Peter,

BOI can do this because they will create €100 million which won’t have existed previously when they issue the loan to Dilosk.

Here’s an IMF economist and a finance professor explaining this briefly in a 2 minute clip.
https://www.youtube.com/watch?v=b6_SLwReMqo

Banks have a license to create money from nothing and charge interest on it. Over 90% of the new money created in the world today is brought into existence by this mechanism.

@Coddler..Banks do not create money out of nothing. They don’t create money at all. We do. ..Money is an acknowledgement or record of entitlement one receives in return for giving up one’s own labour/production or property. Money comes into existence as a further representation of our promissory obligations that we have to each other. It is created out of our labour, production, goods and services. No new money is ever issued by a bank without one of us first signing a promissory note, or as banks like to (falsely) call it “a lone agreement”. The promissory note is backed up with our ability to earn and retire the money from existence with our very own labour and production. This is where the whole fraud of banking comes into play. When a bank issues OUR money it is in fact NOT a debt to the bank because the bank gives up no of value of its own and therefore risks nothing which nullifies any rightful claim the bank has to both the principle sum issued and interest. However, there is still a debt. The debt is the sum of principle and should be retired from existence by the person who created the money in advance of earning it. But it is NOT the property of the bank, it is the property of no one. The bank (falsely) claims that it loaned money to a borrower and then (falsely) claims its taking a risk and so ads (unwarranted) interest. There is a common misconception that money is created by banks out of thin air. Anyone who says such a thing does not fully grasp what money actually is. To say “money is created out of thin air” or “nothing” is to first deny your very own victimhood, and then to ignore the crime of theft the bank commits against all of us. I think the notion that money is created out of thin air comes from the acknowledgment that banks give up nothing of value when money is created and issued to us, but that is not to say that we likewise give up nothing of value. We do give up value; we give up our blood, sweat and tears. Banks do not create money, let alone create it out of thin air. WE are the true creators of money and we create it out of our labour and production. Banks merely publish OUR money. ALL DEBT TO A BANK IS A FICTION. If people only understood the monumental crimes and fraud banking commits against us every day, and the effects those crimes have on us and society, there would be no such thing as banks and every banker alive today would be in hiding for fear of being lynched by the people. Banks dispossess us of all our wealth because they launder our wealth into their possession via a falsified debt to themselves. When a bank makes a family homeless and takes their home they actually get a house for absolutely 100% free. In other words, the bank just stole the house. It’s also worth noting that at any given time due to unwarranted interest by the bank the money supply in circulation is always short of its represented property there by resulting in the inevitability of foreclosures, dispossessions, bankruptcies, depressions, repossessions, unemployment, poverty, suicides, wars, starvation, and a whole host of other human misery. There is nothing more intrinsically evil than banking. There is nothing that even comes close to causing such great human suffering on such a massive scale for such a long period of time as banking. Banks were a creation of Satan. Our struggle should not be about debt forgiveness or debt write-down’s, our struggle should be about the abolition of the banking system itself. It’s estimated the world is over $100 trillion in debt. Who in hell did the world supposedly borrow all this from? Answer, nobody, it’s all FAKE debt to the banking system. Why? Because the actual REAL debt has already been paid off, in multiples. It’s the unwarranted interest that keeps the FAKE debt alive and keeps us all enslaved to banks. If banking was abolished tomorrow around 96% of all the worlds debt would be wiped out. Poverty would end overnight. As long as we have banks intruding on our trade and commerce with each other the economy will never be anything more than just a lie.

Robbie,

There is a lot of truth in what you’ve said but I think we need to differentiate between money and real wealth. Modern fiat currency money is created at will on computer keyboards, mostly in the commercial banks when they issue loans. This money has no intrinsic value as it’s merely an electronic record.
Real wealth (e.g. housing, energy, food, clothing etc) on the other hand does have value, cannot be created at will and originates from the work which man brings to bear on the raw material of the planet. Money is just the mechanism by which people can access the real wealth of goods and services produced by human endeavour and intelligence.
One of the great cons of modern capitalism is that the power to create money has largely been ceded to private commercial banks who have utter disregard for the wellbeing of society as a whole and care only for their own bottom line. They have created a vast tsunami of new money and funnelled into speculative financial instruments and present this as wealth creation when it nothing of the sort. The banks, hedge funds, currency speculators, private equity funds, commodity speculators etc do not create an iota of real wealth. All that they do is to speculate on the work of others who do create real value. At its peak, the size of the global derivative market was around $750 trillion which compares with the total GDP for the entire planet of about $60 trillion. So theoretically every scrap of wealth produced in the known universe for over 12 years was tied up in financial derivatives like Sean Quinn’s infamous CFDs. This demonstrates the sheer folly of handing the money creation privilege to the markets as we found to our great cost in the financial meltdown of 2007/08. The power and privilege of money creation needs to be taken from the parasite banks and returned to the rightful ownership of the state and its citizens so that it can be utilized to restore the real economy and create employment. Instead of licencing the banks to loan interest bearing debt money into the economy, the state should be creating and spending free non-interest bearing money into the economy. The money can be directed to socially and economically beneficial and sustainable projects like infrastructure, housing, education, renewable energy, etc and providing voluntary jobs for the unemployed. This is one of key steps necessary to allow us to address the economic crisis and begin again the task of building an equitable society and economy which meets the needs of all the citizens. A sovereign currency issuing state can create as much money as is necessary in order to achieve this objective.

It’s no accident that the majority of the general population have no real understanding of where money originates from. This is incredible when you consider the central role that money plays in our lives. The vested interests want us to believe that monetary and banking systems are beyond our comprehension which is nonsense. The majority of people will understand perfectly these monetary & economic concepts when they are clearly presented without the jargon and propaganda that is used by the vested financial and political insiders to exclude people from the debate on the future of their own society. Professor Mary Mellor (Northumbria University) explains the topic much better than I in a series of 4 video lectures here:
https://www.positivemoney.org/2012/12/understanding-money-prof-mary-mellor-videos/

Coddler….It doesn’t matter if money is merely an electronic record or ink on a piece of paper it still has value because it is created by us with our labour and production. Sure, “housing, energy, food, clothing etc” has real value but they are the very things that we produce and the very things that create our money in order for us to trade those same goods with each other. I fully agree with you that “hedge funds, currency speculators, private equity funds, commodity speculators etc” do not create an iota of real wealth”. That is true; they pretty much do the same as banks in regard to laundering the wealth that workers create into their possession by manipulating financial markets. One might argue that they work for their money but that would be the same as saying a shoplifter or burglar goes out to work too. To say that money has no value is really doing yourself a disservice. But I must stress “value” & “price” is entirely artificial today due to the banks theft of what money represents, which is the stolen value of all our labour & production we give up to each other in any transaction. So if you paid say 30,000 euro for a house in the 1970s for example & that house is bought & sold many times right up to 2014 of course the price has been artificially inflated to a price of let’s say 300,000 euro & why you may ask ? it’s quite simple, If I purchased that house at 30,000 & paid the bank 60,000 I would then be looking for at least 60,000 on a subsequent sale thereafter wouldn’t I & this applies to anything produced simply because all new money that comes into circulation is only ever a sum principal paid into circulation from the outset of anyone’s promissory obligation. Contrary to the lie of economy that purports rising prices means rising value is simply false, because if you pay the value of principal X2 to a thieving bank on any ‘alleged’ loan the bank is therefore stealing the value of 2 homes right? BUT you only received the value of 1 house off the real creditor who is actually the guy gave up the house right.? The bank is essentially stealing the value of the house the real creditor gave up by stealing the production of the ‘alleged’ borrower by charging principal & interest for the mere cost of publishing the money. Now, to keep the illusion of rising value equal in proportion to price are two things here really.
1) ARTIFICIAL Price inflation caused by the very interest paid out of circulation on top of the former principal to thieving banks simply because what all industry & commerce pays to thieving banks is an added cost passed on to the consumer. CONTRARY to the lie that price inflation is solely caused by a (non-existent) circulatory inflation or the lie people ignorantly parrot that too much money printed or published above the cost of all goods & services produced is the cause of price inflation,, BUT how can circulatory inflation be the cause of price inflation if we are always paying principle and interest out of a circulation that only ever consists of some remaining principal? People therefore stupidly look at the national debt & assume not only that this is money created out of thin air but its likewise over inflating the volume of circulation totally ignoring the banks purposed obfuscation or the volumetric impropriety of charged interest (circulatory deflation) on all our phony loans at all local banks .
2) Government representatives therefore borrowing back what was stolen originally & then spending into circulation the irreversible multiplications of artificial debt which is the perpetual re-inflation or a poor attempt to only to sustain what’s left of all our industry & commerce until the very end where we all will be dispossessed of all our property & wealth.
In conclusion, it’s not rocket science really, simply because its mathematically impossible for ALL our industry & commerce to sustain what is an irreversible multiplication of artificial debt, growing by the day I may add, so naturally all business’s will hit the wall eventually, coupled with never ending artificial price inflation which is an added cost to all industry & commerce on top of unwarranted taxation to pay an artificial national debt that’s mathematically impossible to pay down so long as we are paying any sum of interest on our own personal but falsified debts. Logically therefore we will be dispossessed of all our property & wealth, public & private, wont we mate.
We are seeing this already, the volume of people being dispossessed of all their property is growing by the day only so that what’s left of all our industry & commerce can pay their falsified debts to banks however we are now in the terminal cycles of dispossession worldwide where not even what’s left of all our industry & commerce can sustain the irreversible multiplication of artificial debt. I don’t think either of us are worlds apart on our understanding of the misery that private banking cartels and financial markets cause to our societies and indeed to our planet as a whole. But Coddler, if you’re following positivemoney,org I can assure you they are sending you in the wrong direction. This is already evident in your belief that money is created out of nothing. Just look at who is behind positivemoney. Simon Dixon, an investment banker. If you’re looking for a true monetary justice as opposed to the corrupt fraudulent system we have the misfortune to live with today then I suggest you spend some time on Mathematically Perfected Economy™. It is the ONLY real alternative. Below is a link to an MPE site, if you’re interested, its a very good explanation of how money is created, issued and then laundered back into the banking system via a falsified loan subject to unearned interest…
Peace
http://australia4mpe.wordpress.com/category/testimony-of-a-banker-about-a-foreclosure/

If your agreement was a regulated agreement when it was made, it will remain regulated whilst it remains in force. The loan portfolio is not becoming unregulated just because it’s new owner is not regulated. An unregulated entity has to behave itself in contractual dealings with it’s customers. Being unregulated essentially means it is not subject to Central Bank supervision with regards to capital and other funding, directors and managers, asset quality etc.

Borrowers whose loans have been sold on should see no difference in the conduct of the lender.

So if they are UNREGULATED how can they provide mortage facilities???
Theyll be outside the vontrol of the CB … In other words AN UNLICENSED MONEYLENDER

Pat, I agree something is not right…will we ever learn

Sean, more information coming out.

The sale was ordered by European Commission competition authorities last year

They are all ICS mortgages.

The buyer is an Irish company looking to be regulated as a mortgage lender in this country.

All the mortgages are performing.

None are on tracker mortgages.

This is a small fraction of the 6.7 billion in loans left that will now transfer into BOI along with th deposits.

Is this the “good bank” and BOI is the bad bank.

.

Could well be

Sean, “performing” is a weasel word. Needs to be qualified. Performing well or performing badly or somewhere in between. Read the words, not the gloss.

They should say if it’s ever been a foreborne loan…performing is a loose term that tells you nothing of the quality of the loan.