NAMA gets EU approval


#12

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

thesouthseabubble.com/


#13

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?


#14

:wink:

I see bubbles everywhere…


#15

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).


#16

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.


#17

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


#18

And that’s a very goodnight to Anglo…


#19

Merci beaucoup…


#20

This is the one that really stood out for me…

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.


#21

Best news in a while I would have thought. If the 17Bn bullshit figure will be transferred in the next few weeks then we will see what Europe think of that and can extrapolate any correction to the 54Bn.


#22

Nah, not safe to do so. For all that the big developers are hopelessly bust, they have better sites and better half-built stuff than the rest… you could only extrapolate down…


#23

The Commission will appreciate the compatibility (and more particularly the real price delivery) of the yielded credits when they are notified separately by the Irish authorities. These individual examinations envisage a mechanism of recovery in the event of over-payment.

The above sentence is a translation of the piece below.

“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.”

There could be better translaters here on the pin.


#24

The Commission will also examine each restructuring plan to make sure that the participation of the financial institutions in this measurement is followed capable restructuring measures to support their return to a long-term viability.

This is the above translation sorry, the provious one is mixed up.

“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.”


#25

From the EU about the nama!
The decision of authorization adopted today relates only to the mode of the NAMA. The Commission will appreciate the compatibility (and more particularly the real price delivery) of the yielded credits when they are notified separately by the Irish authorities. These individual examinations envisage a mechanism of recovery in the event of over-payment. Lastly, the Commission counts on a certain number of commitments entered into by the Irish authorities to take care that the NAMA, while carrying out its objective of maximization of the value of the acquired credits, does not distort competition while using of some of the capacities, exceptions and special laws granted by the law creating agency. The Commission will also examine each restructuring plan to make sure that the participation of the financial institutions in this measurement is followed (following!) capable restructuring measures to support their return to a long-term viability.


#26

The whip hand has already put the club foot in its place…
finance.gov.ie/viewdoc.asp?DocID=6221

As already pointed out (or was that on IrishEconomy?), the DoF have pushed the green slider down and the red slider up to keep the figures in their model the same… this is not really going to help them, though, because the red slider has a clawback mechanism…

“NAMA will also report to the Commission on an annual basis on the use of certain powers in the NAMA legislation. This reporting arrangement is a welcome addition which will reinforce transparency, bolster public and international confidence in the process and further confirm and provide assurance that the powers of NAMA will not be used in an anti-competitive manner.”
I expect that these reports will be published on the EU website or at the very least available under EU FoI legislation.


#27

Here’s a press release from Eugene Regan on what the EU conditions mean, if you’re interested :

Fine Gael’s Eugene Regan has today (Sunday) said the EU Commission’s approval of NAMA, which is qualified by a series of conditions relating to pricing, competition and restructuring, as set out by Fine Gael, will provide much needed safeguards for the Irish taxpayer. Senator Regan went on to say that the Commission must now ensure that these conditions are rigorously adhered to especially where Anglo Irish Bank and Irish Nationwide Building Society are concerned.

“The conditions attached to the EU Commission’s approval of NAMA clearly underline the inherent flaws in the scheme and are critical to ensuring damage limitation for the taxpayer.

“While Fine Gael would have wished that the scale and scope of NAMA were reduced by excluding Anglo Irish Bank and performing loans, we nevertheless welcome the fact that the Commission has taken into account many of the points raised by me in my submission to the European Commission of 15th December 2009 and 12th February 2010.

“By taking on board suggestions, with regard to pricing and the valuation process, the Commission has limited the ability of NAMA and the Government to deliberately force taxpayers to overpay the banks for their toxic developer loans and to distort competition in the property market to the benefit of NAMA.

“This in turn makes it almost certain that the transfer of loans to NAMA from Anglo Irish Bank and Irish Nationwide Building Society will leave both institutions insolvent. The Commission’s guidelines make it clear that in such a scenario, insolvent banks should ideally be broken up and / or wound down in an orderly manner, as Fine Gael has been arguing, with losses being absorbed first and foremost by private investors, including certain classes of bondholders.

The Commission’s guidelines provide that ‘once assets have been properly evaluated and losses are correctly identified, and if this would lead to a situation of technical insolvency without State intervention, the bank should be put either into administration or be orderly wound up, according to Community and national law’.

“I am now calling on the Commission to ensure that its own guidelines are followed after the NAMA write-downs render Anglo and Irish Nationwide Building Society insolvent by forcing the Irish Government to either wind them down or break them up as per Fine Gael policy.”

His french is apparently excellent.


#28

I believe the Commission’s french is excellent too…
(It is no accident that it reads like this).


#29

Senator Regan has done the State some service, but not in the Haughey or Bertie sense thankfully.


#30

It took Europe to rein in Nama - David McWilliams -> sbpost.ie/post/pages/p/whole … qqqx=1.asp


#31

If the Commission make sure valuations for the loan transfers are realistic then the entire Irish banking system is doomed to be liquidated. This is indeed good new for the Irish Taxpayer. 8DD