Nama, the bank assets and the solicitors letters as collateral

Another incredible bombshell.  Nama (the National Asset Management Agency) are discovering that banks accepted solicitors letters as collateral against loans to developers worth hundreds of millions.  So why no documentation?   Quite incredible.  What this means is yet more money paid out to lawyers to sort this out.

Who had first lien on the assets??   I suspect that double pledging was rife and the banks may find that they were way down the pecking order in thier lien over the assets.  The banks will doubtless threaten the developers with legal action but at the end of the day, yet again the tax payer will end up footing the bill as we bail out both the banks and the developers.

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