17% of NAMA sold to Unnamed Investors

Jagdip, as ever, has the story, check it out here. Anyone know who these investors are or might be?

By Stephen Kinsella

Senior Lecturer in Economics at the University of Limerick.

33 replies on “17% of NAMA sold to Unnamed Investors”

Unknown Investment Services LLC – specialising in the the undead former assets of undead institutions.

Any unbalance sheet consequences for the national accounts unintentional

ok, i admit it – its me, i bought the 17%…

after my bitrhday yesterday i had a spare 17c in my pocket this morning, so tought – what the hell!!!

@seafoid
More than that, Spain appears to be ruling out bailing out its banks with public money…

@ Seafoid/Hogan

Spain wont set up a bad bank. It will set up real estate corporations to allow sale and/or wind down of some property-related loan assets. Anyone know what exactly the difference is between the two??

Perhaps Eoin Nama-espana will be more open to public scrutiny? Any thoughts on the purchasers of the 17%?

Text from Blind Biddy:

The Blind Biddy Hedge Fund is not involved. With the size of the stake, and Stoker’s anniversary, I suspect some hedgie matrixsQuidesque involvement.

Nice one Jagdip. Hope you like that bazooka I sent you last year. Have you tried it out yet? Training sessions in the Dublin mountains every sunday afternoons and wednedsay nights.

@Seafoid

Interesting article…
“”The government won’t create anything, neither a good bank nor a bad bank, and there won’t even be the smallest bit of public money available,” Mr de Guindos said. “What we have is a process of adjustment in the valuation of the assets, and that in turn should help their sale.”

Confidence

As the economy deteriorates, Spanish banks are expected to need more than the extra €53.8bn in new capital, the Bank of Spain had predicted.”

If our experience is anything to go by they will need a multiple of the 53.8b…
I think they have property down by 20%. Wonder what Morgan thinks.

Europe needs a bank resolution programme. It’s not too late for AIB.
They could throw in one for the car manufacturing sector while they are at ait.

Spain could also encourage bondwallahs to take equity stakes in the relevant banks. There are plenty of ways to skin a fat cat.

@seafóid

The problem with that fat cat is it’s all fur coat and no knickers (as my old dad used to say)!

Other options include:

Denis O’Brien

Employees of Bord Gais

The Barclay Brothers

Sheikh Khalifa bin Zayed al-Nayhan (after all he had to give $20 billion to Dubai, he could buy a chunk of NAMA for loose change).

How about Nat Rothschild? He could reverse NAMA into Bumi . They both have corporate governance issues.

Madam Bo Xilai. She could proffer NAMA a welcome drink and that would be the end of the matter.

Not sure but I vaguely recall some talk of a consortium from the UK. Which given we’re heading back to Sterling, might not be at all bad. So what makes up the 17%, is it UK based?

I see Haarde was convicted of negligence ..but no punishment.

“Haarde was convicted of failing to take the initiative to insure “a comprehensive and professional analysis of the financial risk faced by the state because of the risk of financial crisis.”

Could we convict anyone of this?

The taxpayer must hope that the 17% was not sold by NAMA at the same discount AngloIBRC agreed in the Siteserv deal. In the latter case some 110 million was reported as written off. Not a peep from the politicians, but woe betide any homeowner seeking a comparable percent-wise discount. Debt forgiveness, Irish style.

The funding structure of such an investment will be interesting (if we ever get the details). At what price did the transfer happen, given the decline in RE asset values?

Maybe the stake been paid for by a writer of credit protection, with out of the money CDS ? 😉

@ Paul W. – From October 2009 – http://www.irisheconomy.ie/index.php/2009/10/27/nama-spv-opportunity-for-private-investors-form-an-orderly-queue/ – the structure of the investment in the SPV is made clear. Whatever entity bought the stake from ILIM will get a return of the Irish 10-year bond yield, plus an extra 10% on wind-up, if NAMA makes a profit. If NAMA doesn’t make a profit, they lose their capital.

Being a bond-type investment, if the purchaser paid less than €17m, their potential return will be greater than the 10-year bond yield, but will cost NAMA no more than if ILIM had continued to hold their stake.

@ Colm Brazel

Agree with you about heading back to sterling and the faster the better. The referendum had been overtaken by events, dear boy! events!

@The Alchemist

“Debt forgiveness, Irish style”

Irish banks are regularly doing this kind of write off for businesses. Even U***** Bank… and dare I say how well the miscreant gets treated is proportional to how well he/she got on with their banking ‘relationship manager’ (aka golf partner, drinking buddy). And as you rightly point out, not a peep from politicians.

@PR Guy

In the light of all that is known about Irish polity and business, it would surprise few above ground if the ‘banks’ were writing off or at least discounting loans taken out by many of the great and the good, some of whom have had to downsize from leafy D4 & D6, to buy their shares – which when into the collateral for further loans, etc.

The ‘public interest’ directors, what exactly is their role?

@ Robert Browne,

Good to see the unions are waking up. Business people see the ESM/Compact as a turkey shoot and not Croke Park nirvana. Meanwhile the Labour party morphs into the greens and Sinn Fein are locked way back in 1916. There’s a huge and growing section of Ireland without any political representation and leadership whatsoever. Perhaps the union reps of business in Ireland should consider forming a political party?

Alchemist/PR Guy,
In the case of Siteserve, tha original owners who racked up debt in a crazy expansion have lost control of the businee to D O’B & the debt has been written down. The parallel in a mortgage situation would be repossession & eviction.

@Tullmcadoo

I don’t know anything about the details of the Siteserv deal but I can assure you, Irish banks are regularly writing off chunks of business debt down to what the business owner(s) can afford to pay back (for those who owe millions rather than thousands). I guess getting something back is better than letting them run off to the UK to declare bankruptcy and then come back here 12 months later to wave the V’s at you. And those old Blackrock/Clongowes/Belvedere/etc. schoolday relationships run very deep in Ireland too.

Same person or persons unknown that bought Britain’s gold from Gordon Brown. Any chance the payment was measured ounces?

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