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No realistic alternative to Nama, says Taoiseach - The Irish Times - Thu, Sep 17, 2009

Shares in AIB and Bank of Ireland made strong gains today, with both finishing up at close of trading. Bank of Ireland finished 18 per cent higher at €3.38, while AIB at €3.37 a gain of 28 per cent.

However, Irish Life & Permanent, which is not participating in the Nama process, saw its share price drop 5 per cent mid-morning, although it regained some ground to close fractionally lower at €5.85.

Green Party leader John Gormley said his party will pull out of Government if its party members reject Nama and the new programme for government at the Green Party's convention scheduled to take place on October 10th.

Speaking on RTÉ's News at One Mr Gormley said his party would be pressing for further amendments to Nama to promote a social dividend and ensure a windfall tax is part of the legislation.

"If Nama and the programme for government is rejected on October 10th we could not continue our participation in Government," he said.


The Financial Times said: "Either way Ireland is on the hook. The more banks rally, the more likely Dublin will be stung for the recapitalisations that will surely loom. If they don't, Dublin will have to foot the bill anyway."

Speaking during the resumed Dáil debate on the issue this morning, Mr Cowen rejected suggestions that Nama is a bail-out for bankers and developers.

"Nama is not designed to be and will not be permitted to operate in practice as a bail-out mechanism for anybody who has operated irresponsibly," he said.

Mr Cowen told TDs alternatives to Nama proposed by Fine Gael "unrealistic" and "not founded in any practical plan."

"The suggestion by Deputy Bruton that we can divide most or all of our banks into a good and bad bank system without disrupting the flow of finance to the economy is totally unrealistic and not founded in any practical plan."

Fine Gael leader Enda Kenny said Nama was a "fatally flawed piece of legislation. He told the Dáil this morning it was the "economics of the madhouse, supported by the fiction of long term economic value".


The full extent of bank forbearance with large property borrowers was revealed for the first time when the Minister disclosed that the loans Nama will acquire include €9 billion in overdue interest payments.

notes from no w here
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Thu Sep 17th, 2009 at 03:15:36 PM EST

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