I knew I had written about this stuff before â€“ it was 18 months ago, (here, in full, post #13.. http://www.archiseek.com/content/showthread.php?t=7672&highlight=court
Commentators are slow to remark on the manner in which most builders & developers have structured their businesses. Most went for â€œunlimitedâ€ status during the boom years to avoid filing their financials and showing their vast profits (useful today for hiding their vast losses), but this is only a decoy. Inevitably the ultimate holding company is a limited entity, registered offshore which protects both their privacy and private assets. Intercompany debt, asset values and thus net worth even when figures are available are considerably disguised.
Intercompany loans at Pierse amount to about 70 million (Sunday Times, 7/11/2010)
KerryBog2 wrote:...........and show the magnitude of the problem when it is realised that the payment process for the costs element of those sales has ground to a halt. From the top of the pyramid downward, suppliers are not being paid. The message is going down the line that â€œwe are awaiting payment on a big job that has been completed/signed-off on/whatever.â€ Prevaricate, delay, lie. Create longer snag lists, initiate proceedings. Whatever. Everyone is putting off the evil day of realising that the money is not there now and will not be there in the future. Round Two of failures will happen when NAMA starts.
We are well into Round Two. The guys I feel sorry for are those who are slow to accept reality and are pumping money into their businesses to try to keep them afloat until the â€˜good timesâ€™ arrive... it wonâ€™t happen, cut your losses, save your pension fund.
KerryBog2 wrote:............During the boom, builders/developers operated on such huge margins that many never had to worry about accurate pricing. The odd bad debt did not matter, it could be absorbed. Credit control disappeared and credit terms were given out like snuff at a wake..
Bad credit control is now home to roost. (â€˜Pierse, Dunne, McNamara â€“ ah, shur, theâ€™re grand, supply them.â€™)
KerryBog2 wrote: NAMA & the future
The big elephant in the room is corporate enforcement, surrounding which there is deadly silence.
All senior bankers, from ordinary manager level up, are legally required to act with probity. (For bankers â€“ that means integrity and uprightness; honesty.) IFSRA rules are very clear about this. Other professionals, like accountants, have similar requirements imposed by their professional bodies. Anyone heard anything from the void of accountancy bodies?
Mmmmmm... anyone yet heard of ANY sanctions from (so-called) professional bodies? Or any senior banker being disbarred from holding a senior position? Or any REAL changes to bank boards?
KerryBog2 wrote:Senior bank managers and anyone who devised lending criteria or sat on a credit committee during the 2004-2008 period have a question mark over their acumen. Directors are in a worse position; if they were aware they should be fired immediately; if they were unaware, they should be fired for incompetence. The banking sector must delete its top level or it cannot ever extricate itself from the present mire.
Sadly most remain on fat salaries; the few that were fired got massive pay-offs, i.e. got off scot free.
KerryBog2 wrote: Huge sums of money were moved around to dress up the dodgy balance sheets of banks. People spoke, phoned each other. These types of conversation, just like Dealing Room transactions, were taped. The Regulator must have known; even now, where are the tapes? Did anyone ask for them? Why the silence? Where are the journalists? Why no real questions?
According to the news today, hours of recordings have been listened to and hundreds of pages of transcripts made. Thank you Mr. ODCE. Now please do something with them. Same goes for the guys who â€˜forgotâ€™ their passwords. Clue â€“ anyone from a boarding school education always uses their old laundry number.
KerryBog2 wrote:We saw what the accountants did to a defunct stockbroking firm in Cork a few years ago - they raped what was left, to the extent that the (broke) customers actually despised the accountants more than the stockbroker who ripped them off. Wait for the bun-fest that will be NAMA. The lawyers and accountants are licking their lips already.
According to a report by the Comptroller & Auditor-General quoted by the Sindo , http://www.independent.ie/business/irish/nama-adviser-rakes-in-fees-of-euro58m-2410752.html
NAMA is paying legal fees of up to â‚¬485 per hour while even trainee solicitors' fees can amount to â‚¬100 per hour ...
KPMG was paid â‚¬5.8m by Nama between November 2009 and June this year for valuing loans. Nama's legal advisers, Arthur Cox -- which billed the agency for â‚¬911,250 last year ....The CAG's report states that from September 2009 onwards, Arthur Cox is billing Nama for â‚¬40,000 per month.
PWC have FOUR staff contracted to NAMA at an original cost of â‚¬60,000 per week and now â‚¬40,000 per week.
Ah, shur, weâ€™re been oppressed before and got out of it, shur weâ€™re a great country, itâ€™ll be grand.