Friday 24 November 2017

Don't expect credit to flow from a botched back-of-an-envelope plan

Behind schedule and lacking credibility, Nama's chances of success are low, writes Daniel McConnell

Daniel McConnell

Daniel McConnell

IT seems like an age since the night of September 29, 2008, when the then heads of the two big Irish banks -- Eugene Sheehy of AIB and Brian Goggin of Bank of Ireland -- walked into Government Buildings and pleaded for help. And, in particular, to save the deeply wounded and ailing Anglo Irish Bank.

The toxic state of Anglo, which had to be nationalised in January 2009 after the damage done by the reckless actions of its chairman Sean FitzPatrick and other top management people, has brought this country to the verge of ruin and bankruptcy.

The cost of fixing the mistakes of greedy banks will be crystallised in the next few weeks as the first transfer of assets to Nama, the State's bad bank, takes place. When that transfer happens, loans from the Anglo 10 (Liam Carroll, Bernard McNamara, Sean Mulryan, Derek Quinlan, Paddy McKillen, Treasury Holdings, Michael O'Flynn, Joe O'Reilly, Gerry Gannon and Gerry Barrett), with a book value of €16bn, will be taken over by Nama.

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