Wednesday, August 12, 2009

Liam Carroll and NAMA

The Supreme court yesterday rejected the attempts of a group of companies controlled by Liam Carroll to get court protection from their creditors, and now there is a risk that a liquidation will follow.

Nobody seems to know what will happen next and how the different players will act ( the government, the banks , ACC Bank).

However one thing is clear: the propaganda has already started.

A spokesperson for the Minister of Finance said that the decision will have no effect on NAMA, without giving any more explanations.

RTE in their reporting yesterday evening are already speculating on a number of things.
One is the possibility that the main Carroll creditors ( essentially AIB and BOI) will pay off ACC and then get on with the plan to stuff NAMA with another 2.8 billion of bad loans( this is the total amount that the Carroll group has borrowed).

It is quite amazing to imagine that AIB which is owed over 500 million by Carroll will pay off another bank first , just with the intention of stuffing NAMA then. Indeed if this were to happen it would be a clear proof that the banks will roll over these losses to NAMA.

Even more extraordinary was the idea that the people responsible for the liquidation of the Carroll group "when appointed [..]might decide that it might be better off to wait for NAMA, that they might get a better deal"!!
This is a clear admission that NAMA will pay OVER THE ODDS for worthless assets!

And then the inevitable scaremongering followed, that if Liam Carroll's property portfolio is liquidated there will be sever repercussions for the property market, again implying that NAMA is the only way to avoid the pain.

This is an utterly false reporting , NAMA will just take the losses from the banks and give them to all of us, but the losses are real and no amount of accounting trickery can avoid reality.

This type of reporting and scaremongering is what keeps people from reacting to NAMA, in the hope that someone else will pay for the mess. The reality is that we will all pay for the mess , unless if we demand that the people responsible pay and these are the banks , the bank stakeholders and the developers.

1 comment:

  1. NAMA is a big mistake. Bad debts are NOT assets. They are IOUs from people who will not, or cannot pay. As such, they are clearly worthless. Only idiots or those with a hidden agenda would pay for worthless things. This government has a long history of misusing our money. Will we let them implement NAMA, bankrupt Ireland, and make prize fools of us all?