape of things to come. As noted elsewhere bankruptcy and repossession are expensive and time-consuming. Meanwhile the housing market is stalled. In BOSI’s case, they want to leave the Irish market quickly, so they are willing to run down their loan book. Effectively they are instituting IVAs for the Irish market.

The RTE piece doesn’t say it, but I imagine that the BTL agreements are also short sales with shared losses (maybe they are short refis?).

But why would they be looking to leave if we had already hit the bottom ? :angry:

You obviously didn’t get the memo on Project Hermes… (some bigwig in Lloyds likes Greek mythology)

BoSI are long gone; no Banking Licence - **rushed **out the door on 31st Dec in order to make sure they could offset the write down against 2010 profits (did I hear UK Bank Levy anyone)

All decision making activity sits outside Ireland - in the UK. (this is absolute in order for them to claim they have left Ireland → write down the shite)

The 800 staff and the continuing risk from their Irish loan books mean that they are not gone in practical terms. Going quickly requires that they offload their loans whether through bulk sales of parts of the loan book, encouraged refis or short sales.

sorry, didn’t mean to sound snarky

of course the loans are there my point is from an accounting point of view (know more but can’t go into it) the write downs are happening in 2010 books

Didn’t take you as! Sorry if I sounded the same!

Ah, gotcha, you mean that they have a pool of ‘loss’ accrued in reserves in 2010 that they can distribute across loans from now onwards?

that I don’t know.

But the impression I have is that anyone who [say] goes pleading to his old mate who is a manager in BoSI etc thinking he can decide on the write off is wasting his time. It also means that a fair amount of local knowledge (don’t laugh) will be lost. The middle manager sitting in London or Edinburgh is going to have a tough time deciding which Canny McSavvy can or can’t pay…

Has everyone forgotten the ICAROM model? Remember the third/fourth/fifth last AIB fuckup (after investing in the US, Rusnak, investing in Bulgaria (the country, not the Womble - he would have been a better risk) and generally fucking up Ireland) caused by their compete arrogance when they bought ICI in order to become a full bancassurance provider?

ICI turned out to be a big Ponzi scheme, much like the entire Irish economy now. Which fact Ernst and Young, their auditors did not spot because they were too busy counting their fee income. The wrote lots of piss poor insurance and then had to write lots more in order to get premium income to pay for the first lot of piss poor insurance and so on. In denial, like the pyramid scheme it became.

AIB went cock in hand to the government who then used previous legislation that was enacted to take over PMPA to nationalise ICI. All the bad shit was put into ICAROM, a run off management company who did their best to manage risk and get value from a pile of shite.

Just sell these loans to a run off management provider for 5c in the Euro and let them chase the people who took out the loans like a Rhodesian Ridgeback going for a joggers gonads.

Jesus - I feel like an aged history teacher without the safe public service job, inflated pension, long holidays, leather patches on my tweed jacked and profound sense of entitlement and enormous self worth not matched by any objective assessment.

Right now, on three.

One, two, three.

Fuck Em All. Fuck Em All.
The Long and The Short and the Tall