The Balance Sheet value of Aib shares at 31 December 2011 was actually greater than the investment amount of €8.7 billion by NPRF.

If the non-repayable ‘capital contribution’ (all €6.054 billion) is eventually offset against sundry banking crisis income to the government (bank guarantee + central bank interest), then the ratio is 15.9/19.7 or 75%.

This is very different from the valuation ratio of 7.9/20.7, i.e. 40% of cost, inferred in the NTMA report

Until now, what has stopped Irish Pension Funds purchasing bonds from the NTMA?

I have read reasons such as the Sovereign bonds are not long enough maturity-wise and that the recent high yields make them perhaps unacceptably risky (although not an excuse during the boom years).

Is that it or was there something more legalistic preventing Irish Pension Funds’ participation?

Fair enough.

Really get a headache trying to cource all these bloody recaps.

Point stands indeed.

Patrick Kavanagh in Tarry Flynn gave a hilarious account of his horse that he called GLUG. Even though he knew the horse to a disaster, the country way was to praise him to the skies until one had managed to get rid of him.

Now if the NTMA or minister was intending disposal in the near or even distant future, the way to raise the asking price is hardly by reducing by over 50%.

Either way my point stands. Could I pose the question another way.
What value does the Minister attribute to AIB in which he holds a 98%stake. Is it €14 billion or is it €6 billion.
There is only an €8 billion difference of opinion in those advising him. Those highly paid people advising him and those highly paid advisers (Goodbody’s), advising the advisers that advise him.

But ‘Shure’ maybe was is €8billion when it comes banks or highly paid advisers or public interest directors.

PS. I note that there is no detail on remuneration levels of staff provided in the NTMA report.

PSS: Note also that average annual return since 2001 on discretionary investments is 3.1%. A performance that has made some well of people into millionaires and that’s is not counting their pension millions. The generosity of a bankrupt State know no bounds.

Now a leaving cert student would have got at least that much by putting the money on deposit with a few different banks.

PSSS: The investment portfolio is worth looking at. It looks like the NTMA like to invest in pretty much every country and company in the world, except Ireland (with a few small exceptions). Great to know that we are doing our bit for world industry.
Personally I would dump the lot of them and invest in capital projects at home, particularly broadband. We don’t have an obligation to support companies around the world, do we?

http://namawinelake.wordpress.com/2012/06/11/2011-annual-reports-for-irish-banks-reveal-potentially-catastrophic-losses-and-additional-bailouts-requirements/

There are also differences in how you would value a company as a going concern and how you would value it with the prospect of an immediate sale. So you can have two very different valuations on assets, be they loans or entire companies.

I would GUESS the advice from Goodbody on which the NPRF based its values on was on the basis of an imminent disposal, but there is practically no detail to assist in examining that view.

The directors of AIB show a book value for the bank of €14.4 billion at December 2011. One assumes its auditors KPMG concur.
Why then did the NTMA on the advice of Goodbody’s say that the State’s98% share was worth only €6 billion.
Is AIB lying? Does the NTMA believe AIB accounts to be rubbish?

How does the Minister view a situation whereby the directors of a bank in which he owns 98% show a book value of the bank at >€14billion, but the NTMA that reports to him, does not believe a bloody word of it and puts the book value of the bank at €6billion.

“From 1967 to 2004 Jones Lang LaSalle acted as consultant surveyor, property manager and valuer and advised in the acquisition of a number of properties for the Trust. From January 2005 Jones Lang LaSalle’s role is valuer, property manager for multi-let properties and agent for specific agency and investment instructions.”
Small little world!
http://www.iput.ie/uploads/documents/reports/IPUT_Annual_Report_2011.pdf