Yesterday the BBC’s Business Editor Robert Peston (the laid-back voice of the British recession) was in town where he seems to have found time for a few of the key players in the financial architecture as we confront a pretty difficult week on bond markets and with a final Anglo estimate due not to mention Tranche 3 of NAMA’s loans.
He had a 2 ½ minute piece with the NAMA Chairman Frank Daly in what looks like the hallway on the upper floors of Treasury Buildings. There’s nothing of note in the interview, it’s aim seems to have been to project a broadly-in-line business-as-usual position to international media. A few items
(1) Frank says that the transfer of the NAMA tranches should be complete by the end of 2010.
(2) Frank blames the bankers and developers “equally” for the crisis
(3) He still predicts NAMA will take on €80bn of loans
Now Robert says in his written piece that he “asked its chairman Frank Daly if its spending mandate of 80 billion Euros will be enough or will it be forced to buy even more bad loans”. That’s not quite how the interview went where it was more about asking Frank for his prediction of the total value of loans to be acquired. A recurring theme on here is that NAMA banks will have some €70bn of commercial property loans (ie non-residential mortgage lending on property) after NAMA has completed its transfers. Although these loans may not be as toxic as “land and development” loans they are still pretty poisonous and there is a lingering question whether these residual loans will be a drag on banks’ ability to attract funding once NAMA has completed its process. Should NAMA’s scope be expanded? It’s a question that has been asked on here before. The government seems more concerned at getting NAMA to complete its original remit and might seen any expansion of scope as an “unnecessary complication”.
NAMA Wine Lake 
Isn’t the 2nd Quarterly Report to June due out in the next couple of says as well. It will be interesting to see from a cash flow point of view and also to see how NAMA have graded the quality of the loans. What are you expecting to see?
Indeed the report for the quarter ending 30 June 2010 is due to be delivered by NAMA to DoF tomorrow and if the previous quarter was anything to go by we will see the report published at the start of next week. A 12-things to look out for (including things that will be omitted) is more or less prepared and should be up later today.
Just the banks and the developers, Frank? What about the politicians and their minions in the Department of Finance?
I am afraid Frank would never make the grade as being judicially impartial. Too much of a blind-spot when it comes to his paymasters.
In fairness I think Frank was asked a “do you want tea or coffee question” but he’s been around long enough to say “I’m fine thanks” or “do you have any water”. It seems to be all hands on deck to project confidence in what is being done to protect and repair the financial system and mentioning politicians, regulators or others in the financial architecture (some of whom are still in their positions) might just prompt questions and sow doubts.