Results 11,361-11,380 of 15,555 for speaker:Eoghan Murphy
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: And there was a fee for being a part of the subcommittee to pay for the research.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: What level of subscription?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Per member of the committee.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Okay.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Thank you, Chair. Mr. Parlon, I just want to go back to a meeting that Deputy McGrath raised earlier, it was in relation to NAMA on 28 September 2009. It's page 15 in the core booklet. This is a meeting between the CIF with the Department of Finance and the NTMA. On top of page 15. You were there representing the CIF as director general at the time, but you had a number of colleagues...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: In relation to the first paragraph then, on pre-establishment issues, you queried whether the Central Bank letter issued in May was still in effect. Now this was a letter and we've been through it with NAMA already that stated: "where additional funds were lent to [borrowers] following the announcement to establish NAMA, a haircut would not be applied on these amounts provided funds were...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: -----one of the others present?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: So, members were finding it difficult to secure working capital but they did secure working capital. NAMA told us that they secured €2.3 billion in working capital in that period but if they decided that roughly half of this was not eligible under the Central Bank scheme, that the money wasn't advanced for commercial purposes - roughly half, about €1.1 billion, so what was it...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: But NAMA concluded that €1.1 billion wasn't advanced to these borrowers for commercial purposes, it wasn't eligible under the scheme and you had lobbied for this money to be released.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Given what NAMA has told us since then, that €1.1 billion was advanced and wasn't eligible, should you have lobbied for that?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Not in this instance.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Thank you, Chairman. And thank you, Mr. Davitt, you're very welcome. Looking at the pre-crisis years, how did the various codes of conduct deal with a situation whereby the valuer was being paid by a borrower, often a large developer, rather than directly by the lender? How did the code of conduct deal with that? Or did the code of conduct deal with that?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Okay, and how would the valuer protect themselves then from a potential conflict of interest, if it arose?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Would that be a likely outcome in such a situation where such pressure was coming down on a valuer?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: During the boom years then we had a small number of large developers having a disproportionate share of land and property development, so how would the valuation process mitigate against the risk of a developer, you know, using that position to have the values increased in a general way?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Yes, but even by point of view of, say, where you're in an almost cartel-like position or monopoly-type position, you can use your land banks to influence potential valuations because you're able to put the pressure on the valuers, given your size of the market.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Can that become a self-fulfilling mechanism to increase property values in general?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Can it become a self-fulfilling mechanism whereby someone pays a particular price, that then sets a new value, the valuer then comes to value a piece of land close to it or similar to it the following week, there's now a new value placed-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Self-inflating, if you like.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (13 May 2015)
Eoghan Murphy: Okay. And then ... how do we explain then a situation whereby someone might put a value or a perceived value, in terms of bidding for a property, and have a valuation done subsequently that would come in at the same amount? I'll give you an example.