NAMA gets EU approval

[verbatim]

Irish ‘NAMA’ Bad-Bank Plan Wins European Commission Approval

By Colm Heatley
Feb. 26 (Bloomberg) – Ireland’s plan to create a so-called
bad bank won approval from the European Commission, paving the
way for the transfer of 80 billion euros ($109 billion) of
property loans from the country’s lenders to the newly created
agency.
The Brussels-based commission said the plan to set up the
National Asset Management Agency, or NAMA, is in line with
guidelines governing state aid in the 27-nation European Union.
“Ireland’s financial sector has been one of the most
affected by the global financial crisis in Europe and the burst
of the Irish real estate bubble has only compounded the
problems,” said EU Competition Commissioner Joaquin Almunia in
an e-mailed statement today. “This impaired-asset measure,
which is specifically targeted at real estate assets, is
therefore key to cleaning up Irish banks’ balance sheets.”
Ireland is creating the bad bank to purge lenders including
Allied Irish Banks Plc and Bank of Ireland Plc of toxic loans as
property prices have fallen 50 percent amid the worst recession
in the country’s modern history. The loans will be bought at a
discount and their transfer to the bad bank couldn’t start until
the commission approved the plan.
The commission said it “will assess the compatibility,”
and “in particular the actual transfer price, of the
transferred assets” when they are separately notified by the
Irish authorities. “These individual reviews will include a
claw-back mechanism in case of excess payments,” it said.
Finance Minister Brian Lenihan said Feb. 22 that, subject
to European approval, he expects the first loans to be
transferred to NAMA within the next few weeks.

[The_Unwelcome_Guest]

It’s 10:48am.

Is anyone going for a pint?

[yoganmahew]

“The commission said it “will assess the compatibility,”
and “in particular the actual transfer price, of the
transferred assets” when they are separately notified by the
Irish authorities. “These individual reviews will include a
claw-back mechanism in case of excess payments,” it said”
Em, the commission has given outline planning permission. The pink elephant on the roof is not approved yet. I think it is a pretend and extend approval…

[Rarely]

So theres scrutiny and a claw back mechanism so its not all bad news then. Even if never used they will help keep the process honest (term honest used tongue in cheek in this context of course)

[provost]

oh, so like… approval in principle

how much did we put down as our earnings again?

[mrch]

Well I’m relieved to hear this news. Special thanks to bungaloid for persuading me to vote and canvass for nama.

I presume this means that eugene regan’s submission to the commission has failed to halt nama but may have led to the conditions above.

[johnboy]

…and the Irish bank shares have not budged…

AIB -1.3%
BOI -2.2%

…dead men walking…

[Inis_Man]

[anon44764452]

Had the sense Eugnee Regan fancied his chances of at least getting Anglo excluded.

No joy. Anglo is ‘systemically important’

The scheme was open to all systemically-important credit institutions established in Ireland, including subsidiaries of foreign banks, with a 60-day application window that expired on 19 February. Five institutions will participate: Anglo Irish Bank, Allied Irish Bank, Bank of Ireland, Irish National Building Society and Educational Building Society.

[thecretinhop]

You have to despair, you really do, I smelled a giant rat in anglo, now i think its confirmed, it is utter maddness that Fritz will be happy with it, unless there is something very rotten in there, thank god its friday will get fucked up tonight

[yoganmahew]

The EU release:
europa.eu/rapid/pressReleasesAct … anguage=en

Today’s approval concerns only the NAMA scheme. The Commission will assess the compatibility (and, in particular, the actual transfer price) of the transferred assets when they are separately notified by the Irish authorities. These individual reviews will include a claw back mechanism in case of excess payments.

Finally, the Commission relies on a number of commitments from the Irish authorities to ensure that NAMA, whilst it performs its goal of maximising the recovery value of the purchased assets, does not lead to distortions of competition through the use of some of the specific powers, rights and exemptions granted in the NAMA Act. The Commission will also review individual restructuring plans to ensure that the participation of the financial institutions in this measure is followed up with appropriate restructuring measures to promote the return of those institutions to long term viability.

You have to wonder what has been approved here. It sounds very like “a scheme, the purpose of which will be revealed at a later date, which is gonna be great”

[johnboy]

@yoganmahew

You have to wonder what has been approved here. It sounds very like “a scheme, the purpose of which will be revealed at a later date, which is gonna be great”

Sounds like this prospectus from the era of the South Seas Bubble

An unknown adventurer started the scheme that showed, more completely than any other did, the utter madness of the people. It was entitled “company for carrying on an undertaking of great advantage, but nobody to know what it is.”

thesouthseabubble.com/

[bodyofevidence]

as far as I can see (in the USA at present so somewhat behind the curve) theres nothing here that says anything about AIB and its dividend ? Can they (if they can rustle up 1/4 market cap like that) now pay the pref shares in cash or?

[yoganmahew]

@johnboy

https://www.thesouthseabubble.com/

I see bubbles everywhere…

[yoganmahew]

@bodyofevidence

as far as I can see (in the USA at present so somewhat behind the curve) theres nothing here that says anything about AIB and its dividend ? Can they (if they can rustle up 1/4 market cap like that) now pay the pref shares in cash or?

That would be a ‘not’ in my view.

Unless of course, AIB pay us back with our own money…
(Which has been my contention all along).

[jmc]

@yoganmahew

“The commission said it “will assess the compatibility,”
and “in particular the actual transfer price, of the
transferred assets” when they are separately notified by the
Irish authorities. “These individual reviews will include a
claw-back mechanism in case of excess payments,” it said”
Em, the commission has given outline planning permission. The pink elephant on the roof is not approved yet. I think it is a pretend and extend approval…

Anyone got a link to the original Commission notice, preferably in French. English maybe the working language but French is the EU lawyers language. These English quotes do not sound like a ringing endorsement, more a keep going forward slowly until we say stop. Or rather till the facts on the ground change and its back to square one.

[mrch]

Voila
europa.eu/rapid/pressReleasesAct … anguage=en

La Commission appréciera la compatibilité (et plus particulièrement le prix de cession réel) des actifs cédés lorsqu’ils auront été notifiés séparément par les autorités irlandaises. Ces examens individuels prévoient un mécanisme de récupération en cas de trop-perçu.

[The_Unwelcome_Guest]

La Commission examinera également chaque plan de restructuration pour s’assurer que la participation des établissements financiers à cette mesure soit suivie de mesures de restructuration à même de favoriser leur retour à une viabilité à long terme.

And that’s a very goodnight to Anglo…

[jmc]

@mrch

Voila
europa.eu/rapid/pressReleasesAct … anguage=en

La Commission appréciera la compatibilité (et plus particulièrement le prix de cession réel) des actifs cédés lorsqu’ils auront été notifiés séparément par les autorités irlandaises. Ces examens individuels prévoient un mécanisme de récupération en cas de trop-perçu.

Merci beaucoup…

[jmc]

@The Unwelcome Guest

La Commission examinera également chaque plan

de restructuration pour s’assurer que la participation des établissements financiers à cette mesure soit suivie de mesures de restructuration à même de favoriser leur retour à une viabilité à long terme.

And that’s a very goodnight to Anglo…

This is the one that really stood out for me…

Enfin, la Commission compte sur un certain nombre d’engagements pris par les autorités irlandaises pour veiller à ce que la NAMA,…

Finally, the Commission relies on a number of **commitments **from the Irish authorities to ensure that NAMA, …

Not an expert on French legalese but I think an “engagement” has a lot more legally binding baggage in French than the term “commitment” used in the English version. D’engagements are a lot more than a bunch of vague commitments. Implies very much the spirit as well as the wording of what was agreed to…

As I understand it, the French version is the legally definitive version in all matters of dispute on interpretation of EU Law and directives…

So not looking good for the long term prospects for NAMA if the Commission decides to enforce the engagements as to market price and transparency.