Results 17,321-17,340 of 27,945 for speaker:Michael McGrath
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: A broadly similar process among all the banks that you dealt with, okay. In the pre-crisis period did you or management colleagues believe at any point that a property bubble was in the making, or did you generally rely on the soft landing theory?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: And when did you believe that an adjustment of that order was inevitable or became likely? Like in the second half of '06 when prices probably peaked and begun to turn, did you believe then that there was going to be a contraction in prices?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Okay. Can I ask you about the establishment of NAMA? And, as you know, it was announced first of all by the then Minister, Brian Lenihan, in April 2009, but the legislation was not signed into law until November of that year, so there was a delay because of the legislative process that had to be gone through. So can I ask in the interim phase, can you describe the impact on the...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Okay.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Can you just clarify the group structure for me? So Chartered Land is 100% owned by yourself, and Castlethorn Construction you share with two co-investors. And then is there a parent company? And are they all sitting in the one group? Can you just explain the group structure, please?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: So no legal relationship between the two entities whatsoever? So there isn't a group structure around either entity?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Stand-alone company?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Okay, within the Castlethorn Group?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: And would you have formed a new corporate entity for each development, for example?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Okay. And ... and just to clarify the ... the total value of par debt attributable to your ownership interests, as you put it, was €2 billion at the end of September 2008. So is that 100% of the Chartered Land debt and your share of the Castlethorn debt?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Is that what it is?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Okay, and does it include personal borrowings as well then?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: It does. So the par value of what went across to NAMA which was attributable to you-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Okay, if you included the ... the ... the share of your co-investors in Castlethorn, it would have been somewhat higher then?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Okay. And when you say that €600 million has been paid back to NAMA, you're not talking about cash flow generated there which NAMA has kept from a rent roll, for example, you're talking about actual paying back of debt. Just to clarify.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Okay, so about €400 million is ... is reducing the actual principal balance of the debt-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: -----and about 250 is cash flow generated-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: -----which would then be retained by NAMA by not offset against the loan balance. Okay and the €400 million is going against the €2 billion-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: -----not the greater amount which includes your co-investors. Just to clarify that. You dealt with a number of different banks. Chartered Land was heavily dependent on Anglo for 65% of its borrowings. Castlethorn to a lesser extent, 25%, I think Ulster, you say, was the lead lender to Castlethorn. What differences were there, in broad terms, between the different banks and their approach...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (23 Jul 2015)
Michael McGrath: Okay. And was their loan approval process as rigorous as the other banks?