The Bad Bank debacles

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The Bad Bank debacles

Post  Sirop14 on Tue Mar 30, 2010 6:37 pm

The Bad Bank debacles
In writing the first thread on this forum we have one very important challenge, issues confronting us from the Christian ethical prospective and paramount our Training in the field of Interdisciplinary – multidisciplinary encompassing the vast field of financial, monetary, banking science, benchmarks, regulative instruments, mechanism – what has led the global financial and monetary system to come to such state and where will this end go.

Equally in writing this first thread as well as the challenges facing all those with, working involved and coping with the new financial dimension of Europe and the world. We have in mind developing countries, in this case nation like Seychelles, Mauritius, Reunion, Madagascar, Comore our Colonial ancestors, the financial and monetary, system, banking, insurances they set in place. What we came to inherit, the current state of thing in term of banking in those countries, business and society.

We are also compelled the values, criteria’s that the authorities, Officials, prescribe or dictate such solution and mechanism. The approach of the politicians, political parties, the Judiciary, the Special police agencies set up to combat inappropriate banking, financial working and practice.
Yet the stark conclusion of the gigantic dimension of those who are responsible for the world finance, monetary stability, the size of the corruption. The tools, mechanism, products, benchmark and very practice.

We are one of those in Seychelles, the Indian Ocean who led the new world order, political and financial order. As much as the international Policing establishment, intelligence Services, other relevant bodies their dim view of our statement and action. In other words they only can decide and dictate when and what policy to adopt, think out and accept in those part of the world. They had better sit down and rethink their role and responsibilities.

Over the past 6months we have been having several visit from the IMF, African Development bank they have been addressing the officials and public in Seychelles as if they are very clean vested parties when they are defending and involved in a very dangerous and totally corrupted system. IN instances preventing our politicians, Officials, finance managers form developing new finance and monetary model – in Europe and other parts of the world the utter chaos which prevails particularly the use of Band Banks.

We recall only too well the issues of Writing Africa debt $ 500 billions and the conference in Edinburg. Had the African heads of state put their foot down and insisted we create a special Bank in Africa to absorb all the bad debts those unserviceable – what the world reaction would have been. Yet the European, the White man can do this.

The precedent of setting up Bad Banks given the situation in several countries in EU, the field is wide open for similar practice and monetary concept in Africa and the region. Where by bad financial managers, economist, and central banks Boards, officials can let the monetary, financial state of thing of a given Nation go to the woods or desert and then revert to such policies and instruments. Rather the calculated process which can be used to arrive at such situation. Those who will make a very great deal of money at the expense of the tax payers and the poor man on the street.

We have stated that the SIROP exile/refugee etc return program had been foreseen at around $500 - $800 millions and the need to find money to continue the program. We had been well ahead of so to say modern thinking in providing financial solution to where the money, funds will come fro and originate. Those from the White House, USA Judiciary who branded and labelled us as Terrorist. When in reality the real financial and monetary Terrorist exist in their thousands across the big banks , the world leading financial institutions, their officials and their regulative bodies. Like wise in EU. To all the former executive of SNM/MPR what we had recommended to the Party and Executive to raise money for future Seychelles Government and normal Service via Seychelles Finacial Offshore. Those who judge we were wrong and such tools or mechanism could not be applied and the very abnormal such tools, financial products which have been set in place meanwhile.

We have not given overly great in depth details or contents quality to this thread. However we request that our members point our thread to the Central Bank Chief Executive. There is the need like the debate to get our national integrity back in term of the Arabs, those selling the Seychelles Central Bank dumb ideas from the IMF and African development Bank. Other wise they will find they are facing a worse Lehman Brothers scenario.

Sirop14

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Re: The Bad Bank debacles

Post  Sirop14 on Tue Mar 30, 2010 6:42 pm

National Assets Management Agency to buy Ireland's toxic loans at half price

The Finance Minister, Brian Lenihan, said the Irish Government would pump an extra 8.3 billion euros into the Anglo Irish Bank

Ireland’s so-called ‘bad bank’ will buy the first tranche of more than 1,200 property loans from the country’s financial institutions at an average discount of 47 per cent.

The National Assets Management Agency said that the loans, with a nominal value of €16 billion, had been acquired for €8.5 billion. The agency said it would buy a total of €81 billion of toxic assets from the nation’s crisis-hit banks.

The agency was created last year with forecasts that it would buy €77 billion in loans — equivalent to about a third of Ireland’s gross domestic product — at an average discount of 30 per cent. It added, though, that it would demand a discount of up to 58 per cent for some of the loans.

Frank Daly, chairman of the agency, said that its focus was “to bring proper and disciplined management” to the loans and borrowers with the intention of achieving the best possible return and to protect the interests of the taxpayer.

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“We will assess each borrower’s viability rigorously over the coming months as part of the business plan review process, which will be a new start for all the parties involved," he said.

The heaviest discount of 58 per cent is on the transfer of loans from the Irish Nationwide Building Society.

The first loans bought from Allied Irish Bank, the biggest bank in Ireland, will be at a discount of 43 per cent while the discount on loans from the second-biggest bank, Bank of Ireland, will be 35 per cent.

The first loans from the nationalised Anglo Irish Bank are being bought at a discount of 50 per cent.

The agency said that it expected to complete the transfer of loans from all five affected institutions — Bank of Ireland, EBS Building Society, Irish Nationwide Building Society, Allied Irish Banks and Anglo Irish Bank — by the end of the year and no later than the end of February 2011, the deadline set by the European Commission.

Ireland's Financial Regulator said that banks must attain a level of 8 per cent of core tier 1 capital by the end of the year to ensure that they withstood future losses.

Unveiling a recapitalisation plan for the banks the Finance Minister, Brian Lenihan, said that the Irish Government would pump an extra €8.3 billion into the nationalised Anglo Irish Bank.

He told parliament that the “unavoidable reality” was that the bank needed “substantial further capitalisation” from the taxpayer.
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Re: The Bad Bank debacles

Post  Sirop14 on Tue Mar 30, 2010 6:45 pm

Ireland to reveal "bad bank" terms

DUBLIN (Reuters) - Ireland's banks will be told later on Tuesday what additional state aid they are to receive, ending months of uncertainty over how much of the sector the government will end up owning.

Fully nationalised Anglo Irish Bank is seen needing the most new capital, up to 9 billion euros (8 billion pounds), under Ireland's National Asset Management Agency scheme to buy property loans with a total nominal value of 80 billion euros at a discount.

Shares in Allied Irish Banks (ALBK.I) extended losses on Tuesday on speculation about the size of the discounts to be set on the first tranche of loans to be taken over and the extent of recapitalisation needed as a result.

Newspapers said Allied Irish Banks could require 6 to 7 billion euros of new capital, leading the government to increase its ownership to 70 percent from a current holding of preference shares entitling it to a 25 percent stake.

Its share price was down 12 percent by 1300 GMT, adding to a 20 percent fall on Monday.

Media reports said Bank of Ireland (BKIR.I) is likely to have a capital shortfall of 2.5 to 3 billion euros. The state currently holds a 16 percent stake in the bank and has a further potential 25 percent stake held in preference shares.

However, shares in Bank of Ireland were trading up 1.2 percent at 1.26 euros by 2:12 p.m.

Finance Minister Brian Lenihan has refused to be drawn on the extent of the discounts NAMA is to impose and the banking capital requirements that will follow, before a series of official announcements are made later in the day.
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Re: The Bad Bank debacles

Post  Sirop14 on Tue Mar 30, 2010 6:46 pm

Ireland’s ‘Worst Fears Surpassed’ as Banks Need $42.7 Billion
March 30, 2010, 1:28 PM EDT

March 30 (Bloomberg) -- Ireland’s banks may need at least 31.8 billion euros ($42.7 billion) in new capital after a real- estate slump left them crippled by mounting bad loans.

The fundraising requirement was announced after the National Asset Management Agency, the country’s so-called bad bank, said it will apply an average discount of 47 percent on the first block of loans it is taking over from lenders and the country’s financial regulator set new capital targets. The discount compares with the government’s initial 30 percent estimate.

“Our worst fears have been surpassed,” Finance Minister Brian Lenihan said in the parliament in Dublin today. “The detailed information that has emerged from the banks in the course of the process is truly shocking.”

Allied Irish Banks Plc needs to raise 7.4 billion euros, while Bank of Ireland Plc will need 2.66 billion euros. Anglo Irish Bank Corp., nationalized last year, may need as much 18.3 billion euros, Lenihan said.

Lenders must have a core tier 1 capital ratio of 8 percent and an equity core tier 1 capital of 7 percent by the end of 2010, according to the regulator. They must “set out plans to ensure that capital is in place by the end of 2010,” it said.

The regulator has given Ireland’s banks 30 days to submit recapitalization plans, which can involve asset sales and the issue of shares.

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