Comments on: New Responsibilities for NTMA

By: Pat Donnelly

Pat Donnelly — Fri, 05 Feb 2010 14:03:02 +0000

http://freedom00is00earned.blogspot.com/2010/02/ntma-take-over-from-cb-of-i.html

By: David O'Donnell

David O'Donnell — Fri, 05 Feb 2010 12:54:40 +0000

@Greg

Kum bak Flann O’Brien - man ahead of his time! (-;

By: Greg

Greg — Fri, 05 Feb 2010 11:21:43 +0000

@ David O’Donnell

“When Black Holes Explode: Measuring the Emission from the Fifth Dimension”

I wonder what the Fifth Dimension of the Irish Banking crisis is.

http://www.universetoday.com/2008/03/16/when-black-holes-explode-measuring-the-emission-from-the-fifth-dimension/

By: David O'Donnell

David O'Donnell — Fri, 05 Feb 2010 00:51:41 +0000

@Peter Oakes

Thanks for this. The ‘Black Hole’ is being silently legitimized. Nothing comes out of ‘black holes’ - not even a scream.

By: Peter Oakes

Peter Oakes — Thu, 04 Feb 2010 23:53:00 +0000

I noticed that at the Select Committee stage on the Criminal Justice (Money Laundering & Terrorist Financing) Bill 2009 - which completed on 14/01/2010 - that the NTMA will be listed as a body which is specifically excluded from filing mandatory reports to Garda and Revenue where it becomes suspicious of financial crime. Given the NTMA’s role in virtually overseeing the operation of banks, surely it will be in a prime position to spot (directly or indirectly via NAMA) financial fraud and other crimes perpetrated by banks and possibly their executives?

By: Cyberianpan

Cyberianpan — Wed, 03 Feb 2010 23:44:27 +0000

It makes sense to treat the government involvement with the banks like an “investment” and the NTMA has been used to keep arm’s length before.

Also recall that Scott Rankin, moved from being Davy’s bank analyst , to being “our” bank analyst a while back:
http://www.independent.ie/business/irish/department-of-finance-job-for-top-davy-analyst-1920904.html

It’s clear, that at the very least, there’s contingency plans in place for state majority stakes…. though the government may well take quite a “creative” approach to same

By: yoganmahew

yoganmahew — Wed, 03 Feb 2010 22:28:40 +0000

In addition to the secrecy aspect, one suspects that the need for secrecy is about to be augmented as the state becomes majority owner of the banks. The majority ownership will cost about 10 bn, by the looks of it, for 70-80% of the big two.

I suspect it will be paid for in something similar to NAMA bonds, that is, equity bought with directly issued sovereign bonds. Like the NAMA bonds the risk of these going off the bank balance sheets is huge. No doubt the banks will then use these to pay back the state… expect 7 bn of preference shares to be redeemed, with coupons paid in recap bonds. Bills for guarantees and deposit insurance paid for in same method.

The recap bonds and the NAMA bonds will be distinguished from normal sovereign bonds by a little pyramid printed in the top right-hand corner.

By: Eoin

Eoin — Wed, 03 Feb 2010 17:02:32 +0000

They’re basically making the NTMA the total manager of the banking system. Would indicate a lack of belief in the CBI to fulfill this role, which may or may not be related to their (non)performance leading up to the crisis, albeit that being under a different Governor. The NTMA has performed extremely well in recent years. in contrast.

By: David O'Donnell

David O'Donnell — Wed, 03 Feb 2010 14:09:38 +0000

@Joseph

I ain’t no cynic - critical skeptic at times alrite.

By: Greg

Greg — Wed, 03 Feb 2010 14:04:58 +0000

One slightly used bazooka?

By: Joseph

Joseph — Wed, 03 Feb 2010 14:01:26 +0000

@David O’Donnell - “and allows Minister Brian some strategic distancing from such a decision.”.

That would be the cynical view

…. but then the cynical view is usually proving to be correct these days

……… and no FOI :-(

@Brian Lucey - “What has it got in its pocketttttsssss?”

Holes.

… or ….

Is that your hand in your pocket Mr Lenihan/Cowen or are you about to shaft me?

By: Brian Lucey

Brian Lucey — Wed, 03 Feb 2010 13:48:12 +0000

Now why would the government want to hide “o the giving of advice on banking matters generally, including issues relating to crisis prevention, management and resolution”…. ?
What has it got in its pocketttttsssss?

By: Edgar.Morgenroth

Edgar.Morgenroth — Wed, 03 Feb 2010 13:03:34 +0000

@ Karl and Garo
Richard Bruton was quick off the mark last night to point out the reduced oversight e.g. no FOIs.

By: Garo

Garo — Wed, 03 Feb 2010 12:56:47 +0000

Karl,
As Constantin points out, the NTMA is a secret hush-hush body with very little to no public oversight. The Central bank on the other hand is not. If the government and the permanent government do not want too many uncomfortable questions asked, the NTMA is the way to go.

But naah, I’m just being paranoid! Am I?

By: David O'Donnell

David O'Donnell — Wed, 03 Feb 2010 12:51:06 +0000

… that should of course read €15 billion, and not a mere €5 billion - and maybe another €10 billion to come.

Looks like NTMA are going to earn their salaries. I wish them the best.

By: David O'Donnell

David O'Donnell — Wed, 03 Feb 2010 12:49:26 +0000

The NTMA has a very sound record.

There is also an elment of political astuteness here - in shifting the focus of the probable upcoming ‘bank heist’ on the National Pension Reserve Fund of circa €5 billion or so, which will place all other bank heists in Irish history into the halfpenny places - and allows Minister Brian some strategic distancing from such a decision.