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Mortgage arrears…vulture funds and profit mania! September 7, 2016

Posted by guestposter in Uncategorized.

Thanks to the person who forwarded this, the latest from Archon of the Southern Star.

When historians chronicle the life and times of Enda Kenny, a question they’ll ask is why he did nothing to help thousands of ordinary homeowners who find themselves in mortgage arrears as a consequence of an economic crisis not of their making, and who now face repossession of their homes.

Importantly, they’ll want to know his reasons for encouraging US vulture funds to feed avariciously upon the misfortune of such people.

Vulture funds are private equity firms and hedge funds that have a single-minded purpose: to make outlandish profits at the expense of victims of the bust Celtic Tiger. At a huge discount they purchase bank debts from NAMA and the IBRC and benefit by pushing up yields on Irish property.

They include outfits such as Cerebus, Lone Star Capital, Blackstone, Oaktree Capital, Starwood Capital, and the Fine Gael favourite, Goldman Sachs.

So far, Kenny’s only explanation for welcoming the vultures is that they contribute to a strong inflow of foreign capital. Which is true.

The website Journal.ie reported that on March 4th, 2015 Kenny’s Department of Finance organised a conference to facilitate vulture funds ‘at which figures from the Irish property industry would “network” with private equity firms and other global financial players.’

The Department of Finance met with fund managers on 65 occasions between 2013 and 2014, and Kenny privately met with Blackstone in late 2011. The Minister for Finance, Michael Noonan, met with Lone Star capital three times and with Apollo capital twice in 2013 and 2014.

In contrast, the government spoke to groups advocating on behalf of mortgage holders just five times!

Vulture funds currently possess up to 90,000 Irish loans. The Irish Nationwide Building Society, Bank of Scotland, Bank of Ireland and Ulster Bank originally owned many of the loans before they chose to off-load them, via Nama, to the American pedlars.

With regard to ‘distressed’ mortgages, US predators now possess 47,000 of them (the exact number is unknown as vulture funds are not regulated by the Central Bank). In other words, instead of trying to work out a system to protect Irish homes in grave danger of repossession, Kenny has helped fuel a mortgage crisis that may yet result in mass evictions.

In the old days, banks sought an accommodation with borrowers in financial difficulties, but vulture funds have no social conscience, no sense of obligation and no notion of compassion or civic duty. They are not interested in the long term.

Driven by a mania to make handsome profits, they are indifferent to the suffering they inflict on thousands of Irish families.

As in America, the asset management strategy of these buckos is to squeeze the debtor who can’t produce immediately the spondulox to pay the mortgage or loan. Court proceedings, evictions and repossessions become the order of the day.

Thanks to Kenny, who invited these primitive vulgarians to our shores, we are in for a dose of brutal American-style capitalism, the likes of which is alien to traditional Irish humaneness and compassion.

And although people are stunned at what is taking place, the story gets worse. For instance last month the Irish Examiner reported that Social Democrat TD Stephen Donnelly claimed in the Dáil that a US vulture fund had set up an Irish subsidiary, Mars Capital, to avoid paying taxes in Ireland on its huge Irish profits.

(In fact, Permanent TSB sold its subprime mortgage book to Mars Capital Ireland, a fund linked to giant hedge fund Oaktree Capital).

‘I believe,’ said Donnelly, speaking under Dáil privilege, ‘these vulture funds are about to pull off the largest avoidance of tax on Irish profits in the history of the State. The scale is likely to be in the tens of billions of euro in missed taxes.’

This is how De Paper carried his comments: ‘Mars Capital, a mortgage company, was owned by a registered charity, the Matheson Foundation. The charity’s mission was to help Irish children to “fulfill their potential.” It also contributed to causes such as the Irish Society for the Prevention of Cruelty to Children, Bernardos, and Temple Street Children’s University Hospital.

‘The company, through the charity, was not paying tax on its profits here under a corporation tax loophole called Section 110, said Mr Donnelly. In one year, it had paid a total €250 on profits of €14m, made from buying up distressed mortgages.

‘He went on to say that he understood almost all of the vulture funds whose profits are generated in Ireland have section 110 status. How big is the scale of the tax avoidance by these vulture funds?’ he asked.

In response, Tánaiste Frances Fitzgerald said officials from the Department of Finance were currently examining ‘the use of certain physical vehicles for property investments.’ If necessary, ‘appropriate action, including legislative action, would be taken,’ she said.

It’s all somewhat stomach churning, in view of the fact that the mortgage calamity is in its infancy and worse is to come. According to Focus Ireland, an organisation that helps homeless families and children across the country, already there are 5,344 vulture fund-owned homes in Cork.

More than 13,000 properties in Dublin are owned by vulture funds, with 2,500 properties in Galway in the hands of the predators.

Focus Ireland is not happy with the way the Department of Finance regulates the vultures and has called on Kenny and his government to stop their influx into this country.

It points to the controversy in Tyrrelstown, Co Dublin, where a Goldman Sachs vulture fund bought an entire apartment complex and attempted to evict all the tenants –sixty families!

Ironically, and no doubt to the delight of the vulture funds, the demand for housing is far outstripping supply. At the same time, rent inflation shows no sign of slowing down.

Rents in Dublin are now higher than at the peak of the Celtic Tiger, leading to a spike in homelessness (average cost of renting a double room in the city centre is €682, while a house will cost a rentee at least €1,500 a month – sums that are unaffordable for many tenants).

Yet, if the will existed among Blueshirts, something could be done: such as the regulation of rent increases. In Berlin, for instance, special rent-control legislation curbed the fastest-rising rents in Europe.

The city prohibited landlords from charging more than 10% above local average rents.

Berliners argue that keeping the city affordable for lower-income residents takes precedence. They want to prevent a situation whereby people on low incomes are obliged to live in the suburbs while the centre becomes the haunt of the super rich.

Berlin is succeeding in its plan. But, predictably, Enda Kenny and chums have no plan. Absolutely nothing, except to be party to misery as the rampant exploitation of Irish families continues unabated!


1. Roughan - September 7, 2016

A good piece and thanks for posting.

It is positive to see the Government committed to move to close off controversial tax loopholes allowing vulture funds to avoid tax. Provisions of the legislation, especially section 110 of the Finance Act 1997, have allowed such funds – which have acquired billions of euro of distressed debt and properties – to minimise their tax bills to negligible amounts – with some only paying €250 tax a year on profits of many millions.

Focus Ireland has welcomed that the State is now moving to stop these funds exploiting tax loopholes as this was one of the key actions Focus Ireland has called for in our campaign..

However, there is still work to be done and we must not lose sight of the vital issue of fully protecting people’s homes. Urgent Government action is still needed to stop these vulture funds buying up distressed properties from banks or other third parties such as NAMA.

At the very time there are record numbers homeless in Ireland and there is concerted action by all to tackle the housing and homeless crisis it is unacceptable that the State is failing to provide proper protection to thousands of vulnerable families and individuals behind these mortgages or living in buy-to-let properties.

Please add your voice to our campaign now to help stop vultures stealing our homes before there are more families evicted in the coming months and years. You can see the risk in your area and join the campaign at http://vultureshock.focusireland.ie/


dublinstreams - September 11, 2016

a very contrived email harvesting campaign ‘Could your area be at risk of vulture shock?’ http://vultureshock.focusireland.ie/


2. Paddy Healy - September 16, 2016

Full Discussion http://wp.me/pKzXa-Cp
“This is confirmed by people with knowledge of the agency’s dealings. In his letter to the Minister for Finance decrying the C&AG report, Nama chairman Frank Daly pointedly remindedMichael Noonan that it was operating on his instructions when it accelerated the sale of its loan book.
Daly reminded Noonan this approach was “endorsed by you” during the agency’s 2014 review, when it adopted the target of 80 per cent of senior debt (disposal of a cumulative total of €24 billion) by the end of 2016″.-Irish Times 15/09/2016


3. Paddy Healy - September 16, 2016

Kenny, Noonan and Labour Ministers Gave Away Billions in Bank of Ireland Shares
U. S.Vulture Capitalist,Wilbur Ross, Celebrated Huge Windfall Gain in BoI Shares on Bloomberg TV
Kenny Refused Call of Seamus Healy TD to Sack Noonan
“The answer to the Deputy’s question is that the Minister will not be sacked”


4. Paddy Healy - September 16, 2016

The State has missed out on huge tax profits through its sale of distressed home loans!!!!!
VULTURE FUNDS-Does anybody believe that the Department of Finance (Headed by Noonan) and the revenue commissioners did not know that Banks and NAMA were selling huge numbers of homes to Vulture companies who were PAYING NO TAX? If they didn’t know, they should be sacked.
The likelihood is that in its rush to sell off property, the government knew but, at best, didn’t care
Full Discussion http://wp.me/pKzXa-wc
How did the Government shaft mortgage holders and taxpayers in one fell swoop?
The State has missed out on huge tax profits through its sale of distressed home loans


5. Paddy Healy - October 3, 2016

Anti-Eviction Campaigner, Ken Smollen’s post on Facebook

But Sinn Féin and Independents for Change Must Share Some of the Blame for Agreeing to Flawed Recommendations of Oireachtas Committee on Housing and Homelessness

The Committee recommended that a halt to evictions should be subject to the advice of the attorney general. The same attorney general had advised the previous government against such a halt. Fine Gael had no difficulty in agreeing to the recommendation!!

The Oireachtas Committee on Housing also recommended that PERMISSION be sought from EU under Fiscal Treaty to borrow money to build houses!!! Taoiseach has written a begging letter to EU without success. President Higgins has said that government should go ahead without permission.

The anger at the continued evictions is more than justified. However, my bother Seamus Healy TD(Tipperary) has repeatedly called in the Dáil for the formal declaration of a housing emergency and a total halt to evictions. The formal declaration of a housing emergency is required to overcome the qualified protection of the private property of banks and landlords in the constitution.

Vulture Funds Are Evicting People

But the GOVERNMENT ITSELF is evicting people through banks in which it holds a majority of the shares (AIB, PTSB, EBS)


6. Paddy Healy - October 16, 2016

Family Home With Several Children In Clonlara Co Clare : Possession Recovered by PEOPLE POWER AND
ANTI- EVICTION TASK FORCE After House Shuttered up
By Security Firm Earlier in the Day
STOP EVICTIONS http://wp.me/pKzXa-wc

Congratulations To All Involved
Footage of the events which took place on Friday Oct 14 can be found on the Facebook Page of Patrick Banjo Hannon and by scrolling down to view several posts

Let us stop the Evictions by People power.

If anybody knows of a planned eviction in advance, please ring me so that I can spread the word. Mobile 086-4183732.
Can we set up a private list of telephone numbers for texting?


7. Paddy Healy - October 18, 2016

Full Report http://wp.me/pKzXa-wc

Video of incident- Pat Hannon



8. Críostóir Walters (@Lighthorse16) - December 6, 2016

We are taught to hate Dictators because they are supposedly un-democratic, which is really code for anti-Vultures. It is true, Iran is not under the thumb of Goldman Sachs et al, nor was Qaddafi, Saddam Hussein or Bashar Al Assad(They are determined to end the Assad dynasty and install their Vulture friendly cronies like they did in Libya and elsewhere. The Germans back in the 30’s made documentaries highlighting the modus operandi of the Globalists. I’m sorry, but when will people learn? They cling to “Democracy” as if it is the be all and end all when in reality it is a tool the likes of Goldman Sachs use to convince us that Fractional Reserve Banking is good, Vulture funds are good and the destruction of your civilization through debt is good. We had someone on the Radio this morning saying the Credit Unions being controlled by the Rothschild Central Bank is good and to add to the “Goodness” he said their will only be 100 Credit Unions in Ireland in the near future. Right, thousands of employees being made redundant is good? And a fair number will probably lose their homes to the same people who made them jobless. Ireland is lacking a Nationalist sense of pride.I’m serious.You drag out your Flags during the Olympics but when the games are over you hide your flags away. It is now you should be unfurling the banners.


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