Bacon who designed NAMA says sell it...

http://www.rte.ie/news/2012/0612/nama-not-achieving-its-potential-bacon.html

A study by Peter Bacon, commissioned by Treasury Holdings, says NAMA is not achieving its potential.

And there it is, I wonder if Treasury Holdings want to buy it by any chance? If so then who was Bacon working for all along when he designed NAMA? Us or them?

A new report by the economist who designed the National Asset Management Agency has recommended selling the agency to a private equity investor.

He also suggests "setting up a new mortgage bank and establishing a state investment bank". To get money to purchase Treasury Holdings property portfolio ? Another bank to compete with the crippled banks we already have! Might have been an idea before the guarantee but not now, certainly not after all the recapitalization.

http://www.treasuryholdings.com/property_portfolio/ireland/development_investment_portfolio/dublin_city_centre_retail/

Conflict of interest anyone?

http://www.treasuryholdings.com/about_us/people/board_of_directors/
http://www.treasuryholdings.com/about_us/people/ireland__leadership_team/


Am I too cynical ? Should NAMA be sold? How do we ensure no funny business goes on? How do we ensure it doesnt go to some company because of political links ?

Delancey

Frankly Peter Bacon has little or no credibility left these days , over the years he has pumped out ' independent ' reports that have in fact been commissioned by vested interests .
My perception of him is that he is little more than a ' hired hack ' , if next year NAMA were to commission a report on their future direction they need look no further.......

Zamboni

I just read this as Ronan buys some Bacon.

GetWithIt

Life is like a box of Bacon.

It all goes unchecked. No investigative media. In fact there was little to investigate it is there in plain view

MadsL

Stopped reading at commissioned by Treasury Holdings - all semblance of independence out the window.

Farmer Pudsey

MadsL wrote: »

Stopped reading at commissioned by Treasury Holdings - all semblance of independence out the window.

Did not start reading when I saw by Bacon. this is the guy that started it all back around 2000 I think by telling us we needed was 50k houses a year.
Also was it not Bacon that did the report that set up NAMA maybe I am wrong. If not he did not even have the honour to stay bought.

Sand

Jesus - Peter Bacon flying a kite on behalf of an interested party.

Bacon's telling us what anyone with any sense knew years ago - NAMA is a disaster for the Irish taxpayer. And was always going to be a disaster. Its been a wonderful payout for Official Ireland though.

Selling part of NAMA to an international private equity investor or property investment company could provide a better return

- No self respecting investor would go into business with the clowns at NAMA.
- No self respecting investor would pay anything like NAMAs own valuation of its business.

He suggests that the mortgage bank would compete with commercial banks to provide mortgages for buyers of residential property. He says it would address the issues that are currently keeping buyers out of the market and he recommends that it should be formed as a joint venture between the state and a private sector partner.

Whats keeping people out of the market is the refusal of Official Ireland, guided by Peter Bacon, to allow property to clear at market prices. People will always hesitate to invest when they think there is further to fall, and attempting to prevent a "fire sale" means it just takes longer to reach the point where confidence returns.

Setting up a mortgage bank is just another expensive white elephant to provide jobs for the boys.

The state investment bank would provide venture capital for companies. Mr Bacon says that while Enterprise Ireland has been undertaking a role along those lines for some years, the activity should be spun off into a separate entity with public and private shareholding. This would promote long-term economic development, the economist adds.

Foreign banks could also have done so, and did so, but were driven out of Ireland due to the pursuit of the "pillar banks"/green jersey strategy. Ooops.

The problem with setting up these banks is that Irish banks are not lending because they are sitting on huge losses, so they're parasitically feeding on the Irish economy to build up their capital. The Irish state is also sitting on huge losses and is effectively bankrupt. Neither is a good bedrock for a new bank.

The economist says that a key to stimulating domestic demand is growing consumer confidence, and a key to growing consumer confidence is getting the housing market working again.

FFS.

Despite the fact that today's report has been commissioned by Treasury - which is one of Nama's biggest debtors - Mr Bacon says its findings are independent.

Even if true, it just means Bacon cant excuse this nonsense by claiming he was paid to write it up. He actually believes it.