Spark for chaotic fire sale goes all the way to ECB
Frankfurt's refusal to act as lender of last resort spurred Nama's decision to sell into a weak market, says Colm McCarthy
Nama was established in late 2009 to buy property-related loans from Ireland's bust banks at a discount. The intention was that the assets be warehoused and fed gently into the market, avoiding a chaotic fire sale.
Nama was given a 10-year time horizon to dispose of its monster portfolio and hired hundreds of staff and professional advisers for the task.
It paid the banks with government-guaranteed paper which they could use to borrow real money from the Irish Central Bank, with permission from the European Central Bank in Frankfurt.