The Vultures Are Waiting To Pick Your Bones

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Previously: Ed Honohan on Broadsheet

19 thoughts on “The Vultures Are Waiting To Pick Your Bones

  1. eoin

    The time it will take to build a consensus across Europe to deal with vultures, it will take forever. Ireland can quickly change national laws to freeze out the vultures. There’s a Bill going through the Oireachtas which will compel traditional lenders to get the express consent of mortgage borrowers before the vultures can buy their loans. That’s a start, even if it’s too late for many.

    However, if Ireland wants to really put manners on vultures, we need legislation similar to that which exists in Belgium, which restricts the amount a vulture can recover in court proceedings on a loan [in Belgium, it’s sovereign debt only, but extending it to family home mortgages isn’t such a great leap] they’ve acquired, to the amount they paid for the loan, so if a vulture buys your €300,000 mortgage and pays just €100,000, then all they can recover in court is the €100,000. That will encourage vultures to act responsibly with borrowers so that they can make a profit on their purchase without deploying their army of solicitors, it will deter them from acting as they do at the moment, unconcerned about their reputations in society because they’re quick-in/quick-out and off to the next nation’s financial corpse.

      1. Ding Dong the Frill is Dead

        Yes

        And in addition to this. Their status, like actual entities trading for profit, and their true commercial reality needs to be established firmly.

        This trust and charitable status carry-on needs to be called out for the bogus tax avoidance bollockology it really is.

        If they insist on conducting their affairs with such aggressive financial aims, and by utilising the Irish Justiciary to assist them achieve these goals, then they need to be recognised and treated accordingly.

        V

        1. Cian

          +1 these funds need to be regulated as companies and pay their fair share in taxes. Not set up as charities.

  2. Rob_G

    “… prima facie case” – good man Ed, throw in a bit of legal lingo there to seem authoritative.

    1. Ron

      He more of an authority on the subject than you will ever be, thankfully. Sit down clown, April Fools isn’t for a couple more weeks.

      1. Rob_G

        Funny you say that, as I have exactly the same level of legal expertise as Ed Honahan does; perhaps we should ask the court’s ushers, cleaners, or the prison officers to go to Brussels to give their opinion on what’s lawful and what isn’t.

  3. johnny

    Funds buy portfolios/loan books, they will be incredibly reluctant to pro-rate or apply X to each loan.
    As that will be subjective and somewhat arbitrary,as in oh I heard Mary up the road got Y,why am i paying back X-its just not gonna happen.
    Regarding Funds I’m trying find out which fund owns the FAI loans that DOB got credit for renegotiating-a rather odd role for him….

    “Delaney didn’t rule out O’Brien assisting the association in a different form in the future. In 2016, the businessman’s connections with Bank of Ireland facilitated the refinancing of the FAI’s mortgage from an American hedge fund, triggering a lower interest rate.”

    https://www.irishexaminer.com/breakingnews/sport/soccer/fais-10m-link-to-denis-obrien-ends-831871.html

    Going try find out bit more or do a ‘deep dive’ on DOB and the FAI-so in advance FU to the haters and losers regarding ‘obsession’-the irish media reporting on this is rubbish.

    1. eoin

      Force vultures to attribute a value to each loan. Easily done. Of course, the whole point of this new law would be to deter vultures so traditional banks would only sell to sub-prime lenders who were in it for the long term,

      With respect to the FAI, from their 2016 accounts,

      “Following the successful refinance of bank loans with Bank of Ireland during 2016, the Association will benefit significantly from a lower interest rate applied going forward. Annual interest savings compared to the loan agreement with Corporate Capital Trust will be approximately €2.7m.”

      What was the FAI doing with a US private equity fund (US-based Corporate Capital Trust -KKR / CNL Fund Advisors business) in the first place? Who knows, but as of 2016, Bank of Ireland appears to be the sole bank providing around €35m of loans.

      1. johnny

        Thanks Eoin-the reporting on this is all over the pitch, goal posts moving constantly:)
        It appears that KKR currently owns the notes but again I may be offside-badda bing,badda boom-ok ok..

        “Stewart Doyle of QED Equity, part of Dermot Desmond’s financial empire, also got involved, and relationships with private equity houses and other financiers were tapped. US private equity group KKR was brought to the table and the FAI was able to wrangle a €12.5m writedown on its €50m-plus stadium debt. Even better was the lowering of its interest costs and a less scary capital repayment schedule. The likelihood is that the FAI will be able to refinance the debt again in the next couple of years”
        https://www.independent.ie/business/irish/nick-webb-kelleher-helps-out-with-the-fai-debt-deal-30241508.html

        Anyway,lets see what i can dig up/find out-be good know who owns the FAI notes-KKR has done a few JV’s or partnerships with the NTMA.

        PS-Funds do value each loan-you get what’s called a ‘loan tape’ or the tape,basically a spreadsheet with all the loan data-but there is so much subjective/biased analysis that they will likely not bid,instead revealing their underwriting or analysis-oh you used a 20% discount because its a single parent, you used a 30% discount because they are non nationals etc etc…….
        Which is basically the whole point in Belgium:)

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