Irish People Skinned Again at IGB.

Community Gain For Billionaire Speculators Starts at Irish Glass Bottle Site.

From our Monkey, one of the whistleblowers inside DDDA Developers Autocracy.   Securely Skyping from NAMA HQ, rented from a treasured Property Speculator. 

• Skinning 1940-70s:  Philistines bury Sandymount Strand bordering Ringsend-Irishtown-Sandymount villages under City Refuse Dump.
• Skinning 1940s: Privately owned Irish Glass Bottle factory leased on public territory.
• Skinning 2007: Glass Bottle Recycling Factory closed.  400 Fired.

• Skinning 2007: IGB Site Lease: Private Investor gains €100s-millions from lease 'loophole' allegedly left open by a minister.
• Skinning 2007-09: DDDA & Others dump €500 million into toxic IGB city dump site.
• Skinning 2008-10: Poolbeg Planning Scam - DDDA bid to literally      dictate €5 Billion of no-appeal Poolbeg Planning .                               

• Skinning 2007-2009: DCC's undue influence in a Poolbeg public planning process (Judge McKechnie).
• Skinning 2010:  DDDA/Poolbeg schemes add €500 Million to €2 Billion to national debt.
• Skinning 2010: NAMA launched at IGB site.   

Unlike our respected Finance Ministers, Mr Cowen and Mr Lenihan - both trained lawyers as is respected Willie - our Monkey does not have legal training.  So his report could be true, being based on gut-feel accounting fundamentals.  Long ago our Monkey correctly reported that taxpayers would be skinned at IGB by NAMA.  So now the deal has been done, on the back of a conveniently rotting banana skin.  Because of toxic pollution the IGB site has a negative value of say minus €50 million.  This is as good a reason as any for NAMA to acquire the toxic IGB site for its clients with taxpayers cash. 

When DDDA moves offices from the respectable Southside back to the Northside, where they came from, no documents will be lost or misfiled.  Nevertheless the good governance of SPV accounting could disguise the €500 million already dumped into the IGB hole in the ground as 87% of any number you like. Grab a banana from the DDDA tree.  Weigh it.  Apply 87%. 

SOLD TO TAXPAYER FOOLS

NAMA's Real Clients are Banks & Developers.

NAMA may state its clients are the taxpayers and the residents of Ireland.  However in reality NAMAs clients seem to be the property speculators and the fraudulent Inselaffe galway tent bankers -all funded by the taxpayers of Ireland.  In March 2010 NAMA seems to have said that it is acquiring bad property loans from its "clients" - some truth released in a faux pas.  With Lear Jets on permanent standby some NAMA clients recently moved to reside outside the legal jurisdiction of Ireland to Paris, London, Lausanne, Cape Cod, China.   Note that 'Client' is language as used by the priesthood of lawyers. 

NAMAs deal may well be "Community Gain" for billionaire property speculators.  Nevertheless taxpayers will break even after one or two hundred years, using nominal-Euro accounting tricks: Special Purpose Vehicle scams pioneered by Enron.

People are already googling for jobs in the waste-to-toxins incinerator, a neighbour 400 metres from the toxic IGB flats.  Councillors and TDs will buy votes in exchange for flats built in the toxic site and jobs in the incinerator.  By then the Galway Tent will have moved back to Tammany Hall.   Job well done.

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Disclosure:
Our Monkey is not a formally accepted legal professional, unlike former Finance Ministers Mr Cowen and current Finance Minister Mr Lenihan.  So the monkey's reporting could be totally true, massaged or not.  The monkey's understanding of finance fundamentals is strong - he knows his banana-coupons from his orange-coupons.  His financial-gut tell's him you don't directly compare Sterling mortgage rates to Euro rates, even though the Finance Minister does.

Our Monkey was amazed that property-supplement-funded Irish Times never ran a robust investigation into IGB before the scamming burst.

Our Monkey congratulates surprise 06:00 hours police raids, with government broadcaster crews in tow, on client houses for Commodore 64s.  All this only two years after €8 billion was parked from PTSB into Anglo designed to massage the books and the share price, without informing investors in New York ADRs, allegedly. 

Totally Useless Things Concerning Inselaffe Culture:  Our Monkey notes that Quinn Group has a glass factory competitor to IGB outside the jurisdiction to which recycled glass could be exported, without air-miles.  The Monkey claims Quinn related investors tried to buy shares in Anglo and has a €1 Billion accident.  The Monkey further claims that the replacement Financial Regulator put Quinn Insurance into administration close to April Fools Day.  Now Anglo Irish Bank is looking for circa €3 Billion from Quinn.  Otherwise the taxpayers will be buying an insurance company and a toxic hole in the ground.  The Monkey believes there is no connection between former AIB Chairman/CEO Quinn who sold the AIB Sports Grounds (public good) on Sandymount Strand to a private speculator, Zoe/Fabrizia/Carroll.  One of NAMA's first clients is the ZOE-Carroll Group, suffering a €2 Billion meltdown.  ZOE and megabankrupt Bank-of-Scotland-Ireland shared the same building in Parnell Street, Dublin.  AIB's Quinn is brother to former Finance Minister Quinn who honourably established DDDAs socially justified and honourable predecessor.  Liberties occurred years later on the strands liberties.

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Glass bottle site given 87% Nama 'haircut'

SIMON CARSWELL, Finance Correspondent

Sat, Apr 03, 2010

THE NATIONAL Asset Management Agency (Nama) has applied a “haircut” of 87 per cent to the loan provided by Anglo Irish Bank to buy the controversial Irish Glass Bottle site in Ringsend, Dublin in a €412 million transaction in 2006.

The loan will be among the first tranche of €10 billion in assets moving to Nama from the State-owned bank next weekend. Anglo and Nama had no comment to make the haircut or the transfer.

The discount reflects the collapse in the value of the property, which was written down to €50 million by the Dublin Docklands Development Authority (DDDA) – a drop of 88 per cent in value.

Anglo and Allied Irish Banks provided a €288 million loan to fund the purchase of the site, which involved developer Bernard McNamara, financier Derek Quinlan, the DDDA and private investors of Davy stockbrokers.

One of the three draft internal reports into the DDDA, which were recently disclosed, reduced the value of the authority’s 26 per cent share in the site to zero.

The discount on Anglo’s loan contributed to Nama applying a 50 per cent overall discount on its first loans being moved into Nama.

The bank reported a loss of €12.7 billion for the 15 months to the end of December this week after writing off €15.1 billion in bad loans, including €10.1 billion on loans moving into Nama.

The Government has injected €12.3 billion into Anglo to replenish its reserves after the losses wiped out its capital base.

The bank has said that it may need a further €10 billion and possibly more to cover a higher-than-expected average haircut on the loans moving into Nama as well as losses on non-Nama loans and to meet the new higher capital rules.

Nama said yesterday it had completed the transfer of the first loans from Bank of Ireland, buying assets with a face value of €1.93 billion for €1.26 billion, representing a discount of 35 per cent.

“The agency expects to complete the transfer of the remaining loans from all five institutions by the end of the year and no later than end February 2011, the deadline set by the EU Commission,” Nama said in a statement.

The agency has now bought loans with a face value of €2.74 billion from three financial institutions – €1.93 billion from Bank of Ireland, €670 million from Irish Nationwide building society and €140 million from EBS building society. The agency has applied a 37 per cent discount against the EBS loans and a 58 per cent haircut to Irish Nationwide’s.

Nama will acquire the first loans from AIB over this weekend, buying loans with a face value of €3.3 billion for €1.9 billion, representing a haircut of 43 per cent. Anglo will transfer some €10 billion in loans for €5 billion.

Some €16 billion in loans are being transferred to Nama in the first tranche for €8.5 billion, representing an average haircut of 47 per cent across the institutions.

The State effectively took control of Irish Nationwide this week with the injection of €100 million in return for special investment shares in the building society.

EBS is expected to find out over the coming week about when the institution will receive its special investment shares. However, the building society last week received a waiver, allowing EBS to fall below the threshold which dictates the minimum amount of capital that a lender must hold in reserve.

EBS has the derogation from the regulator until May 31st, allowing it to hold less than the minimum core tier 1 capital ratio – a measure of loss-absorbing reserves at a lender – of 4 per cent.

© 2010 The Irish Times