Cerberus are in serious difficulty here if there is any hint they knew about this payment. The FCPA is not something that should be taken lightly.
Ironic that the section of the SEC website is called “Spotlight” !
Its widely reported that Cerberus bought loans from UB in late 2014 that included some bad loans of Wallaces. So he was hardly an innocent bystander when he starting throwing muck at Cerberus was he?
They are obviously a tough outfit and have issued repayment demands against him. irishtimes.com/business/financial-services/mick-wallace-confirms-2m-cerberus-demand-1.2405514
Thanks for this reply. However:
A) I imagine Cushnahan would only be conflicted if he was involved in the deal while working at NAMA and if his employment or services contract was explicit on this? In the real world you can’t really stop anyone who has left an organisation from using some info they learned there, this happens in all walks of life.
B) The reserve was probably well known in the market. These things tend to be as there are too many parties involved who chat to each other, you could argue that estate agents and some legal types would probably have known the reserve and could have talked, maybe NAMA themselves did, this wouldn’t be unusual or illegal in the commercial property market.
C) Is there illegality here if agents/fixers pop up looking for payments (as long as these are not in NAMA or are state officials!), Pimco could have said no to any such chancers if they were not providing some worthwhile service?
D) I thought the reports said that this would have happened if Pimco won the bid. But Pimco weren’t awarded the contract.
E) I didn’t see anything about this but I haven’t read all material.
Somehow to me there seem to be parties involved chucking muck around for political reasons (UUP/SF) or personal/commercial vendetta reasons (Wallace). But it’s good to see the police investigating and hopefully any wrongdoing will be exposed and punished.
When I read all that I can’t help thinking back to Ivor Callely and his complete inability to distinguish between the concept of right and wrong and the technicality of being able to argue he wasn’t strictly in breach of any rules. But in this case, as has been already outlined. There are clear legal questions especially as Cerberus gave an undertaking that they were not making payments to anyone who had been associated with NAMA but €7.5m of their money ended up doing just that. The whole thing stinks. You may say “it happens in walks of life” but in this case it was Irish tax payers’ funds and if the price achieved was only 10% lower than what could have been achieved in a properly run sales process then it has cost us more than the annual budget of the National Ambulance Service.
Sorry to labour the point but what you seem to have done there is to jump from a suggestion of Cerberus possibly doing something wrong to suddenly suggesting that NAMA did not conduct a proper sales process or could have achieved a better price.
Has any property group come forward to say that they would have paid a higher price for the portfolio in question (everyone had a chance to bid) and are you insinuating that NAMA did something wrong? . BTW I am not connected in any way with NAMA and don’t hold a candle for them! But there is a lot of woolly stuff being thrown around where 1 + 1 = 5 and that is why I was asking people to define precisely what the alleged wrongdoings are and how the Irish state missed out which is the key bit from a ROI taxpayer point of view.
I think the portfolio of loans / property was supposed to sold on the open market, don’t think that happened.
Again, it is the DOJ not the SEC that would investigate.
Great summary by broadsheet.
Nama saying that “individuals” can’t “stop” an enforcement. Seriously ? Your Head of Credit can’t influence anything ? Seriously are they hiding behind the semantics between stop influence stymie and slow down ?
I have reached a new sadness about the Irish state and its institutions, leaders and their sneakiness. It’s not even tragi-comic any more.
I don’t see how you can describe that as a “jump”. The two are inextricably linked. When Cerberus paid £6m to Frank Cushnahan they clearly thought they were getting some benefit for that payment. Either they did get a benefit, and they took control of the portfolio on terms more favourable than would have been achieved on an open/arms length basis, or they didn’t and a Northern Ireland wheeler dealer managed to pull one over on a successful global distressed investment specialist. I know which variant I think is more likely.
NAMA appear to be going for the Pat Neary “I don’t know anything, let alone how to do my job” defence here.
concur entirely, what a fckn disgrace
Thursday 22.45 Spotlight BBC One
Mick Wallace talks about Nama’s Northern Ireland property loan portfolio.
And some interesting bits highlighted in BroadSheet.ie
At least the FG gimps on this forum have stopped attacking Wallace for the state of his hair.
Two men have been arrested in a fraud investigation in the North.
Searches were carried out in Co Down in connection with the inquiry into the controversial £1.2bn sale of assets and property owned by the Nama to US investment firm Cerberus. rte.ie/news/2016/0531/792330 … n-ireland/
I heard RTEs Sean Whelan on the Six O Clock news. At one point he was at pains to stress that as the allegations were on the “Buy” side and Nama were on the “Sell” side there was no issue for Nama. Jesus Christ seriously ?
Is Sean Whelan angling for Paul Reynolds job ?
Perhaps Enda got one of Sean’s family a J1 too ?
Just like with the Frank Flannery VAT evasion (Rehab) and Panama disclosures, this one will be ignored long enough for Enda and Michael to retire first.
Nama’s worst nightmare comes a step closer - -> irishtimes.com/opinion/john- … -1.2723803
Well, well, well as many neutrals suspected it seems that SF were just playing politics with this all along. And please I don’t want anyone to seriously suggest that the implicated SF ex-Chair of the Finance Committee was doing a solo run on this.
So what was really a story about buy-side shenanigans among EAs in NI ballooned into a false scandal when SF started manipulating loyalists, and agents with their own agendas such as Mick Wallace, to assist them in flinging political mud and thus diverting attention away from their own political troubles, with not a care about the collateral damage to any non-combatants such as NAMA in doing this.
Lovely to see such progress in The North, what with both sides now working so closely together.