WITH six State-backed banks preparing to join the National Asset Management Agency (NAMA), the fear had always been that a major foreign-owned lender would pull support from developers first -- creating a domino effect across the troubled banking and property sectors.

However, most, including Ulster Bank, KBC and Bank of Scotland (Ireland), had indicated that they would co-operate closely with NAMA in working out risky property loans.

One exception was ACC Bank, the former State-owned agricultural lender acquired by Dutch financial services giant Rabobank 2002. The Utrecht-based bank had signalled in recent months that it was not prepared to wait around as other banks held the hands of developers all the way to NAMA.

ACC is tiny with only €6.5bn out on loan to customers. But its aggressive stance has sent shockwaves through the banking system.

"We've always stated that NAMA is about protecting the economy, not developers," a spokesman for the Department of Finance said. However, he declined to comment on individual cases.

Best news yet for stifling NAMA?

This type of thing, Green/FG/Labour opposition and a "concerned citizen" bringing a constitutional challenge would ensure NAMA never sees the light of day.

As regards the rest, if the Greens were to pull out of Government post Lisbon but pre-budget then perhaps we have a chance.

Nearly a third of ACC loans past due or impaired
Sunday, July 19, 2009 By David Clerkin, Markets Correspondent
http://www.sbpost.ie/post/pages/p/story ... qqqx=1.asp

Almost a third of ACC Bank’s outstanding loans are overdue or impaired, according to figures provided by the bank.

ACC, the former state owned institution that is now part of the Dutch Rabobank group, said past due or impaired loans had risen from 14 per cent of its €6 billion loan book at the end of 2007 to 30 per cent by the end of 2008.
The bank defines impaired loans as those from which the future expected cashflow will be worth less than the current amount outstanding.
The percentage of loans that are overdue or impaired would rise from 30 per cent to 34 per cent if the bank had not renegotiated loans of €252 million, which it said would have been past due at the end of December if their terms had not been changed to reflect a change in the borrower’s circumstances.
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I wonder will the NAMA bill be referred to the Supreme Court by the President to insulate it against subsequent challenge? If not, who would have standing to challenge the Act apart from the banks and possibly developers?

Would it be fair to say that the reason ACC have 33% impairments compared to the single figure impairments quoted by other banks has nothing to do with the quality of their loan book and everything to do with their honesty in reporting their losses? In which case, would it be fair to assume that the other banks which engaged in commercial and development property lending have at least 30% impairments as well?

ACC Bank to review operations due to current economic climate
Wednesday, April 29, 2009
http://www.irishtimes.com/newspaper/fin ... 99716.html

ACC Bank, which was bought from the Government by Rabobank in 2002, closed seven branches in Leinster and Munster earlier this year as it said it would focus on business customers.
It said last autumn that it would invest in new branches in Cork, Kilkenny and Limerick and would refurbish other offices.
The bank, which had 32 branches last year, said it would still open current and deposit accounts for business customers who do not need cash services.

They would probably have been a bit more aggressive to gain market share at a late stage of the boom (T-4 years)

a bit drunk as on holiday......but from what I heard today on the radio.......... examinership will mean that carroll related business's since they have gone in to examinership will buy 100 (over 3 months)days of protection from creditors which I am thinking will mean that will give NAMA time to "kick in" and be in place by late september early october.....take carrolls debts and transfer them to the tax payer from the banks like all the rest the Banks property debts