(By the way, as accounting specialists you will recognize that required capital is different to net cost: if the expected loss projections prove to be accurate, the net long-term fiscal cost will be lower than the required capital sum to the extent that the tender offer on subordinated debt is successful and to the extent that residual capital remains at an eventual wind-up.)
To summarize, then, four main components have been key to arriving at a total cost figure for the losses created by the bubble, and exposed by its bursting: NAMA’s first tranche haircuts and the Central Bank’s non-NAMA expected loss estimates for the main banks (both published in March); NAMA’s estimated all-tranche haircuts and the Central Bank’s required capital estimate for Anglo, which takes account of the management’s revised non-NAMA expected losses (both as of end-September).