Results 8,561-8,580 of 27,945 for speaker:Michael McGrath

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: From the developer buying land speculatively, which was not even zoned for development-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: -----and where the zoning would have to come on stream, hopefully from their perspective,-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: -----planning permission secured, construction completed, units sold ... that for all of that period of time no repayments, whatsoever might be made on those loans.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: -----and the interest just rolling up.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: And the final figure, was it around €9 billion, or interest rolled up on the loans that you acquired?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Yes.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: And so, of the €74 billion of the par value of loans that you acquired-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: -----the €9 billion was part of that?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: So, €9 billion of the €74 billion worth of loans that you acquired was just interest that had been rolling up?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay. And the €9 billion-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: And did the €9 billion largely relate to that €40 billion of land and development loans?

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: What interest rate typically would have applied to loans like that and what would determine-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Sure.

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Yes, okay. Can I move on to the issue of the enforceability of security because issues arose around that and were identified during the legal review and it made it necessary to impose legal discounts of €477 million, which is broken down on table 3, Vol. 2, page 5 of the book that we have. Can you give us an indication of the type of issues that would have arisen which necessitated...

Committee of Inquiry into the Banking Crisis: Nexus Phase (22 Apr 2015)

Michael McGrath: Okay. And then subsequently, when you did acquire the loans, further issues emerged when you went into more detail assessing each loan and a total of €334 million of overpayments were identified that you had to get back from the banks.