NAMA PLAN 'IMPRESSIVE' DESPITE RISKS - KINSELLA - NAMA's critics and the opposition parties have branded the plan a bail-out for bankers and builders. But a believable business plan could go some way to allay some of those concerns. How does this business plan manage that?
UCD Professor Ray Kinsella said a bail-out of the banks on this scale should have been accompanied by fundamental changes in the way banks operated. But he said the NAMA plan was 'an impressive piece of work', and was open and transparent.
The plan lists eight possible risks, including rises in interest rates and economic shocks. Professor Kinsella said euro zone rates would rise next year and it was not clear yet what impact this would have. There was also the risk of a prolonged recession in Ireland while the rest of Europe was growing.
He said the financial costs of NAMA were spelt out in detail, but the opportunity costs - including the fact spending on public services had been 'cut to pieces' for this bail-out - were not.
The UCD professor said it was important that NAMA had a strong board, which was credible internationally, and staff with technical expertise. He said that - whatever the misgivings about NAMA - there had been an extensive consultation period.
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NEWS AND CURRENCIES - Premier Foods, which owns brands such as Batchelor's, Mr Kipling and Bisto, has said its Irish sales in the third quarter of this year were 14% down compared with a year earlier.
The Dow Jones went above the key 10,000 level for the first time in a year yesterday. The move came after positive earnings news from Intel and JP Morgan as well as better than expected retails sales figures.
On the currency markets, the euro is worth $1.4952 and 93.11p sterling.
