# Developer takes on NAMA



## Shawady (6 Oct 2010)

What do others think of this case with Paddy McKillen?
He claims his loans are performing.
Either way, if he wins the case it will have implications for NAMA.

http://www.rte.ie/news/2010/1006/nama.html


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## Towger (6 Oct 2010)

Now that the goverment owns all the banks appart from BOI, I don't see it making much difference.


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## csirl (6 Oct 2010)

Why is this case any different to any financial institution selling on a loan to another institution? Happens all the time. Nama purchased the loan from the bank.


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## Smart_Saver (6 Oct 2010)

Is the basis for his case because he makes the link of being associated with Nama seeming to be bad for business? I.e. becasue he is linked with them his credit rating will be adversly affected as will perhaps his existing arrangements (e.g. overdrafts etc) with other banks/institutions.


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## JoeB (7 Oct 2010)

Well, this case highlights that the 'haircut' taken by the banks on the transferred loan book is unreliable, if one assumes that the same discount was applied to all loans..

What I mean is that this guys fully performing loans should have been transferred at full value, i.e 0% haircut. So if a discount of 40% say was applied overall, this means that some loans were sold at a discount of greater than 40%, as some loans were transferred at full value, i.e 100%.


In summary, some loans were transferred at 100% value, and others were transferred at 50% discount say.. giving an average dicsount of 40% say, which is the figure reported in the media. But this 40% figure hides the fact that some loans were transferred at a higher discount,.. due to including fully performing loans in the transfer.



I'd suggest that many people were unaware that fully performing loans were being transferred to NAMA. Did the banks get paid or compensated for the loss of business that they'd suffer from having fully performing loans taken away from them?


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## csirl (7 Oct 2010)

> I'd suggest that many people were unaware that fully performing loans were being transferred to NAMA. Did the banks get paid or compensated for the loss of business that they'd suffer from having fully performing loans taken away from them?


 
Yes, NAMA didnt just take the loans, it purchased them at market rates (probably more than market rates for the underperforming ones).


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