Upcoming Events

National | Housing

no events match your query!

User Preferences

  • Language - en | ga
  • text size >>
  • make this your indymedia front page make this your indymedia front page

Blog Feeds

Irish Left Review
Joined up thinking for the Irish Left

offsite link New Books Worth Reading Mon Sep 19, 2016 23:25 | Seán Sheehan

offsite link 13 Billion ? Lucky for some? Mon Sep 05, 2016 13:04 | Tony Phillips

offsite link Rebuilding Ireland: Long on Promise, Short on Detail Mon Aug 29, 2016 22:20 | Eoin O'Mahony

offsite link Brexit and Other Issues: Comments on the Current Situation Mon Aug 29, 2016 21:52 | Brendan Young

offsite link Bin Charges: From Private Circus to Public Service Tue Jun 21, 2016 12:38 | Michael Taft

Irish Left Review >>

Spirit of Contradiction

offsite link Review: Do Religions Evolve? Mon Aug 14, 2017 19:54 | Dara McHugh

offsite link Fake News: The Epistemology of Media Wed Jun 07, 2017 11:52 | Gavin Mendel-Gleason

offsite link Officials and Provisionals Sat Apr 01, 2017 22:54 | James O'Brien

offsite link Interview with Cathal Goulding Mon Dec 26, 2016 17:11 | Cathal Goulding

offsite link Trump, Russia and the CIA Sat Dec 10, 2016 18:23 | Gavin Mendel-Gleason

Spirit of Contradiction >>

Public Inquiry
Interested in maladministration. Estd. 2005

offsite link Garda corruption: the stripped down truth

offsite link Will Pat Hickey turn up for his trial? Anthony

offsite link Garda breath tests letter Anthony

offsite link Daniel McConnell: Happy to wear establishment blinkers Anthony

offsite link State failing in its duty to enforce law Anthony

Public Inquiry >>

NAMA Wine Lake

offsite link Farewell from NWL Sun May 19, 2013 14:00 | namawinelake

offsite link Happy 70th Birthday, Michael Sun May 19, 2013 14:00 | namawinelake

offsite link Of the Week? Sat May 18, 2013 00:02 | namawinelake

offsite link Noonan denies IBRC legal fees loan approval to Paddy McKillen was in breach of E... Fri May 17, 2013 14:23 | namawinelake

offsite link Gayle Killilea Dunne asks to be added as notice party in Sean Dunne?s bankruptcy Fri May 17, 2013 12:30 | namawinelake

NAMA Wine Lake >>

New report highlights Irish government facilitation of vulture funds. Growing risk to Irish homeowners highlighted

category national | housing | press release author Tuesday May 03, 2016 23:00author by DDCI - Debt And Development Coalition Irelandauthor email hello at debtireland dot orgauthor address Unit F5 Spade Enterprise Centre, North King Street Dublin 7author phone +353 1 6174835 Report this post to the editors

Press Release - Tues May 3rd

DDCI calls on incoming Government to prioritise strict regulation of controversial funds

A new report released today (Tuesday May 3rd) by Debt Development Coalition Ireland highlights the manner in which vulture funds have aggressively bought up large volumes of debt in recent years, and how this form of financial speculation has had hugely negative social impacts both in Ireland and the Global South.

Entitled "From Puerto Rico to the Dublin Docklands: Vulture Funds and debt in Ireland and the Global South" the report shows how the Irish government has actively facilitated vulture funds through both the IBRC and NAMA.

Table of top ten vulture funds operatoring in Ireland
Table of top ten vulture funds operatoring in Ireland

DDCI calls on incoming Government to prioritise strict regulation of controversial funds

A new report released today (Tuesday May 3rd) by Debt Development Coalition Ireland highlights the manner in which vulture funds have aggressively bought up large volumes of debt in recent years, and how this form of financial speculation has had hugely negative social impacts both in Ireland and the Global South.

Entitled "From Puerto Rico to the Dublin Docklands: Vulture Funds and debt in Ireland and the Global South" the report shows how the Irish government has actively facilitated vulture funds through both the IBRC and NAMA. http://www.debtireland.org/download/pdf/ddci_vulture_funds_report.pdf

For example, Texas based Lone Star Capital bought 60% of all assets brought to market by IBRC, while 90% of assets sold by NAMA went to US firms, the majority to private equity firms.

DDCI Director, Maeve Bateman, said:

“Vulture funds have earned their nickname through the aggressive and unusual tactics they pursue. The government has welcomed vulture funds into the Irish property market, without properly considering the impact. We would call on the incoming government to prioritise this issue. Immediate steps need to be taken to find out just how many mortgages are owned by vulture funds unregulated by the Central bank, and to ensure that the tenants and homeowners living in these homes are better protected.

The relatively recent role of vulture funds in the Irish market highlights the ongoing impacts of our own debt crisis, and shows the case for an independent global sovereign debt resolution mechanism has never been clearer”.

The report’s author, Dr Michael Byrne of the UCD School of Social Policy, said:

“The funds’ history of aggressive asset management strategies poses significant risks for tenants and homeowners in Ireland whose homes are now simply assets on balance sheets for the funds, highlighted by the recent case of tenants in Tyrrelstown and business closures such as Clery's.”

The report recommendations include:

· The creation of an international sovereign debt resolution mechanism; · Legislation to bring about much improved transparency regarding the actions of vulture funds and to bring them under the regulation of the Central Bank · Greatly strengthened legal protections for mortgage holders.

ENDS

For further information contact Maeve Bateman, Director, Debt and Development Coalition Ireland, 01 6174835 / 087 2069017

Note to Editor: Vulture Funds are typically hedge funds or private equity firms who invest in bad debt. Bad or 'distressed' debt can be bought and sold on the secondary financial markets, and offers particular opportunities to achieve super-normal profits to investors who can buy it cheap and find a way to make the investment come good. Vulture funds operate in situations of crisis, pursuing aggressive and unusual strategies to take advantage of the misfortune of others. This form of financial speculation, and the lack of regulation in the financial system to manage it, has been shown to have hugely negative social impacts, both in Ireland and the Global South.

DDCI will have a public event on Wednesday with the report author Michael Byrne, David Hall and Tony Romano, a US housing activist. Event details are: http://www.debtireland.org/events/2016/05/04//



From Puerto Rico to the Dublin Docklands
Vulture funds and debt in Ireland and the Global South


This report was commissioned by DDCI and written by Dr. Michael Byrne.

Table of Contents

1. Introduction 2
2. Vulture funds: speculating on debt and crisis 3
3. Vulture funds and sovereign debt in the global south 4
4. The vultures come to Europe 6
4.1) The European financial crisis: an investment opportunity for vulture funds 6
4.2) Ireland’s great property give away 8
4.3) Understanding the risks posed by vulture funds in Ireland 9
4.4) The role of the Irish government in attracting vulture funds 10
5. Vulture funds, distressed debt and global financialization 12
6. Clipping the vulture’s wings: recommendations 14
6.1) Vulture funds in the global south: recommendations 14
6.2) Vulture funds in Ireland: recommendations 15
6.3) Financial crisis and distressed debt 16
Annex 1. Case Studies 17
Annex 2. Further Reading 20

PDF Document Report - From Puerto Rico to the Dublin Docklands: Vulture Funds and debt in Ireland and the Global South 1 Mb

© 2001-2017 Independent Media Centre Ireland. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by Independent Media Centre Ireland. Disclaimer | Privacy