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Nama - Too Many Locals and Insiders?

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Over the past few months, the Minister for Finance and NTMA have announced the membership of Nama's board and its senior management team.

Given that Nama is going to become one of the largest property managers in the world, it is very surprising that so many of these appointments have been drawn from the NTMA which has no prior experience or expertise in managing and running down a vast property portfolio. By way of confirmation, the former CE of NTMA told the Oireachtas Public Accounts Committee in May 2009 that "we have no experience of bank restructuring or the whole new area which is coming our way, and we will be on a very steep learning curve."

For the record, two of the eight members are from the NTMA and two of the four senior management appointments are from the NTMA. This means that one-third of the team leading Nama are NTMA insiders. Of the remainder, only one has extensive property experience, one works for a major multinational, two are former bankers, two are former public servants and two are accountants. Although an additional person with international financial and banking expertise will join the board in May 2010, this will not radically alter the team's range of expertise or experience.

Having previously commented on the need for Nama to have world-class management,  I would have expected to see more property, legal, banking and international expertise on a team managing a €80 billion loan/property portfolio. I would also have expected a somewhat larger board and executive team. This gives rise to a concern that Nama, by accident or design, may be under-resources at top levels and overly dependent on very expensive and footloose external advisers. 

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This page contains a single entry by Brian published on March 3, 2010 10:57 AM.

Irish Banking Enquiry - 2 was the previous entry in this blog.

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