Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
THE GOVERNMENT CHIEF whip in the Seanad has accused foreign banks exiting the Irish market of a ‘slash and burn’ approach to dealing with their customers.
Senator Paul Coghlan said that he has asked the chairman of the Finance Committee Ciaran Lynch to bring the chief executives of Danske Bank, Rabobank and HBOS/Certus before the committee to grill them on their customer treatment.
Coghlan, who is on the Finance Committee, said: “If left unchecked, the actions of these banks could do serious damage to the recovery of the Irish economy and the creation of jobs.”
Aggressive approach
He claimed that some institutions are extracting a heavy toll on their customers and adopting an “excessively aggressive approach” to realising the security advanced on their loans during the boom.
Coghlan said that he had heard “serious and disturbing accounts of bad conduct by the banks”.
He listed several allegations against exiting banks, including:
SME sector badly hit
Coghlan said that small and medium enterprises who had borrowings with these banks were being particularly badly hit.
Companies in the retail, hospitality and catering sectors were among those he singled out, arguing that some non-national lenders had a high profile in these industries disproportionate to their market share.
He said:
It is imperative that in exiting the State they behave responsibly and do not damage our economy through an excessive zeal to maximise the cash they extract from customers on the way out.
He said that he has also raised the conduct of exiting banks with governor of the Central Bank, Patrick Honohan.
Speaking at the Finance Committee yesterday, Honohan said that he would “very much like” to get concrete evidence about allegations surrounding the practices of exiting banks.
He said that he would not rule out seeking engagement with the ambassadors of the country of a bank’s establishment over the matter.
To embed this post, copy the code below on your site
Coghlan could have a discussion with Rich Richie Boucher on the conduct of banks still in Ireland and their treatment of those who owe money. He could also talk with Noonan and the rest of the government on their agreement to sell Irish mortgages to third parties……
Quite right Kerry…and he might remember that trying curb the “excessive zeal” of cash extraction from this country does not simply apply to banks but institutions like the IMF as well.
He’s worried about foreign banks, does he think they give a feck what he says?, when even the Irish banks have nothing nothing but contempt for politicians.As evidenced by anyone who saw them appear in front of Dail committees
I have a UK business – which has been very badly affected by Bank of Ireland’s exit from the market there. Would Coghlan raise that with the Central Bank as well – or is it alright for Irish banks to pull out of markets, but not foreign banks in Ireland?
It seems to me that the only banks who are taking bankrupt businessmen to task are the foreign ones.
Now that AIB has been nationalized I have no doubt that their debtors will not be vigorously pursued.
Why should the ordinary taxpayer finance debt forgiveness for greedy businessmen and speculators who signed up to the Celtic Tiger Property Ponzi Racket and got their fingers badly burned.?
Check out this video.
a confrontation between Jerry Beades and FG Minister John Perry.
It may be the tip of the iceberg.
http://youtu.be/SD1VbwOIkDk
have your say