Was Nama naive on Northern Ireland's politics, bungling sale of properties?

patslatt

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From reports in the Irish Independent, it looks as if NAMA was fearful that its huge sale of billions of loans on property assets in NI would trigger political controversy that would hobble the sales of properties. Probably correctly, it felt that in NI's small community the sales would be perceived as having a big impact on business and the economy. Possibly,it feared Irish Water style populist demonstrations against sales and condemnations by populist politicians.

As a result, NAMA decided to sell the property loans in a single auction. This was a radical departure from its previous sale processes of selling them off singly or in small batches.

In the NI sale process, it provided considerably reduced documentation on property loans and properties compared to previous NAMA auctions. It also limited the scope of potential bidders to engage in investigative due diligence,so many of them dropped out and only two submitted bids. Apparently,this low key sales process was meant to avoid offending political and community sensitivities.

Had NAMA taken a more aggressive approach to selling the properties, could that have triggered a wave of populist protests? In the case of commercial properties, there is little scope for populism in the boring conditions of leases and the court cases of mortgage foreclosures. In the case of rental properties, if mortgage foreclosures resulted in rent increases, there could be tenant protests but rents in NI are not under upward pressure.

Finally, NAMA should have had more confidence in the strength of property rights in the UK. As part of the UK, NI would not have rewritten its property laws and regulations just to spite NAMA and its bidders.
 


gleeful

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Nama should be wound up quickly. If that means some deals are quick and dirty, so be it.

Lets get this behind us.
 

clearmurk

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Nama should be wound up quickly. If that means some deals are quick and dirty, so be it.

Lets get this behind us.
And there's the FG/Noonan position.

To hell with the cost to every citizen in the state.

To hell with the unearned financial benefits we are gifting to others, typically out of state.

Let's pretend we've done a great job.
 

gleeful

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And there's the FG/Noonan position.

To hell with the cost to every citizen in the state.

To hell with the unearned financial benefits we are gifting to others, typically out of state.

Let's pretend we've done a great job.
There is a bigger cost to delaying. These were Sterling valued loans and Sterling is a very volatile currency. Best to be rid of them before the next crash.
 

Spanner Island

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Presumably because they weren't?

I always got the impression NAMA existed to serve the usual suspects and therefore sold in chunks to keep the little guys out...

Regardless... since the first day I ever heard about NAMA and what it was proposed to be I've always known it was ripe for being another cesspool of controversy riddled with the usual suspects serving themselves and their cronies... and so it is proving to be...

The Irish 'state' in charge of the largest property portfolio on the planet... what could possibly go wrong... ?
 

gleeful

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Presumably because they weren't?

I always got the impression NAMA existed to serve the usual suspects and therefore sold in chunks to keep the little guys out...

Regardless... since the first day I ever heard about NAMA and what it was proposed to be I've always known it was ripe for being another cesspool of controversy riddled with the usual suspects serving themselves and their cronies... and so it is proving to be...

The Irish 'state' in charge of the largest property portfolio on the planet... what could possibly go wrong... ?
Nama was invented to avoid nationalising the banks, but we did that anyway. Now that the banks are back on their feet, perhaps these loans should be sold back to them.
 

Notachipanoaktree

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Ah! Com'on your infringing on NAMA's privacy.

Not allowed in 'dear' ol' Pigstyland.

ZOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

Call in the Data Protection police. Exile you infringers to Tory for life.
 
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redneck

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the trouble with white collar crime is it is usually very hard to prove. Because the Accountants, Banks, Politicians and Solicitors are the legal establishment. We had several tribunals here instead of using the Garda fraud squad. The proper method of prosecuting crime imo.
 

HarshBuzz

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I get the impression NAMA management took one look at the horror show that is NI politics (they got more lobbying from NI politicians on this than they ever got down here) and decided to get rid of the crappy low-yield junk that made up that portfolio asap.

NI has that effect on people. David Cameron clearly felt it too.
 

hollandia

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From reports in the Irish Independent, it looks as if NAMA was fearful that its huge sale of billions of loans on property assets in NI would trigger political controversy that would hobble the sales of properties. Probably correctly, it felt that in NI's small community the sales would be perceived as having a big impact on business and the economy. Possibly,it feared Irish Water style populist demonstrations against sales and condemnations by populist politicians.

As a result, NAMA decided to sell the property loans in a single auction. This was a radical departure from its previous sale processes of selling them off singly or in small batches.

In the NI sale process, it provided considerably reduced documentation on property loans and properties compared to previous NAMA auctions. It also limited the scope of potential bidders to engage in investigative due diligence,so many of them dropped out and only two submitted bids. Apparently,this low key sales process was meant to avoid offending political and community sensitivities.

Had NAMA taken a more aggressive approach to selling the properties, could that have triggered a wave of populist protests? In the case of commercial properties, there is little scope for populism in the boring conditions of leases and the court cases of mortgage foreclosures. In the case of rental properties, if mortgage foreclosures resulted in rent increases, there could be tenant protests but rents in NI are not under upward pressure.

Finally, NAMA should have had more confidence in the strength of property rights in the UK. As part of the UK, NI would not have rewritten its property laws and regulations just to spite NAMA and its bidders.
Naive, only in the sense that they thought they could pull the same sort crap in the North as they can get away with down here. The North is probably the most surveilled place in western Europe. That's both breathtakingly naïve, and incredibly funny.
 

Spanner Island

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the trouble with white collar crime is it is usually very hard to prove. Because the Accountants, Banks, Politicians and Solicitors are the legal establishment. We had several tribunals here instead of using the Garda fraud squad. The proper method of prosecuting crime imo.
The entire tribunal fudge was a cynical scam from day one... deliberately setup to have no teeth and no real powers...

That they were allowed go on for so long and that so many of them occurred is a national scandal.

They had no other purpose than to enrich vested interests (the legal profession mainly) while having the power to do f*** all and impose no consequences... all of which was deliberate and intentional from the outset.
 

Sister Mercedes

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the trouble with white collar crime is it is usually very hard to prove. Because the Accountants, Banks, Politicians and Solicitors are the legal establishment. We had several tribunals here instead of using the Garda fraud squad. The proper method of prosecuting crime imo.
The reactions to the Hickey arrest in Rio (outrage in the traditional Irish media, euphoria in Irish social media) show that the establishments attitudes to white collar crime haven't changed a single whit since the crash.
 

loner

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Nama slipped up badly on this one---just makes you wonder about other deals
 

Zapped(CAPITALISMROTS)

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Nama slipped up badly on this one---just makes you wonder about other deals
NAMA'S definition of slipping up, has probably got a greater deal of latitude then most people or organizations limits!:rolleyes:
 

Don Wan

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So what happened to the €5 million that was in the Isle of Man?
 

derryman

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From reports in the Irish Independent, it looks as if NAMA was fearful that its huge sale of billions of loans on property assets in NI would trigger political controversy that would hobble the sales of properties. Probably correctly, it felt that in NI's small community the sales would be perceived as having a big impact on business and the economy. Possibly,it feared Irish Water style populist demonstrations against sales and condemnations by populist politicians.

As a result, NAMA decided to sell the property loans in a single auction. This was a radical departure from its previous sale processes of selling them off singly or in small batches.

In the NI sale process, it provided considerably reduced documentation on property loans and properties compared to previous NAMA auctions. It also limited the scope of potential bidders to engage in investigative due diligence,so many of them dropped out and only two submitted bids. Apparently,this low key sales process was meant to avoid offending political and community sensitivities.

Had NAMA taken a more aggressive approach to selling the properties, could that have triggered a wave of populist protests? In the case of commercial properties, there is little scope for populism in the boring conditions of leases and the court cases of mortgage foreclosures. In the case of rental properties, if mortgage foreclosures resulted in rent increases, there could be tenant protests but rents in NI are not under upward pressure.

Finally, NAMA should have had more confidence in the strength of property rights in the UK. As part of the UK, NI would not have rewritten its property laws and regulations just to spite NAMA and its bidders.


This seems to me to be a bit of spin to try to take the edge of the embarrassing scandal that it is. These guys are professional people paid vast amounts to ensure this kind of thing does not happen . For professionals to claim naievity as a defence should guarantee they are never employed in any capacity re finance again.
 

Don Wan

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Taking The Michael | Broadsheet.ie


Transcript of Marion Finucane interview with Mr McEnery

Ms Finucane didn’t mention that Mr McEnery was a member of Nama’s Northern Ireland Advisory Committee, of which Frank Cushnahan and Ronnie Hanna were members.

She also didn’t mention that Mr McEnery was director of elections for Fine Gael’s Michael Noonan, now Minister for Finance, before the general election in 2011.

Mr McEnery was first appointed to Nama on December 22, 2009, for a four-year term, by the late former Minister for Finance Brian Lenihan, while he was re-appointed for a five-year term on December 22, 2013.

The Northern Ireland Advisory Committee was established on January 7, 2010 and dissolved in September 2014, after the sale of Project Eagle.

In 2013, the then Minister for Health James Reilly appointed Mr McEnery as chairman of the Health Information and Quality Authority (HIQA).

Mr McEnery was also on the board of directors for Limerick City of Culture board in 2014.
 

Franzoni

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I get the impression NAMA management took one look at the horror show that is NI politics (they got more lobbying from NI politicians on this than they ever got down here) and decided to get rid of the crappy low-yield junk that made up that portfolio asap.

NI has that effect on people. David Cameron clearly felt it too.

That was more about Camerons position in the Tory party and the pressure he was under from hardline Euro skeptics..many of whom would also be hardline unionists....

If you are going to set up a bad bank you need people with hard necks outside of the circle to be able to deal with the chancers wherever the trail leads.....Christ after the GFA that should of been obvious when it comes to NI and NAMA.... getting independent people similar to the way Mitchell and De Chastelain were brought in to broker the deals ....that way the Irish government could of washed it's hands and kept at arms length at any accusation of foul play.....

Once again we saw that this small island has too many in the same circles who have had previous dealings and were seen as the people to deal with.......

Morgan Kelly was right.... in all probability you could sort out your financial difficulties on a sideline at a rugby match if you mix in the right circles.....
 


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