Anglo sloppy in recovering loans



Raketemensch

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Not just Anglo, also BOI here:

In relation to the €280 million Beacon quarter loan, advanced from 2006, Mr Justice Kelly asked where was “the commercial logic” in Bank of Ireland agreeing to limit the liability under guarantee to such an extent that there was no recourse to about 95 per cent of the debt due by the company. “Why would a bank do that?” the judge asked.
Banks not really looking for their money back? Why? We can make guesses but we will find out for sure when the sh1t really hits the fan. And people will go to jail.
 

richie268

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Nobody is going to jail.
Nama has seen to that, debt forgiveness for banker wannkers !
 

Sensor

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And government has seen to that banks have unending supply of money.
 

DeputyEdo

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The banks could take whatever cash they have now and put it all in a big fire....the government will just give them more tomorrow.
There is no incentive for banks to chase the loans up......what's gonna happen if they don't?? Nothing!
 

Nipper

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Does this from the article mean that the banks can't chase a developer for money without getting approval from Nama?

"The bank also said the National Assets Management Agency (Nama) had on July 6th last issued a direction to the five participating institutions in Nama, which include Anglo, that Nama must approve any action in relation to any individual debtor’s personal guarantee which has an impact greater than €1 million."
 

bokonon

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Does this from the article mean that the banks can't chase a developer for money without getting approval from Nama?
Yep, that seems to be the case. Namawinelake discusses this today (half-way down the article and in the comments):
One of the interesting snippets to arise from yesterday’s hearing was the fact that NAMA on 6th July, 2010 wrote to the five NAMA Participating Institutions (PIs – AIB, Anglo, BoI, EBS and INBS) instructing them to obtain prior approval from NAMA before pursuing legal cases against NAMA-bound developers on guarantees of more than €1m. Apparently if action had been initiated prior to that date, no approval was required but that hasn’t stopped the defence arguing in the present case that the action should have been approved by NAMA – Judge Kelly was “not very impressed” with that argument apparently. NAMA give the impression that they are pulling the strings behind several legal cases taken by banks in respect of loans that have not yet transferred....

https://namawinelake.wordpress.com/2010/10/19/banks-need-permission-from-nama-before-commencing-legal-action-to-enforce-personal-guarantees/
 

hammer

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The taxpayer can cover the 100% because there is little or no chance of the Beacon Loan being repaid in the forseeable future.

Mr Shovlin will survive. The taxpayer will cover it over 10/15 years :)

Happy days
 


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