Larry buys local farm from Vultures

ANXIOUS

patsy_mccabe wrote: »

I don't think banks should not be allowed distance themselves from their bad loans. If they had to deal with their own bad loans, it would have a twofold effect. Firstly they would have to deal with the bad press from it and so more likely to be vigilant to those they lend to and secondly, the general public would be more causious about borrowing in the first place.

The simple thing for them to do is just call in the loans. Rabobank aren't in ireland any longer so they won't care about any negative publicity.

ganmo

ANXIOUS wrote: »

The simple thing for them to do is just call in the loans. Rabobank aren't in ireland any longer so they won't care about any negative publicity.

They’re international so any bad press could hurt them

ganmo

ganmo wrote: »

They’re international so any bad press could hurt them

Rabo are Dutch. Iv lived in NL and still do work for dutch companies. There is a very different attitude to money and debt in NL (in my and my colleagues experience anyway).

They are a very straight and honest people, but...... woe betide anyone who makes a deal and doesnt pay up.
So the bad press wont worry them, its strictly business.

freedominacup

Topgear on Dave wrote: »

Rabo are Dutch. Iv lived in NL and still do work for dutch companies. There is a very different attitude to money and debt in NL (in my and my colleagues experience anyway).

They are a very straight and honest people, but...... woe betide anyone who makes a deal and doesnt pay up.
So the bad press wont worry them, its strictly business.

I wonder what an opinion piece linking rabobanks actions here to "nervousness amongst analysts" about the ongoing massive multi generational debt load in Dutch agriculture would do for them.

Hard Knocks

Bass Reeves wrote: »

There will be more weeping and gnashing of teeth. In the sunday times today it is reported that Rabobank intend to sell off it loan book portfolio to vulture funds as it exits the Irish market completely. While they have not being lending in Ireland for a few years there loan book was being managed externally by Capita. Now it will be sold

So that’s good & bad loans gone to vulture funds?

kowtow

Mr. Incognito wrote: »

I dont see the issue

Borrowed money. Spent it.

Gave farm as security. Security called in.

The end.

Take responsibility for your own actions and dont be whining.

Agree completely, provided that the same rule applies to everyone.

The problem in this country - and I say this as someone who has been on both sides of the fence - is that we have protected the banks against their own actions (bad lending) by writing an implicit, and eventually explicit, indemnity for them. No such indemnity exists for the borrower.

Banks will continue to write bad loans so long as they can rely on the vanity of politicians to ensure that they are protected from the negative consequences of their actions.

At the very least when we gave the banks an indemnity backed by the future earnings of every individual in the country, born and yet to be born, we should have outlawed and voided the ridiculous personal guarantees that clouded every lending decision in this country. This is asset lending, the banks should look at the asset and no further - but what did we get instead? More reliance on future earnings (now called repayment capacity, under the guise of protecting the borrower) and more personal guarantees.

If you want lending discipline you need lower loan to values and no personal guarantees. Do that and you'll get both a stable property market and secure (if unexciting) bank loan books.

croot

cute geoge wrote: »

Would that be including some of the old acc farm loans as i think rabobank bought acc at some stage

Yes. I have a loan with them originally taken out with ACC before the take over.

Hard Knocks wrote: »

So that’s good & bad loans gone to vulture funds?

Yes. Capita have been managing Rabobank's loan book and the loan book for Danske bank a good few years. Unfortunately I have a loan with both (tracker mortgage with Danske). Both fully paid up and never in arrears. The Danske loans are already sold to a vulture fund and the Rabobank will be.

duffysfarm

has there been a further twist in this saga? word is that the deal may have fallen through because of a potential conflict of interest by the purchaser

ganmo

duffysfarm wrote: »

has there been a further twist in this saga? word is that the deal may have fallen through because of a potential conflict of interest by the purchaser

Meaning Larry has a shareholding in the vulture fund?

Bass Reeves

ganmo wrote: »

Meaning Larry has a shareholding in the vulture fund?

Ooops

duffysfarm

thats the latest!

ganmo wrote: »

Meaning Larry has a shareholding in the vulture fund?

adamhughes

don't like the guy but its business, I worked in one of his beef factories and boy was it bad too and it would open your eyes, glad to get out of it