NAMA, who will they be and (more importantly) how big are their balls?

peasant

OK, so we will get this shiney new "bad bank" or NAMA thingy.

Their job description will be to squeeze the banks as hard as they can while negationg the value of their bad assets and then really go after the builders and other debtors to secure as much as they can of the loan value of those assets.

So basically their job will be to go hard on those people that the governement was soft on (or in cahoots with) for the last decade and a half.

In other words, their job is to upset all traditional friends of FF (the Galway tent people) and thus by proxy also most of FF itself.

Fine, I hear you say, they've had it coming ...and they have.

But who on Gods green little island will be capable of that task? FF appointees? ...Yeah right

The question is then ...who will sit on this NAMA board? Will we import some neutral, competent foreigners? Or will FF just appoint more of their cronies and this whole bad bank will turn out to be a toothles lion, loosing the taxpayer another fortune (possibly bankrupting the country in the process) while providing a relatively soft landing for the high-flying speculators?

Zynks

Good point there. Considering the size of this country it is more than likely that any local appointed will know someone that they have to chase, so impartiality may be compromised. But imagine the reaction if foreigners were asked to take the job...

I say bring in some fuddy mucker rootless American banker to oversee the debt collection job, and give him/her performance based bonuses.

What I would like to know is how much will NAMA cost the Tax payer :rolleyes:

Nody

peasant wrote: »

The question is then ...who will sit on this NAMA board? Will we import some neutral, competent foreigners? Or will FF just appoint more of their cronies and this whole bad bank will turn out to be a toothles lion, loosing the taxpayer another fortune (possibly bankrupting the country in the process) while providing a relatively soft landing for the high-flying speculators?

Do you even have to ask? The right question would be how much is the Irish state going to lose before the fiasco is over?

is_that_so

They do have a good track record in our debt management but it depends on how much power they get from the as yet non-existent legislation. The CEO Michael Somers of the NTMA has been particularly scathing of banks and one would expect the same attention they apply to debt to be applied here.

ionix5891

all questions are answered here

http://www.budget.gov.ie/2009SupApril09/downloads/Annex%20I%20-%20NAMA%20Frequently%20Asked%20Questions.pdf

Welease

peasant wrote: »

OK, so we will get this shiney new "bad bank" or NAMA thingy.

Their job description will be to squeeze the banks as hard as they can while negationg the value of their bad assets and then really go after the builders and other debtors to secure as much as they can of the loan value of those assets.

A minor point, but I doubt their job will be to "squeeze" the banks are hard as possible. If they do, then the banks won't have enough cash left to start loaning etc. (i.e. all the reason why the gov. are taking the toxic debts off their hands).. I'd imagine they are there to work on offloading the toxic assets at a reasonable value that helps the banks recapitalise while minimising the exposure of the tax payer.

peasant

ionix5891 wrote: »

all questions are answered here

http://www.budget.gov.ie/2009SupApril09/downloads/Annex%20I%20-%20NAMA%20Frequently%20Asked%20Questions.pdf

err ...not quite

7.4 Who will be employed by NAMA?
NAMA will be staffed by professionals whose objectives will be to maximise returns and like any commercial entity it will want loan agreements honoured in full and will take all necessary steps to extract value from its acquired loan book.

ionix5891

peasant wrote: »

err ...not quite

sure all them unemployed bankers now gonna get a cushy public sector job

what could possibly go wrong

peasant

Welease wrote: »

A minor point, but I doubt their job will be to "squeeze" the banks are hard as possible.

Correct ...wrong analogy. Nonetheless, NAMA will have to be tough and vigilant in their negotiations with the banks.

Nody

peasant wrote: »

Correct ...wrong analogy. Nonetheless, NAMA will have to be tough and vigilant in their negotiations with the banks.

Want to buy a lovely red bridge from me?

peasant

ionix5891 wrote: »

sure all them unemployed bankers now gonna get a cushy public sector job

what could possibly go wrong

...there will also be five unemployed junior ministers bumbling around