NAMA and the Master SPV

NAMA is rather complicated. And so is its ownership structure. One would think NAMA would publish their company documents on their website – but they don’t. It is afterall an interminably opaque organisation.

To remedy at least a part of this, I am publishing the company accounts of all NAMA related companies – firstly and most importantly, those of National Asset Management Agency Investment Limited. This is the company that operates the Master special purpose vehicle (SPV), which is 51% owned by private interests, and 49% owned by the State. The reason for the split is so that NAMA’s debt can stay off the balance sheet of the State.


Interesting, isn’t it?

National Asset Management Agency Investment Limited has 100,000,000 shares. 49,000,000 of those are held by the National Asset Management Agency. Another 17,000,000 are held each by Irishlife Assurance PLC (part of the Permanent TSB group), New Ireland Assurance Company (part of the Bank of Ireland group) and Percy Nominees (Part of the AIB group)

Percy Nominees is an interesting one. Why a nominee company? Who are the private investors (if any), aside from AIB pension funds, that are invested in NAMA? The nominee company itself has a colourful history.

In 2007, Percy took action against Treasury Holdings over the title of the Northside Shopping Centre in Coolock. The Independent:

The freehold of the centre was held in trust by Percy Nominees Ltd for both it and Mr Conlan, subject to a 99-year lease from October 1976 held by N1 Property Developments Ltd.

BNY claims that it, Ark Life and Mr Conlan entered in November 1998 into a co-ownership agreement with AIB Investment Managers Ltd (AIBIM), which included provisions governing the sale by one party of its interest in the centre.

Let’s follow this for a second. Peter Conlan appears to be a property developer, who may also be the same Peter Conlan who is a director of Tanat Limited and Pensar Limited. Tanat is itself a company also connected with Treasury Holdings. Let’s see how:


An interesting list there of over 300 companies of which Treasury Holdings chief Johnny Ronan (DOB December 4, 1953) is a director. Peter Conlan says in the document that he is a director of Boulden, a company dissolved in 1998, and Leisureworld Limited. According to the Tanat accounts, the company values its fixed assets at €14,000,000 as of December 2008. The company appears to own one property, and owes one bank €7.4m. The company is 50% owned by Mr Ronan and Mr Conlan.

Mr Conlan may or may not be still involved with Percy Nominees, but interesting documents nonetheless.

And what about Percy itself? Percy appears to own, on behalf of its clients, several properties in the UK. There is also a similarly named company called Percy Investment Funds PLC from which Percy Nominees director Niall Markey (an AIB employee) resigned in 2005. Percy Investment funds was categorised by British authorities as an offshore fund and it requested to have its authorisation revoked as a Collective Investment Scheme in the same year. Another director is Head of Property in the asset management area of AIBIM Caroline O’Shea, according to the AIB website. Here is more details on Percy Nominees:


NAMA appoints receivers

Some interesting yuletide notices from Iris Oifigiul:

COMPANIES ACTS 1963-2009
NOTICE OF APPOINTMENT OF A RECEIVER
PADDY BURKE (BUILDERS) LIMITED
(In Receivership)
Notice is hereby given that on 21 December, 2010, the National
Asset Management Agency (‘‘NAMA’’), under powers
conferred upon it by the National Asset Management Agency
Act 2009 (the ‘‘NAMA Act’’) and Indentures of Mortgage dated
1 September, 1998, 28 April, 2004, 23 June, 2005 and 4 April,
2006, a Debenture dated 26 June, 2003 and Indentures of
Assignment by way of Mortgage dated 28 April, 2004 and 23
June, 2005 (the ‘‘Debentures’’), each made between Paddy
Burke (Builders) Limited (the ‘‘Company’’) and Anglo Irish
Bank Corporation Limited (formerly Anglo Irish Bank plc),
which Debentures are acquired bank assets within the meaning
of the NAMA Act, appointed Eoin Ryan of Horwath Bastow
Charlton, Horwath House, The Red Church, Henry Street,
Limerick, to be Statutory Receiver of the assets of the Company
charged by the said Debentures.
Dated this 22nd day of December, 2010.
NATIONAL ASSET MANAGEMENT AGENCY,
Treasury Building,
Grand Canal Street,
Dublin 2.

COMPANIES ACTS 1963-2009
NOTICE OF APPOINTMENT OF A RECEIVER
MELLVIEW CONTRACTORS LIMITED
(In Receivership)
Notice is hereby given that on 20 December, 2010, the National
Asset Management Agency (‘‘NAMA’’), under powers
conferred upon it by the National Asset Management Agency
Act 2009 (the ‘‘NAMA Act’’) and Assignment dated 27 October
2006 and Account Charge dated 4 May, 2007 (the ‘‘Charge
Documents’’), made between Mellview Contractors Limited
(the ‘‘Company’’) and Anglo Irish Bank Corporation Limited
(formerly Anglo Irish Bank plc), which Charge Documents are
acquired bank assets within the meaning of the NAMA Act,
appointed Paul McCann of Grant Thornton, 24-26 City Quay,
Dublin 2, to be Statutory Receiver of the assets of the Company
charged by the said Charge Documents.
Dated this 22nd day of December, 2010.
NATIONAL ASSET MANAGEMENT AGENCY,
Treasury Building,
Grand Canal Street,
Dublin 2.

COMPANIES ACTS 1963-2009
NOTICE OF APPOINTMENT OF A RECEIVER
ARCADIA DEVELOPMENTS LIMITED
(In Receivership)
Notice is hereby given that on 20 December, 2010, the National
Asset Management Agency (‘‘NAMA’’), under powers
conferred upon it by the National Asset Management Agency
Act 2009 (the ‘‘NAMA Act’’) and Debenture dated 13 January,
2005, Charges dated 21 March, 2005, 20 April, 2005, 14 July,
2005 and 13 January, 2006 and Assignments dated 13 January,
2005 and 29 April, 2005 (the ‘‘Debentures’’), each made
between Arcadia Developments Limited (the ‘‘Company’’) and
Anglo Irish Bank Corporation Limited (formerly Anglo Irish
Bank plc), which Debentures are acquired bank assets within
the meaning of the NAMA Act, appointed Paul McCann of
Grant Thornton, 24-26 City Quay, Dublin 2, to be Statutory
Receiver of the assets of the Company charged by the said
Debentures.
Dated this 22nd day of December, 2010.
NATIONAL ASSET MANAGEMENT AGENCY,
Treasury Building,
Grand Canal Street,
Dublin 2.

COMPANIES ACTS 1963-2009
NOTICE OF APPOINTMENT OF A RECEIVER
LYNDONBARRY ESTATES LIMITED
(In Receivership)
Notice is hereby given that on 20 December, 2010, the National
Asset Management Agency (‘‘NAMA’’), under powers
conferred upon it by the National Asset Management Agency
Act 2009 (the ‘‘NAMA Act’’) and Debenture dated 18 October,
2006 (the ‘‘Debenture’’), made between Lyndonbarry Estates
Limited (the ‘‘Company’’) and Anglo Irish Bank Corporation
Limited (formerly Anglo Irish Bank plc), which Debenture is
an acquired bank assets within the meaning of the NAMA Act,
appointed Paul McCann of Grant Thornton, 24-26 City Quay,
Dublin 2 to be Statutory Receiver of the assets of the Company
charged by the said Debenture.
Dated this 22nd day of December, 2010.
NATIONAL ASSET MANAGEMENT AGENCY,
Treasury Building,
Grand Canal Street,
Dublin 2.

COMPANIES ACTS 1963-2009
NOTICE OF APPOINTMENT OF A RECEIVER
MELLVIEW PROPERTIES LIMITED
(In Receivership)
Notice is hereby given that on 20 December, 2010, the National
Asset Management Agency (‘‘NAMA’’), under powers
conferred upon it by the National Asset Management Agency
Act 2009 (the ‘‘NAMA Act’’) and Assignment dated 27
October, 2006 (the ‘‘Assignment’’), made between Mellview
Properties Limited (the ‘‘Company’’) and Anglo Irish Bank
Corporation Limited (formerly Anglo Irish Bank plc), which
Assignment is an acquired bank asset within the meaning of the
NAMA Act, appointed Paul McCann of Grant Thornton, 24-26
City Quay, Dublin 2 to be Statutory Receiver of the assets of
the Company charged by the said Assignment.
Dated this 22nd day of December, 2010.
NATIONAL ASSET MANAGEMENT AGENCY,
Treasury Building,
Grand Canal Street,
Dublin 2.

COMPANIES ACTS 1963-2009
NOTICE OF APPOINTMENT OF A RECEIVER
MELLVIEW ESTATES LIMITED
(In Receivership)
Notice is hereby given that on 20 December, 2010, the National
Asset Management Agency (‘‘NAMA’’), under powers
conferred upon it by the National Asset Management Agency
Act 2009 (the ‘‘NAMA Act’’) and Assignment dated 27 October
2006 (the ‘‘Assignment’’), made between Mellview Estates
Limited (the ‘‘Company’’) and Anglo Irish Bank Corporation
Limited (formerly Anglo Irish Bank plc), which Assignment is
an acquired bank asset within the meaning of the NAMA Act,
appointed Paul McCann of Grant Thornton, 24-26 City Quay,
Dublin 2, to be Statutory Receiver of the assets of the Company
charged by the said Assignment.
Dated this 22nd day of December, 2010.
NATIONAL ASSET MANAGEMENT AGENCY,
Treasury Building,
Grand Canal Street,
Dublin 2.

COMPANIES ACTS 1963-2009
NOTICE OF APPOINTMENT OF A RECEIVER
LYNDONBARRY PROPERTIES LIMITED
(In Receivership)
Notice is hereby given that on 20 December, 2010, the National
Asset Management Agency (‘‘NAMA’’), under powers
conferred upon it by the National Asset Management Agency
Act 2009 (the ‘‘NAMA Act’’) and Debenture dated 21 June,
2006 (the ‘‘Debenture’’), made between Lyndonbarry Properties
Limited (the ‘‘Company’’) and Anglo Irish Bank Corporation
Limited (formerly Anglo Irish Bank plc), which Debenture is
an acquired bank asset within the meaning of the NAMA Act,
appointed Paul McCann of Grant Thornton, 24-26 City Quay,
Dublin 2 to be Statutory Receiver of the assets of the Company
charged by the said Debenture.
Dated this 22nd day of December, 2010.
NATIONAL ASSET MANAGEMENT AGENCY,
Treasury Building,
Grand Canal Street,
Dublin 2

Anglo Irish Bank – related companies

This is a list of over 1,000 Anglo Irish Bank subsidiaries or related companies, with a path of minimum 25.01% of control – known shareholders. Most of the companies are British registered, and can be up to 9 times removed from the parent (ie – subsidiaries of subsidiaries of subsidiaries and so on). If you see duplicates it’s because there is a byztanine ownership structure. Listing doesn’t necessarily imply control, it may only mean that Anglo lent to the company in the past. And obviously, inclusion does not imply wrongdoing.

1.  ANGLO IRISH BANK CORPORATION PLC
ANGLO IRISH COVERED BONDS FINANCE LIMITED
ANGLO IRISH CORPORATE BANK LIMITED
ANGLO IRISH ASSET MANAGEMENT LIMITED
ANGLO IRISH NOMINEES LIMITED
EXHORT LIMITED
MOSCHUS LIMITED
PHAENOM LIMITED
WORLD 2000 ENTERTAINMENT LIMITED IE
ANGLO IRISH BANK ESOP LIMITED
CERTIFICATION EUROPE LIMITED
FOXGRANGE LIMITED
THE LITHOGRAPHIC GROUP LIMITED
INTERNATIONAL COLOUR WEB LIMITED IE
LITHOGRAPHIC UNIVERSAL LIMITED
LITHOSET LIMITED
THE LITHOGRAPHIC GROUP LIMITED
SOLITUDE LIMITED
CORE DIRECT MARKETING LIMITED
FOILSEACHAN NA ROSANN TEORANTA IE
MAC COMMUNICATIONS LIMITED
FOILSEACHAN NA ROSANN TEORANTA IE
VISITOR PUBLICATIONS LIMITED
WINSTONE PUBLISHING LIMITED
MAC COMMUNICATIONS LIMITED
LITHOGRAPHIC WEB PRESS LIMITED
ANGLO IRISH NOMINEES LIMITED
ANGLO IRISH INTERNATIONAL FINANCE IE
ANGLO IRISH EQUITY LIMITED
AALP GALASHIELS LIMITED
AALP SUNBURY LIMITED
ANGLO IRISH INTERNATIONAL FINANCE IE
ANGLO IRISH INTERNATIONAL FINANCIAL SERVICES LIMITED
PAGNOL LIMITED
IBOC LIMITED
REGENT PROPERTY S.N.C. DI REGENT
REGENT MILANO DIFFUSIONE S.R.L.
TINCORRA INVESTMENTS LIMITED
2.  ANGLO IRISH CAPITAL FUNDING LIMITED KY
3.  ANGLO IRISH CAPITAL UK (2) LP
4.  ANGLO IRISH CAPITAL UK (3) LP
5.  ANGLO IRISH CAPITAL UK LP
6.  ANGLO IRISH COVERED BONDS LLP
7.  PROODOS FUNDING LIMITED
8.  ANGLO IRISH ASSET FINANCE PLC
9.  ANGLO IRISH PROPERTY LENDING
GARLETON DEVELOPMENT COMPANY
CRIFFEL VENTURES LIMITED
URAICH LIMITED
10.  STEENWAL B.V.
11.  ANGLO IRISH MORTGAGE BANK
12.  ANGLO IRISH BANK ESOP LIMITED
13.  ANGLO IRISH BANK LIMITED
ANGLO-IRISH BANK (NOMINEES) LIMITED IE
NAVID LIMITED
EARAGAIL EISC TEORANTA
EARAGAIL RESEARCH & DEVELOPMENT IE
TYSAN INVESTMENTS
BALCUIK LIMITED
ATRIUM PROPERTY DEVELOPMENTS
MARTLET HOLDINGS
C.F. LIMITED
GOURMET MUSHROOM COMPANY
THE GOURMET MUSHROOM COMPANY
IRISH BUYWAY LIMITED
OCTAGON ONLINE SERVICES LIMITED
SPARTA FINANCIAL SERVICES
A.E.D. LIMITED
ANGLO IRISH CAPITAL PARTNERS
ANGLO IRISH CORPORATE BANK
ANGLO IRISH EQUITY LIMITED
ANGLO IRISH FINANCIAL SERVICES
ANGLO IRISH FUNDING 1 LIMITED
ANGLO IRISH MORTGAGE BANK
ANGLO IRISH FUNDING 2 LIMITED
ANGLO IRISH MORTGAGE BANK
ANGLO IRISH FUNDING 3 LIMITED
ANGLO IRISH MORTGAGE BANK
ANGLO IRISH FUNDING 4 LIMITED
ANGLO IRISH MORTGAGE BANK
ANGLO IRISH FUNDING 5 LIMITED
ANGLO IRISH MORTGAGE BANK
ANGLO IRISH FUNDING 6 LIMITED
ANGLO IRISH MORTGAGE BANK
ANGLO IRISH INTERNATIONAL FINANCE
ANGLO IRISH INTERNATIONAL
FINANCIAL SERVICES LIMITED
ARAGONE LIMITED
BUYWAY GROUP LIMITED
INDUSTRIAL FUNDING TRUST LIMITED
IRISH BUYWAY LIMITED
KNIGHTSDALE LIMITED
C.D.B.INVESTMENTS LIMITED
CDB (U.K.) LIMITED
AMBLEPATH PROPERTIES LIMITED
132 COMMERCIAL ST MANAGEMENT COMPANY LIMITED
ANGLO IRISH ASSET FINANCE PLC
ANGLO IRISH CAPITAL GP LIMITED
ANGLO IRISH CARRY PARTNER LIMITED
ANGLO IRISH COMMERCIAL PROPERTIES (NO.1) LIMITED
ANGLO IRISH COMMERCIAL
PROPERTIES LIMITED
ANGLO IRISH CREDIT PLC
ANGLO IRISH LEASING LIMITED
BERFORS NOMINEES LIMITED
MOOREVALE ESTATES LIMITED
MOOREVALE INVESTMENTS LIMITED
MOOREVALE INVESTMENTS (BRIGADE HOUSE) LIMITED
MOOREVALE INVESTMENTS (MARGARET STREET) LIMITED
MOOREVALE INVESTMENTS (NEW PREMIER HOUSE) LIMITED
MOOREVALE INVESTMENTS (SARDINIA HOUSE) LIMITED
SOMERSTON HOTELS (GLASGOW AIRPORT) LIMITED
SOMERSTON HOTELS (STIRLING)
ALCHEMIST ANGLO PROPERTY
VENTURES LIMITED
ALCHEMIST ANGLO PROPERTY
VENTURES (SUNDERLAND) LIMITED
SOMERSTON HOTELS (EDINBURGH WATERFRONT) LIMITED
I F T NOMINEES LIMITED
SCOTTISH HIGHLAND HOTELS LIMITED
STIRLING HIGHLAND HOTEL LIMITED
CARLTON HOTEL (EDINBURGH) LIMITED
BELGRAVE RESIDENTIAL ASSETS
BELGRAVE RESIDENTIAL INVESTMENTS
CARLTON HOTEL (EDINBURGH) LIMITED
NC (RES) LIMITED
SALLYPORT HOUSE MANAGEMENT
SALLYPORT HOUSE NOMINEE LIMITED
SPATH HOLME LIMITED
SPATH HOLME MANAGEMENT LIMITED
SOUTH EASTERN RECOVERY II LIMITED
SOUTHERNESS HOLIDAY VILLAGE (HOLDINGS) LIMITED
SOUTHERNESS HOLIDAY VILLAGE
SOUTHERNESS HOLIDAY VILLAGE
STANLEY DAVIS GROUP LIMITED
CAPITAL COMPANY SERVICES LIMITED
CAPITAL NOMINEES LIMITED
360 DEGREES DESIGN LIMITED
AUDITAS MANAGEMENT & CONSULTING
BCL INVEST LIMITED
BOLTON MAY LIMITED
CANTERBURY SERVICES LIMITED
CLEAR FORMATION LIMITED
MITCHAM BUILDING LIMITED
CONNEXION WAY LIMITED
CROSSWAVES ESTATES LIMITED
DB INVEST LIMITED
DIMEMARK LIMITED
EPAYMENTS SERVICES LIMITED
FOOD DISTRIBUTION INTERNATIONAL
MANAGEMENT LIMITED
Q.D.F. (UK) LIMITED
GARTLAND LIMITED
GLOBAL ADVISING AND ENGINEERING
GREEN VALUES LIMITED
HOPE FILMS LIMITED
K2 FARM LIMITED
KILOSPACE LIMITED
LILY ENTERPRISES LIMITED
MANAGEMENT SECRETARY LIMITED
MARTIN JACOB INVESTMENTS LIMITED
MAYBACH CONSULTING LIMITED
MAYBACH LIMITED
MEGAFISH LIMITED
MILLENNIUM ADJUSTERS LIMITED
NEW SPIRIT LIMITED
NOBLEVOICE LIMITED
ONE CASEMATES LIMITED
PHARMA INNOVATIONS LIMITED
PROFORCE SYSTEMS LIMITED
PROJECT LIGHT LIMITED
QUOTEMANOR LIMITED
S.M.L. INVESTMENTS LTD
ST. MARTINS INVESTMENTS LIMITED
STAMPFLAT NOM X LIMITED
STAMPFLAT LIMITED
STAR SHIPPING SERVICES LTD
STEWARD DIGITAL ART LIMITED
UNIPHARMA UK LIMITED
VASTPOST LIMITED
VITALITY FOOD LIMITED
WINTER WOOD LIMITED
WORLDSIDE LIMITED
YORKWAY INTERNATIONAL LIMITED
HANGERS PLUS UK LIMITED
TIMESHIFT LIMITED
BETPOINT ELECTRONICS LIMITED
BONDFIELD & PARTNERS LIMITED
CARTEM INVESTMENTS LIMITED
CORNUS INDUSTRY LIMITED
CUMBERLAND SERVICES LIMITED
DOVECELL LIMITED
EDITPOINT LIMITED
ELMTOWN LIMITED
EMME IMAGES LIMITED
FESTOON CONSTRUCTION LIMITED
BANCA CR FIRENZE ROMANIA SA
GREG FIRST LIMITED
IWE INVESTMENTS LIMITED
JANVY INVESTMENTS LTD
LOGISTIC AND HANDLING SYSTEM
MANHATTAN DIAMONDS PLC
OPALWAY TRADING LIMITED
STONECHOICE LIMITED
TAMUS LIMITED
THOMPSON CHEMICAL LIMITED
WILMINGTON HOUSE LIMITED
REGENT HOLDINGS LIMITED
BARWARE SOLUTIONS LIMITED
CONSULTING & SPORT SERVICES LTD
DIGITAL VIEW GROUP LIMITED
DIGITAL VIEW GROUP (CAYMAN) LTD
DIGITAL VIEW LIMITED
ESPRIT DIGITAL LIMITED
PRIZE MOBILE GROUP PLC
PRIZE MOBILE LIMITED
GAMES AND GAMING LTD
XOGO LIMITED
PRIZE MOBILE SOLUTIONS LIMITED
MARENGO MINING LIMITED
MARENGO MINING (PNG) LTD
Continue reading “Anglo Irish Bank – related companies”

Central Bank emergency lending soars to €44.67bn

A follow up from myself and Lorcan’s post last month on how much liquidity the Irish Central Bank is providing to Irish banks. November data has just been released and the figures are stark, a jump from €34bn in October to €44.67bn in November:

Of course that’s not the only story. Lending to euro area credit institutions rose as well, from €130bn to €136bn. As Lorcan points out on his blog:

Firstly, banks other than Anglo are now accessing this facility – Total loans from Anglo destined for NAMA were €20bn

Secondly, the ECB is NOT accepting NAMA promissory notes as collateral for repo operations. If it was, there would be no need for this facility from the Irish central bank. Presumably, the fact that NAMA is paying with promissory notes (basically an IOU) rather than government guaranteed bonds means they are not repo-able.

So, what does all this mean?

Well, the first broad point is that the amount of liquidity – both ECB and ‘exceptional’ – being provided to the Irish banking system has reached utterly unsustainable levels. At a combined total of €181.110bn, current ‘extend and pretend’ policies must be close to their limit.

The €7.9bn bond purchase

Last month Anglo confirmed that it had repaid €7.9bn in bonds at the end of September. According to the Irish Independent:

Banking sources yesterday stressed that there was never any question of Anglo not repaying the debt that fell due in September, since the bank is legally obliged to pay government-guaranteed debt.

The Department of Finance categorically rejected suggestions that it had been involved in any deal to refinance Anglo’s balance sheet, stressing that funding matters are handled by the bank.

The exact details of the September refinancing are unclear but it is understood that the bulk of the money came from the ECB, with Anglo pledging various securities as collateral.

Market sources stress that this is the normal way for Irish banks to refinance bonds that fall due, given the state of the international markets.

A spokesman for the Central Bank said “all of the guaranteed bonds issued by Irish banks have been repaid by the Irish banks as they fell due”.

Myself and Lorcan were chatting about this and Lorcan pointed to an interesting item on the Irish Central Bank’s recent data. Here is a spreadsheet from the CB. Look close at the ‘other assets’ and notice the jump from August to September. In August the other assets of our Central Bank amounted to €14,378 million. By the end of September, the figure had jumped to €21,195 million, a jump of €6.8bn. Historically, this is the biggest jump in other assets, excluding the period around Anglo nationalisation (Feb 2009) and the period around the Northern Rock crisis (September 2007). But what better illustrates this is a graph. So here is a timeline of ‘other assets’ of our Central Bank from 2003 to September 2010:

Here is the table:

So the question is: Where did Anglo Irish get €7.9bn to pay back bondholders, and did our Central Bank foot the bill? And how involved were the ECB in this transaction? If the CB did what it looks like they did, we essentially just transferred the ‘asset’ from one state agency to another.

Extend and pretend policy confirmed

I’ve not seen any official acknowledgment that Anglo’s (and indeed to a greater extent NAMA’s) policy is one of delay and pray, otherwise known as extend and pretend, until today. Speaking at an event in New York two weeks ago, Anglo’s US head said:

“Extend and pretend… it’s actually been the right strategy,” Garrett Thelander, executive vice president of the embattled lender, told a crowd of investors, brokers and developers at GreenPearl’s Distressed Real Estate Summit yesterday.

Is it the right strategy for all loans though?

Quotes of Brian Lenihan

Periodically updated as per submissions. Add to the post by submitting it via the comment box below or emailing them to mark[@]thestory[.]ie (remove the brackets). Please provide a link to cite your source.

Updated in November 2010 here, which is the post cited by Vincent Browne in his Irish Times column.

Quotes from Brian Lenihan since the bank guarantee:

On Breakfast with Newstalk, April 26 2010.

First of all, that’s the position in 2009, Eurostat hasn’t decided it yet, that’s our assesment of how they will decide it, we’ll still argue the toss with them. We have to deal with 2010 yet, but let’s assume that you’re right for a minute and that all the €8bn has to be added on in 2010. Let’s assume that. We won’t be borrowing the money, we’ll be borrowing the money over a period of ten or fifteen years. We’ll actually be upfronting – in accountancy terms – the figure, but we will not in fact be borrowing… – April 26 2010.

Also on Breakfast with Newstalk

Now that I’m the shareholder in Irish Nationwide I will clearly ensure that whatever money is owed by Mr Fingleton is paid by Mr Fingleton. – April 26 2010.

Also on Breakfast with Newstalk

BL: No, no, listen, listen. This not good for the country and it’s inaccurate. If next year we’re obliged to include the €8bn, the €8bn will not actually be borrowed next year the device of the promissory note means we borrow…

Ivan Yates: No, I know the promissory note is over ten years. You’re missing the point…

BL: No you’re missing the point! This is an accounting device! This is not real borrowing! What the markets look at is real borrowing. Not accountancy devices… – April 26 2010.

Speaking to media…

“The decisive and bold steps we have taken are not popular; and the honest and full disclosure by the Government and its agencies of the appalling mess we have uncovered within our banks has shocked the nation,” Mr Lenihan told the Dail.  “But I do believe that there is recognition among the citizens that the measures we have taken are necessary. And I believe the work of NAMA in cleaning up the banks’ balance sheets and forcing them and their borrowers to face up to their losses is winning the respect of the public.” – April 21 2010,  Irish Independent

“One of the good things about the steep discount, averaging 47 per cent, is that the residential property market will now be stabilised at a realistic level… You can now buy in confidence that the price is realistic.” – April 4 2010, Irish Independent

[Submitted by CO’D]:

The Financial Regulator has advised that all the financial institutions in Ireland will continue to be subject to normal ongoing  regulatory requirements. This very important initiative by the Government is designed to safeguard the Irish financial system and to remedy a serious disturbance in the economy caused by the recent turmoil in the international financial markets. As far as the question of ‘moral hazard’ is concerned, it will be a priority for the Government to ensure that the highest regulatory standards and standards of corporate governance apply in all of the institutions concerned including in relation to lending practices to safeguard the interests of taxpayers against any risk of financial loss. –Department of Finance statement, September 30 2008

[Submitted by CO’D]: During Dáil debate on credit institutions and financial support,

Olivia Mitchell (FG): We need to see the terms and conditions to know what will happen with regard to these people. Is there any requirement for the banks to restructure their loans? Will they be allowed to make a massive number of repossessions and have fire sales, driving house prices down further and sending the economy into even deeper recession? Has the Government any plan to deal with this?

Brian Lenihan: This is the plan.

Olivia Mitchell: […] However, we need a return to the banks of old — to the image we had of them as being dull, staid, boring, cautious and careful. We no longer have that image. What is the Government’s plan to create the conditions that will ensure this happens? What will happen to restore confidence in the banking system? If we do not restore confidence in the banking system, what the Minister is doing now——. I do not know what the Minister is laughing at.

Brian Lenihan: I am not laughing. I am allowed to smile. – October 1 2008

[Submitted by DC]: As reported by Simon Carswell in The Irish Times…

MINISTER FOR Finance Brian Lenihan has said the bank guarantee scheme was “a necessary first step” and “the cheapest bailout in the world so far”.

Mr Lenihan said the guarantee was “the cheapest bailout” compared with bank rescues in other countries, including the UK and the US, where “billions and billions of taxpayers’ money are being poured into financial institutions” – October 24 2008

Irish Times…

“We are not rushing into the banks without knowing precisely what the position is in those banks” – Nov 20 2008

During the Stabilisation of Public Finances debate, Dáil Eireann

In the context of any capitalisation the due diligence exercise will yield further information to enable us to do a far more precise identification of risk before we formulate policy on it. I would be reluctant to commit the taxpayer on any issue connected with risk without a full and definitive assessment of the risk in the institutions themselves and we must await this assessment. – Feb 5 2009

Following the publication of Anglo Irish Bank’s 2009 results. Minister Lenihan said he welcomed the increased scrutiny of Anglo as an opportunity to bring openness to the bank…

“which will ultimately allow us to draw a line under past activities”. “It is an opportunity for Anglo to employ a fully transparent approach to addressing the inappropriate activities that took place at the bank and provide comprehensive details to all stakeholders who deal with Anglo and who deal with Irish financial institutions generally.” – Irish Independent, Feb 21 2009

When challenged as to why he was not nationalising banks (at this time the State had already nationalised Anglo Irish Bank and taken a 25 per cent stake in Bank of Ireland and AIB).

“I do really want to scotch the idea that there are huge risks to the taxpayer in the valuation process because we are not nationalising these institutions.” – Irish Times, May 18 2009

Nama Bill, Dáil Eireann.

NAMA will ensure that credit flows again to viable businesses and households by cleansing the balance sheets of Irish banks. This is essential for economic recovery and the generation of employment. It will ensure that we avoid the Japanese outcome of zombie banks that are just ticking over and not making a vibrant contribution to economic growth. – Sept 16 2009

Nama Bill, Dáil Eireann.

I am not prepared to contemplate the establishment of an entity that has no responsibility or accountability to this House. – Sept 16 2009

Nama Bill, Dáil Eireann

Nothing in the NAMA legislation will result in more repossessions of family homes. – October 14 2009

On the nationalisation of Anglo, during a debate on banking regulation in the Dáil

This decisive step was taken to safeguard the interest of the depositors of Anglo Irish Bank and the stability of the economy. I want to assure the House that this decisive step was taken to ensure the new nationalised bank will collect all debts due from persons who owe moneys to the institution. – Feb 18 2009

On the housing market in 2008 in speech to Seaned Eireann.

However, what we do know is that the underlying demand for housing remains strong, driven by a relatively young population and continued inward migration. While we may experience a year or two of sub-50,000 completions, it is reasonable to expect over the medium term that annual completions will return to sustainable levels which will remain high by international standards, reflecting the strong underlying demand for housing in Ireland – May 14 2008

To the Irish Independent, on housing prices…

One of the good things about the steep discount, averaging 47 per cent, is that the residential property market will now be stabilised at a realistic level. You can now buy in confidence that the price is realistic.” –  April 4 2010

In response to written question from Kathleen Lynch

Taking account of the advice received the Government has proceeded with a comprehensive recapitalisation of Ireland’s two main banks and with the nationalisation of Anglo Irish Bank. The Government is also in discussions with the other covered institutions, Irish Life & Permanent, Educational Building Society and Irish National Building Society concerning their respective positions. – Feb 18 2009

In response to a written question from Arthur Morgan

The recapitalised banks have reconfirmed their commitment to an extensive credit package which will help to increase lending capacity to small and medium enterprises by 10% and to provide an additional 30% capacity for lending to first time buyers in 2009. The credit package also provides for a €100m environmental and clean energy innovation fund to be established by each bank. All the steps that I have outlined have been taken by the Government to ensure that the public interest is secured so that the financial system in Ireland meets the everyday financial needs of individuals, businesses and the overall economy. – March 26 2009

Written answer to Arthur Morgan

Our approach will facilitate a sustained flow of credit on a commercial basis to individuals, households and businesses in the real economy. – July 8 2009

When questioned on the delays in implementing Nama legislation on Morning Ireland

“We can’t have a lawyers’ bonanza and that is another good reason why we have to get this right.” – May 18 2009

Kicker; written answer to Joan Burton

Arthur Cox solicitors have been engaged by my Department since September 2008 to provide advice in relation to general banking matters including the Bank Guarantee scheme, the nationalisation of Anglo Irish Bank and the recapitalisation of AIB, Bank of Ireland and Anglo Irish Bank. The company was paid €1,628,024 in 2008 and €2,254,263 has been paid to date in 2009. The sum of €5.4 million has been allocated for legal advice for 2009 and an estimate of €3 million has been set aside for legal advice in 2010.

PriceWaterhouseCoopers was retained by the Financial Regulator in late 2008 to assist the Financial Regulator with a review of the financial and capital positions of Irish banks and to enable the Financial Regulator to advise the Government on what action needed to be taken. The work undertaken involved an initial high level assessment of the capital and liquidity levels of the institutions, stress testing of the institution’s loan portfolios over a three year period, and review the valuation of properties held as collateral against the main property loans.

The total fees paid by the Financial Regulator to the company in respect of the work was €3.8 million, which has been completed. In addition, the Financial Regulator has paid €0.84 million to Jones Lang La Salle for financial and property consultancy services in relation to the Bank Guarantee Scheme.

The National Treasury Management Agency paid a total of €7.3 million to Merrill Lynch for investment banking advice up to 30 June 2009. Following a competitive tender process in July, Rothschild have now been awarded the contract for investment banking advice. The NTMA has also retained an economist however the terms of his contract with the NTMA were agreed on a confidential basis. In addition, following a competitive tender process, the NTMA engaged HSBC and Arthur Cox to provide advice in relation to NAMA. – Sept 22 2009

NOTE: I’ve gone through the Dáil record and archives of the Times and Indo, but haven’t listened to radio or TV interviews. If anyone has a bit of time to go back and listen to a Morning Ireland/Prime Time/The Last Word/Whatever interview… t’would be useful.

* a word members of our Government like to use when scripting excuses for the negative outcomes that result from badly implemented policy or regulation. Usually follows “unforeseen”.

More Anglo Irish Bank subsidaries

Here are more to add to the long list (some have been mentioned before), and it is worth noting all of these companies are subject to the Ethics in Public Office Act:

Anglo Irish Bank Limited
Anglo Irish Assurance Company Limited
Anglo Irish Corporate Bank Limited
Anglo Irish International Finance
Anglo Irish Asset Management Limited
Buyway Group Limited
Pagnol Limited
Anglo Irish Nominees Limited
Anglo Irish Bank (Nominees) Limited
Geranth Limited
Pegasus Nominees Limited
Anglo Irish Bank ESOP Limited
Anglo Irish Bank Capital Partners Limited
Anglo Irish Administration Limited
Anglo Irish Financial Services Limited
CF Limited
Modify 5 Limited
Anglo Irish International Financial Services Limited
Ansbacher Bankers Limited
IBOC Limited Irish
Buyway Limited
Knightsdale Limited
Sparta Financial Services
Fitzwilliam Leasing Limited
Anglo Irish Mortgage Bank
Anglo Irish Funding 1 Limited
Anglo Irish Funding 2 Limited
Anglo Irish Funding 3 Limited
Anglo Irish Funding 4 Limited
Anglo Irish Funding 5 Limited
Anglo Irish Funding 6 Limited
Anglo Irish Capital Funding Limited Steenwal B.V.
Anglo Irish Bank Corporation (International) PLC
Anglo Irish Holdings IOM Limited
AIT (Nominees) Limited
Anglo Irish Nominees (IOM) Limited
Anglo Irish Trust (IOM) Limited
Alexan Limited
Beaugrand Sarl
Belalan Bischoffshein Freehold SPRL
Belalan Bischoffshein Leashold SPRL
Belalan Holdings SPRL
Belalan Louise Freehold SPRL
Belalan Louise Leashold SPRL
Belalan Meir Freehold SPRL
Belalan Meir Leashold SPRL
Berala Sarl
Castle Farm Campus (Telford) Limited
Chancery Place Limited Sarl
Erste DIG Vermogensverwaltungs GmbH
Fellstar Limited
Fenlay Limited
Finsbury Dials Sarl
Harpen Ostenhellweg GmbH
Heywood Park Limited
Kernesk Limited
Ladyland Limited
Moreton Limited
Newbury (GP) Limited
Petersen Limited
Portwall One Limited
QBC Czech SRO
QDH Czech SRO
Racol Sarl
Sajola Sarl
Salado Enterprises Limited
Sheps (PHFL) Limited
Starcrest Limited
Talca Enterprises Limited
Tarnold Holdings Sarl
West Port Sarl
Westow Limited
Woolgate SA
Zeus Investments 1 SPRL
Zeus Investments 2 SPRL
555 NMA Investors LLC
Alpha Ceres GP LLC
Alpha Ceres REIT, Inc.
Beta Ceres GP, Inc.
Delta Ceres (STAP), Inc.
Gamma Ceres GP, Inc.
Zeta Ceres Capital, Inc.
Zeta Ceres GP, Inc.
Zeta Ceres New York LLC
Zeta Ceres REIT, Inc.
Zeta Ceres, Inc.
Anglo Irish Boston Corporation
Anglo Irish New York Corporation
Anglo Irish Chicago Corporation
10 South State Street Holdings LLC
10 South State Street Property LLC
Mainland Investments GP Inc
Mainland Ventures Corp
Project B Investor Limited Partnership
Project B Investor II Limited Partnership
MBB Investment Partners Limited Partnership
CWB Holdings Limited Partnership
CWB Hotel Limited Partnership
CWB Retail Limited Partnership
CWB Apartments Limited Partnership
Beta Ceres Limited Partnership
Gamma Ceres Limited Partnership
Zeta Ceres Limited Partnership
SEAPORT CPA Limited Partnership
10 South State Street Property Investor, Limited Partnership
Mainland Investments 625 NMA, Limited Partnership
TA Newbury Street Fund Investor, Limited Partnership
10 South State Street Property GP, LLC
Anglo Irish Equity Limited
Anglo Irish Private Capital Limited
Anglo Irish Leasing Limited
Berfors Nominees Limited
Finance 2000 plc
Clickinput Limited
CDB (UK) Limited
Anglo Irish Property Lending Limited
Anglo Irish Property Investors Limited
Anglo Irish Finance Limited
Anglo Irish Credit plc
Anglo Irish Commercial Properties (No. 1) Limited
Anglo Irish Commercial Properties Limited
Anglo Irish Carry Partner Limited
Anglo Irish Capital GP Limited
Anglo Irish Asset Limited
Anglo Irish Asset Finance plc
Amblepath Properties Limited
Argyle Investment Finance Limited
Anglo Irish Treasury Financing Limited
Anglo Irish GP Holdings Limited
Anglo Irish Property Investors GP Limited
Sutherland Finance And Leasing
Anglo Irish Covered Bonds Limited Liability Partnership
AALP Guernsey Limited
AALP Galashiels Limited
AALP England Limited
AALP Sunbury Limited
IFT Nominees Limited
CDB Investments Limited
Industrial Funding Trust Limited
Anglo Irish German Retail Limited
Soundbow Limited Liability Partnership
Anglo Irish Covered Bonds Finance Limited
Moorevale Investments Limited
Moorevale Investments (Brigade House) Limited
Carisbrooke Anglo Ventures Limited
Carisbrooke Property Investments Limited
Carisbrooke Properties Limited
Carisbrooke Properties (Barry) Limited
Carisbrooke Central Investments Limited
Carisbrooke Properties (Basingstoke) Limited
Carisbrooke Central Limited
GPF Investments Limited
Carisbrooke Lime Street Limited
Countryroad Investments Limited
Taurus Euro Retail Holding Sarl
Taurus Euro Retail Finance Sarl
Taurus Euro Retail Investment Sarl
T-R RE-Fund 1 GmbH
Monument Securitisation (CMBS) Limited
Monument Securitisation Holdings Limited
Monument MT No. 2 Limited
Monument Securitisation (CMBS) No. 2 Limited
Monument Securitisation Holdings No. 2 Limited

Central Bank Commission appointees

Also worth noting was this:

As provided for in legislation, the terms of office of the first appointees will vary in length in order to ensure that future vacancies on the Commission will be staggered. The appointees and their terms of office are as follows:

Professor John Fitzgerald (5 years)
Mr. Max Watson (5 years)
Mr. Michael Soden (4 years)
Mr. Des Geraghty (4 years)
Professor Blanaid Clarke (3 years)

They will join the ex-officio members: Professor Patrick Honohan (Governor), Mr. Matthew Elderfield (Head of Financial Regulation), Mr. Tony Grimes (Head of Central Banking) and Mr. Kevin Cardiff (Secretary General of the Department of Finance) on the Central Bank Commission.

The Minister said:
“These appointments to the Central Bank Commission will bring a wealth and diversity of talent and experience to the Commission and represents a very significant step in the reform process.

So, the usual suspects then.

'Where we are'

The disconnect between the media and the markets in the last week or so has perturbed me. The coverage in the days following the bond auction last Tuesday gave the impression that all was well after investors ‘queued up’ to buy our bonds, as if such an event could only be positive. Some Sunday commentators did call BS on it but the conventional wisdom doesn’t appear to have changed. Similar reporting has continued over the last week.

The following is an attempt put a pin on where exactly it is ‘we are’ when Brian Cowen says “we are where we are”; an attempt to explain what happened in the days prior to the auction, it’s impact, and the current decisions facing the government.

It’s written in as plain language as I could muster. Wonks, I apologise in advance.

On Prime Time last Tuesday night Fianna Fáil TD Thomas Byrne ran the prescribed government line on the bond auction. He gave the impression that the bond holders queuing up to buy our bonds was proof-positive of the viability of the State.  “If they didn’t think our economy was manageable they wouldn’t be investing in our bonds”, he said, “they wouldn’t be five times oversubscribed on one of the bonds and the three times oversubscribed on the other. They are willing to put their cash into this country because they believe we can pay it back.” Continue reading “'Where we are'”