Who got the Anglo's 20+ billion?

ShayMurphy459

Trying to figure something out ...

Anglo lent over 20 billion for property deals - a lot of it to big 'developers' who bought property/land to build houses/apartments/offices.

So Anglo borrowed from other banks, gave the money to developers, who then paid the money to whom?

Are there people sitting around Ireland with tens or even hundreds of millions in the bank from selling (now fairly worthless) land at inflated prices to developers?


The tens of billions went somewhere ..... who has the billions?

Welease

I'd imagine very few sites were sold for tens/hundred's of millions... and probably none of those sites were owned by individuals..

And don't forget, a large amount of the money borrowed was to cover build materials, construction costs etc..

Of those who did make money on land sales.. well, they most likely reinvested it in further deals.. hell why not.. your money's safe in property

So in short.. there are probably very few (or none) individuals who made tens/hundreds of millions and still have it...


Look at the boom we had, and the increase in prices.. thats where the money went.. we were suddenly all rich and earning/paying a lot more.. it doesnt take much to eat up billions when builders are earning 100K, and the guy sweeping the street is on 25K..

The_Honeybadger

I would guess that many farmers / landowners did very very well out of the boom, apparently one farmer got a high seven figure sum through compulsory land purchases for a motorway alone if the sindo is to be believed. Land was being bought and sold for insane money and not all of this was reinvested and lost. I'm sure many developers creamed it and were sensible with their profits too, I personally know one who has told me he will be fine, made a packet out of the boom but didn't go mad buying up every blade of grass he could see so he is now very comfortable. I have also heard of a wealthy publican who bought and resold a field within 2 years making a cool profit of 3 million for doing absolutely nothing but letting a few sheep graze on it. Also from all these billions as welease pointed out massive wages were paid to construction staff and professionals, as well as solicitors etc. An analysis on this subject would make interesting reading though definately. In all fairness while developers and bankers played a massive part in creating this mess, look at all the people that benefited, I don't remember too many yelling stop, but then again I suppose it's not the job of average joe to yell stop, and if FF had done anything to cool the bubbling housing market people would have screamed blue murder and they would have been rewarded with a term in opposition.

thebman

Yes we need a party with responsible policies though so we can at least see if the people of Ireland would choose such policies over the populist nonsense we have from all parties at present.

Fat_Fingers

mickeyk wrote: »

Also from all these billions as welease pointed out massive wages were paid to construction staff and professionals, as well as solicitors etc..

Good point, i know a young lad who at the peak of the construction boom was (a bricklayer) coming home with 6000 a month and that was AFTER tax

ShayMurphy459

So that's it? Most of the money has been spent and the banks are left with tens of billions in bad debts....

Still can't figure out why the Irish government got involved. It was private borrowings by private banks from other private banks and private investment funds... I read on David McWilliams that the Americans were happy to let a few hundred banks go bust in the past year.

Sure, those private investors would have been burned. But the market is often burned and new investors always seem to step forward.....

fontanalis

ShayMurphy459 wrote: »

So that's it? Most of the money has been spent and the banks are left with tens of billions in bad debts....

Still can't figure out why the Irish government got involved. It was private borrowings by private banks from other private banks and private investment funds... I read on David McWilliams that the Americans were happy to let a few hundred banks go bust in the past year.

Sure, those private investors would have been burned. But the market is often burned and new investors always seem to step forward.....

Who were those investors?

Arnold Layne

mickeyk wrote: »

I would guess that many farmers / landowners did very very well out of the boom, apparently one farmer got a high seven figure sum through compulsory land purchases for a motorway alone if the sindo is to be believed.

No doubt, but all those farmers that sold land were advised to put their money into bank shares, i.e. Anglo. Now their money is gone.

we always think of the farmers making a fortune, but the property bubble was enahnced by the middlemen; usually doctors, dentist, estate agents and solicitors who bought from the farmer and then raised the price of the land to make a tidy profit. Now their land is going into NAMA, not the farmers'