canicemcavoy
Registered User
- Messages
- 601
Is it a good thing that accBank are breaking the cosy Irish banker/developer cartel and actually getting these guys to pay up the money they own?
canice , I don't suppose the thought ever occurred to you that the Banks set the rules at the beginning, shoved the money at developers and on realising their own mistake, have now chosen to make the customers, and developers suffer.
They are only seeking to get repaid monies which is has been lent out.
I'm not disputing your point. However the Bankers prostituted the money to their customers. And the more lean the Bank the harder they tried to gain market share. In the case of the ACC, always known as the Farmers Bank - well they are getting their just deserts.
The same Bank launched a Property Syndicate early 2008 for European Continental Properties which they simply HAD to buy. They then railroaded large clients in to taking shares of the Syndicate. The values are now well down but no doubt if asked the Bank will blame others.
What exactly do you mean by "railroaded", for example? How did they force people to invest? By 2008, the peak had well passed.
Your attitude suggests that foreign banks should never loan money in this country to businesses again, since, if they do, they are criticised for wanting it back.
Like all Banks that were offering 'products', they invited them to dinners and Golf Outings. Showed them the product, loaned them the money to Invest, and that was it.
I saw both sides of the equation
because they chose not to be part of the Government's NAMA package and the Loan to Values went askew they panicked, with the result of pure Panic in the Commercial Property market.
It is interesting to look back on the timing of AIB's sale of their Ballsbridge HQ, around the peak of the market.
http://www.independent.ie/national-news/public-to-blame-for-economic-collapse-1831828.htmlAN outgoing AIB boss yesterday insisted there was no clear warning of the devastating downturn -- and also claimed the public was partially to blame for the economic collapse.
Could be useful for setting the benchmark prices for NAMA. If they are 75% down, then that's what we should pay.
My opinion, let the developers collapse, lets have the fire sale of property and get this thing over with asap so we can move on. People forget that while the fire sale is bad for the developers, its great for whoever purchases the assets - could help establish a new generation of entrepreneurs who got their break by being able to purchase cheap premises. Remember Ryanair post 9-11 - became the biggest airline in Europe by buying during the airline industry fire sale.
Could be useful for setting the benchmark prices for NAMA. If they are 75% down, then that's what we should pay.
Really? Try selling it at that 'value'.NAMA will also allow homeowners to retain soem value in their own home.
Consider a house sold by a developer in 2008 who's gone bang in 2009.
If the unsold house next door to the house sold in 2008 is 'fire-sold', then its price/value will have plummeted.
A steady manageable decline of asset-values is what is required, which is what NAMA is tryign to achieve.
A steady manageable decline of asset-values is what is required,
Defeats the purpose of the whole exercise. If they were to pay 25% for the loans, the banks would be left insolvant and require more capital from the taxpayer anyway. There is no way around the fact that NAMA are going to pay over the odds for some loans and hope for the best.