TODAY, BANK OF Ireland chief executive Richie Boucher and three of his executives were asked to come before the Oireachtas Finance Committee to answer questions on how the bank is tackling the mortgage arrears crisis.
Once the bank had been accused of “playing the committee for fools” and forcing TDs into “chasing them around a maze“, the assembled politicians had their chance to ask questions.
First, Arthur Spring drew a blank when attempting to question Boucher on his salary.
Then, Stephen Donnelly accused the bank of profiting from restructured mortgages.
Donnelly also said that “at least” 90 per cent of interest only mortgages in Bank of Ireland will end up paying more money to the bank.
In at least 90 per cent of these restructured mortgages, the account holder will end up paying more money.
(Stephen Donnelly/YouTube)
“I accept that this is the sensible thing for you to do, however for us as public representatives, allowing you increase how much householders pay you is wrong.”
Independent Fine Gael TD Peter Mathews followed Donnelly and took aim at what he called a “shameful episode”.
“I think the banking sector here and abroad has been disgraceful and crushed households, distressed them, distressed and crushed indigenous businesses.”
“Banks have abandoned their principles”
Mathews said that the banking sector had “abandoned its prudential principles” and “created a credit asset bubble”.
And how dare a banking sector think that they’re entitled to collect all the loan that is secured on that asset that they have helped to pump up, consistently for six years?
(Hugh O’Connell/YouTube)
Mathews went on to warn that Bank of Ireland may not be sufficiently capitalised for the future, which is why they are slow to act on mortgage restructuring.
If you rerun the provisioning, and I suggest you do…you come up at a figure of €14.6 billion of required provisions and you’ve only got €8.1 billion. Which means you need an extra €6 billion in capital.
“And this is why people like Fitch and Moodys are saying the Irish banks are under capitalised.”
Mathews said that Socialist leader Joe Higgins was right when he said that “€70 billion of private losses” be absorbed by the public, saying that Ireland had to “drain the swamp” to allow the economy recover.
To embed this post, copy the code below on your site
have your say