A review of NAMA in 2011

“If past history was all there was to the game, the richest people would be librarians”  Warren Buffett Last week, there was a preview blogpost for NAMA in 2012 which is the future where riches lie, and this is the librarians’ review of NAMA in the past 12 months, divided by month. January 2011 In [...]

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NAMA issues statement on loan portfolio size and consideration paid

Anglo Irish Bank chairman, Alan Dukes certainly upset a lot of people yesterday. His bank announced record 12-month Irish corporate losses of €17.6bn, which upset the entire nation. He gave a presentation at University College Cork to the Association of Compliance Officers in Ireland and the Financial Services Innovation Centre where he claimed that Irish [...]

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NAMA recalled to the Committee of Public Accounts for questioning today

The NAMA CEO, Brendan McDonagh’s opening statement is now available. The full transcript is now available here. This morning at 11.30am in Committee Room 1 (you will be able to view proceedings live here – remember Committee Room 1) NAMA will be quizzed again by the Committee of Public Accounts. You’ll remember that NAMA was [...]

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Why did NAMA agree to depart from its own valuation methodology and acquire certain bank loans for more than they were worth?

The Irish Independent today makes clear something which has been alluded to in previous reporting but which has hitherto been shrouded in vagueness. Emmet Oliver claims that the Independent has seen a “document” (presumably a letter) written in May 2009 by the Central Bank of Ireland governor, John Hurley (Patrick Honohan’s predecessor) and the then-acting [...]

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NAMA detailed valuations revealed

Despite criticising the Comptroller and Auditor General’s (CAG) report on NAMA last week as incoherent and aimless, it does contain some interesting information. And aside from the payments (bizarrely including VAT) made to some third party companies, the detailed worked example of a NAMA valuation of a loan is possibly the most interesting nugget in [...]

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NAMA’s first tranche, the calculation of Long Term Economic Value and consideration, what it means for property prices..

Ever since the NAMA announcements in respect of the first tranche of loans on 30th March, 2010, there has been debate about how NAMA calculated the Long Term Economic Value, the Current Market Value and the consideration paid. The summary of the figures from NAMA on 30th March, 2010 are shown here. It should be [...]

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First Tranche: €16bn gross loan value, MV €9.44bn, LEV €10.51bn, NAMA consideration €8.51bn

So said Brian Lenihan in the last hour in a press conference making reference to the NAMA press conference earlier today. Why the consideration paid by NAMA is less than the Long Term Economic Value is unclear at this point – presumably if another party has a first charge then that might reduce the consideration [...]

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Oh dear, the nature of “personal guarantees” and “bankruptcy remote” SPVs beginning to emerge in NAMA banks

We may find out soon how INBS’s loans will be treated by NAMA in the coming days but today’s “revelations” in the Independent really should not come as any surprise to those in the property business and discussed in some detail here weeks ago. I presume there is a typo in the line “The National [...]

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Is there any reason why a financial institution WOULDN’T dispute the NAMA valuations?

Aside from the cost of the review by the valuation panel which could run to 10s of €k, then no, there would appear to be very little downside and given the colossal sums involved a dispute might make good financial sense. So how will the dispute procedure work? It’s all contained in Chapter 2 of [...]

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Long Term Economic Value – changes to terms?

The Independent today reports that Brian Lenihan signed into law last Wednesday a new valuation methodology for NAMA assets. This blog is trying to get hold of what was signed and will have a link here shortly. The Independent says “Crucially, the net effect could change the amount being paid by the taxpayer for €77bn [...]

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