Developers can buy back their own NAMA assets at knock-down prices...

MsAnneThrope

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I always suspected this could and would be the case, despite assurances from the Minister For Accurate Predictions Lenihan. There just happens to be a nice, little loophole, as always.

Developers whose land or property has been taken over by Nama will be able to buy back their assets despite assurances by the government when the agency was being set up that this could never happen.

The chairman of the Dáil's key spending watchdog expressed concern about the situation after it emerged that Nama could be powerless to stop developers – such as Johnny Ronan, Liam Carroll or Bernard McNamara – from setting up 'shell' companies or other financial vehicles to buy back the same loss-making assets which they have transferred to the agency.

This would allow them to benefit directly from any subsequent upturn in the property market by effectively buying up their own property at a knockdown price from Nama before selling it on at a bumper profit down the line. [...]

Nama chairman Frank Daly – who is a former head of the Revenue Commissioners – noted that there was nothing in company law to stop any individual setting up a company to buy assets transferred to Nama by debt-ridden developers.

While the agency is not allowed to sell back a property to an individual developer – and has vowed to pursue borrowers until they have repaid all of their debts – it cannot prevent an individual developer setting up a 'shell' company to act on his or her behalf to do so.
Was it ever going to be any other way? Now, while many people may say there won't be an upturn for a long time, the children of these developers could stand to gain enormously down the line, perhaps in a generation's time. Whatever shape our new Government takes they need to agree and take action on one thing: That those who took us here won't make massive profits at the taxpayers' expense. As things stand it becomes all the clearer why developers partied and toasted NAMA in Spain, when the agency was first set up.

John Downes, Sunday Tribune, November 21st 2010: Developers could make fortunes from Nama assets - 'Shell' firms would enable ex-owners to buy back property at knockdown prices
 


Franzoni

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Read this yesterday in the Tribune and commented on it on another thread...

Sickening...either complete stupidity or a bit of 'cute hoorism' probably a combination of both by FF,and anyone who votes for FF or the greens in the upcoming election needs to get their heads examined or just go straight to the rubber room....
 

He3

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Skrynesaver

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Did anyone ever doubt that this would be the case.

As soon as NAMA was formed I could see there were going to be strokes pulled and fortunes made
 

powderfinger

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This is a morally hazardous aspect of light touch Irish corporate legislation, which further undermines public trust in NAMA.
Now that it has been highlighted by Frank Daly,what's going to be done to close off this gaping loophole?
 

CptSternn

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This reminds me of the gangs who run the chop shops in California. They steal a car, strip it down to the frame, then leave the frame on the side of the motorway.

The police find it, tow it away, then sell the frame at auction. The same gang then buys the frame legally for pennies, puts all the parts back on and then they have themselves a fully legal car with papers.
 

Akrasia

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Nama or some other representatives of the state should have the power to look at the lifestyles of these developers and if they are defaulting on loans while at the same time living a life of luxury, then there should be a comprehensive audit of their income and expenditure.

If these people are going to be laughing in our faces, we should at the very least be able to poke them in the eye.
 

Broke

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Did anyone ever doubt that this would be the case.

As soon as NAMA was formed I could see there were going to be strokes pulled and fortunes made
The only reason NAMA was set up was to bail out the Galway tent developers.One of the many reasons why we are now broke.
 

MsAnneThrope

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? - 2008 - make money

2008 - take money offshore

2009 - hang out

2010 - bring money back to buy at post-bust prices

Simple

The peaceable Irish citizens will grumble but they will in the end pick up the debt and service it for life.

http://www.politics.ie/economy/138748-curious-tale-anglo-irish-bank-its-austrian-deposits.html#post3020626
Neat summary. And don't forget how the Government dropped a clause in the Anglo nationalisation legislation that allowed certain customers withdraw their money, even if they also owed substantial amounts to Anglo:

The Irish Labour Party today criticised the government for changing the proposed legislation to nationalise the Anglo Irish Bank. A clause relating to the withdrawal of money by customers who owe a lot of money and have more than €20m on deposit is being dropped.

The Fianna Fáil-led coalition had planned to restrict customers with deposits of more than €20m from withdrawing money if their debts were higher than that figure. Labour is questioning whether developers and businessmen lobbied against the move.
Source: Guardian

Let's see who ends up owning Arnotts ;)
 

MsAnneThrope

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captainwillard

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How do you know they'd tell me what's for sale and when? I don't owe hundreds of millions so they might turn their noses up at me. Foreign bidders put in solid bids for Arnotts it seems, yet they were snubbed according to Shane Ross, at a time when Anglo could do with the cash.

Should NAMA openly advertise all 'Properties For Sale'?
Have you asked them or do you prefer to express outrage on internet chatrooms? As for Shane Ross, he was writing in the Sindo, not a very reliable rag.
 

jcdf

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Perhaps someone should go over to Spain and kill these people. That would make sure that they do not gain from this disaster.
 

eoghanacht

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The only reason NAMA was set up was to bail out the Galway tent developers.One of the many reasons why we are now broke.
Yet the IMF are saddling us with another gargantuan loan to bailout the EURO.
 


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