Banks in Ireland compare with troubled Italian banks in EU colour charts of non performing loans

Watcher2

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Like any other costs. Mainly staff time.
Indeed, like salaries and related costs of employing those staff, providing them the equipment, office space etc etc. I hope you are not the one in charge of pricing that labour for the purposes of the deals.
 


JCR

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apologies, if they dont provide them in ireland. i just remember seeing somewhere that paypal offer loans. i couldn't be arsed looking for evidence in ireland.
You should apply to the office of the regulator in the central bank with that attitude. They'd be only lovin' it. "Good man watcher" :)
 

WTTR

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The securitisation vehicle is the wick that syphons-off the working capital of the indigenous economy

It's built into the securitsation structure, there's a fee for adminstering receivables.

Most mortgages are securitised, it's an entirely legitimate thing to do.
It is called the finacialisation of everything.

Of course it is legit; the European Parliament and Leinster House were codded up to the eyeballs by the lobbyists of the International Financial Buccaneers.

Making money from money products.

gerhard dengler is right,

the people still owe the money.

they struggle to pay it back.

It is not recorded by the CB (if it is, it is not published very well)

When mortgages are securitised, they are mainly sold to foreigners.

So, in effect all the mortgage repayments to banks is leaving the country.

This is why the indigenous economy is not keeping up with the MNCs and not benefiting from the rising GDP figures.

Michael Fingleton was the only guy that kept mortgages on the books and did not sell them off. They have all been sold to foreigners since his company was taken over by the IBRC.

This country is being silently robbed of its working capital

But try telling that to the shower or their advisers who are meeting down here in Sligo.

You will have your work cut out for you.

This Advertisement was inserted in The Sunday Independent on 20th May 2007. The amount of Securitised Mortgages that I counted was €37.5bn.This information was mainly gathered from Solrs Websites who helped put the deals together, and were obviously touting for more business. The Central Bank in an era of lax regularity regime was aware of only c. €9.5bn. I guessed that no-one was aware of the devastating effect that the whole building boom was going to have on the Irish Economy. Since the year 2000, I quietly tried to warn our politicians and bankers on the very real live issue that Financial Institutions were handing out ever bigger mortgages to young couples, and the devastating effect that this would have on the Irish birth-rate and the future effects on society. I was reminded of the muted response that I received from the establishment while watching the film “The Outlaw” starring Clint Eastwood over the Christmas 09 period on TV. By the way, I have now counted c.€80bn in securitised mortgages (not counting public or commercial securitisation), but for some reason this figure is continuously held back from the Irish public. The repayments on these deals like a Vampire is sucking the lifeblood out of the Irish Economy.

Where is the government to get the money for the €116 billion Project 2040 plan while millions of unrecorded euro are annually leaving each county in Ireland?

As it is, it will have to be borrowed, while interest rates are rising.

I bet most of our TDs are in the dark with what is going on under their noses.

Who will tell them?

Do not rely on the MSM to do this.

Nor the protector of the International Financial Buccaneers: the ECB and its national offshoot.

This from Euro 2009 Election

Our youth have to pay it back, over the next 20 years at c.€4,000,000,000 (4 billion) per year. What is the significance of this: The same result could happen if we had lost a war and we were made pay reparation damage. Average Rates leveled on each of our 547,000 houses (tsb/ESRI) would be €7,312 to raise the same amount annually.Under a Rates System, this money would be ploughed back into services e.g. Health, Education, Gardai, running County and City Councils etc.

As it is: this money is generated or earned in each locality, then leaves that locality for ever, never to be reinvested in Ireland. The annual Euro losses for each county in the North West Constituency is:
Clare 106m
Galway 220m
Leitrim 27m
Mayo 117m
Roscommon 55m
Sligo 57m
Cavan 60m
Donegal 140m
Monaghan 53m
Longford 33m
Westmeath 76m
Education and knowledge in this county is used as a powerful instrument only for the benefit of the few, and not the truth i.e. for the benefit of the greater number of people.

It only benefits those who need more

and not those in need.
 
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HarshBuzz

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apologies, if they dont provide them in ireland. i just remember seeing somewhere that paypal offer loans. i couldn't be arsed looking for evidence in ireland.
They don't.
 

HarshBuzz

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Indeed, like salaries and related costs of employing those staff, providing them the equipment, office space etc etc. I hope you are not the one in charge of pricing that labour for the purposes of the deals.
It (the asset servicing) costs would be a very small component of the deal structure, a couple of bips.

Think about a bank and their mortgage book. 90%+ of the costs incurred in writing a mortgage occur upfront. Once the deal is inked, you barely have to do anything for the remainder of the mortgage term.
 

Watcher2

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You should apply to the office of the regulator in the central bank with that attitude. They'd be only lovin' it. "Good man watcher" :)
Unlike them, it's not my job, but I now probably sound like it is.:lol:
 

Watcher2

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It (the asset servicing) costs would be a very small component of the deal structure, a couple of bips.

Think about a bank and their mortgage book. 90%+ of the costs incurred in writing a mortgage occur upfront. Once the deal is inked, you barely have to do anything for the remainder of the mortgage term.
But these are troubled mortgages so a lot of receivables work. It's where all the work is. Of course performing loans are admin light. But these are not performing so a lot of work in collections. What is the regulation, the bank is allowed call the borrower three times a day. That's a lot of work. Then there are the letters and if it goes legal, there's the dealing with the legal team etc. Eitherway, there's work.
 

HarshBuzz

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But these are troubled mortgages so a lot of receivables work. It's where all the work is. Of course performing loans are admin light. But these are not performing so a lot of work in collections. What is the regulation, the bank is allowed call the borrower three times a day. That's a lot of work. Then there are the letters and if it goes legal, there's the dealing with the legal team etc. Eitherway, there's work.
No. You're mixing up two things.

The first is the sale of 'problematic' mortgages, such as PTSB are doing. It's simply the sale of the problem loan book to another entity - generally one that will manage the portfolio much more actively than the Irish banks have to date.

The second is the everyday securitisation of performing pools of mortgage receivables. Your own mortgage is almost certainly securitised in this manner.

The admin of the first scenario is heavy. The admin of the second is light.
 

Watcher2

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No. You're mixing up two things.

The first is the sale of 'problematic' mortgages, such as PTSB are doing. It's simply the sale of the problem loan book to another entity - generally one that will manage the portfolio much more actively than the Irish banks have to date.

The second is the everyday securitisation of performing pools of mortgage receivables. Your own mortgage is almost certainly securitised in this manner.

The admin of the first scenario is heavy. The admin of the second is light.
Yes, it's the troubled books we're talking about. And it's problem, after problem after problem. Even when they sell the troubled loans for deep discounts, there is a very long and work heavy job that's required to be carried out by the bank long after the loans are sold. The price paid up front is likely booked in the year of sale but the admin costs aren't.
 

HarshBuzz

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Yes, it's the troubled books we're talking about. And it's problem, after problem after problem. Even when they sell the troubled loans for deep discounts, there is a very long and work heavy job that's required to be carried out by the bank long after the loans are sold. The price paid up front is likely booked in the year of sale but the admin costs aren't.
It is. These deals have very heavy modelling done upfront by very well paid experts.

The entities buying these debts aren't idiots. They're going to sweat these assets hard and reach a settlement in every case they can. That's why they buy them at such a deep discount.

In any case, if they have mispriced it, why should you care? If a Pepper (to take an example of a firm operating in this space) paid over the odds, so what? That's good for the seller (Irish bank) and bad for Pepper's shareholders.
 

clearmurk

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