IBRC loans being bought back

Slideshowbob

http://www.rte.ie/news/business/2013/1212/492523-tv3-doughty-hanson/

Seems unjust to me.

Who picks up the tab for the losses?

johnnyskeleton

Slideshowbob wrote: »

http://www.rte.ie/news/business/2013/1212/492523-tv3-doughty-hanson/

Seems unjust to me.

Who picks up the tab for the losses?

There is suspiciously little info on the terms of sale. If it were a private bank they would be entitled to keep this secret, but since it is public money they should disclose this publically.

If they sell the debt for 100% of its face value then no one could raise an issue (it's a glorified early redemption). If they sell it for 80-100% of its value then, so long as there were no other interested bidders, it's a fair deal. If they are essentially worthless because of a failure of security then a low value makes sense.

But without this info, and knowing the cosy relationships that have been built up between the various actors, this must be considered highly suspicious.

Pity we don't have any TDs to, you know, ask these questions of Michael Noonan.

As for picking up the tab, the government has already paid for or promised to pay for the banks liabilities so this is a bad debt recovered ie a mitigation of existing losses. Of course, that's only by normal international accountancy standards which the government don't apply anyway.

draiochtanois

This post has been deleted.

Victor

Slideshowbob wrote: »

Who picks up the tab for the losses?

We have already.