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AIB not Going Rogue on senior management positions
Read more about: NAMA 
We’ll probably never know who leaked word of the plan to pay over the salary cap by shifting an internal candidate already above it into a quasi-CEO position. But the row over salaries is a sideshow compared to AIB’s interim management statement today. It’s worth a read. Among the highlights: If you’re used to thinking of a bank as an entity that takes deposits and uses the proceeds to make loans, AIB is only half a bank. Customer deposits are just 50 percent of its total funding, and loans are 150 percent of customer deposits.
The news for NAMA is worse. The statement has a nice table showing the status of the loan book that is expected to transfer to NAMA. Of the 24 billion loanbook, AIB expects that 10 billion will be impaired by 31 December. My abacus says that’s 42 percent of the loan book. The average NAMA discount is 30 percent. Now of course “impaired” doesn’t mean fully impaired so maybe there is enough recovery in the impaired loans to get a 30 percent discount on average. But even that means we’re already on the downside of NAMA’s profitability prospects. By the way, there’s a great euphemism for what NAMA means for AIB — “a major liquidity event in the Irish market”. We’re the ones pouring.
Or they’re the ones pi**ing on us…
That is a great posts pulling up the NAMA losses. It is what Paddy Matthews has been going on about for a while now and underlines that NAMA is likely to be deficient from the very start at ‘washing its own face’ amazed it hasnt been picked up by irisheconomy yet.
The really frightening thing is that after the bail out, after nama, after agreeing to a cap on salaries, and after being part of a cabal that drove our country to the point of bankruptcy, they still continue to carry on as if nothing happened.
The other frightening thing is that Lenihan, insisted on a cap of 500k for CEO’s, but allowed employee’s of a lower rank to continue to earn above that figure. ( the mind boggles)
According to the Taoiseach in the Dail this am. he does not know how many people are currently earning above the cap in Irish Banks.
The scam announced by AIB, just shows that they will find a way to carry on regardless, it also demonstrates the contempt they hold for both Lenihan, and the Irish people