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Updated 3.30pm
THE GOVERNMENT IS to support a Fianna Fáil motion on the tracker mortgage scandal which will reaffirm the pay cap in place for bankers and ban bonuses.
The motion, with a few amendments put down by government, will be allowed to proceed in the Dáil tomorrow, allowing for the voting against the reappointment of bank’s board where the State is a shareholder.
The government is a shareholder in Bank of Ireland, PTSB and AIB.
It also calls for a halt to all repossession actions where a mortgage is involved in the tracker mortgage examination.
Fianna Fáil is also calling on the banks to provide a firm deadline for all affected accounts to be identified, corrected, and for all redress and compensation to be paid.
The party’s finance spokesperson Michael McGrath said the total number of customers affected had yet to be revealed, but in his opinion, he estimates the total cost to the banks could come in at €1 billion.
The scandal has seen thousands of customers in a number of financial institutions in Ireland charged higher rates of interest than they should have been or being refused the option of a tracker mortgage.
Bonuses
McGrath said there should be no approval of salary increases or bonuses at the next AGM of any bank the State has shares in if the bank has not provided redress by Christmas.
“That is one very obvious power the minister has and it is not one we should be afraid to use,” McGrath told reporters today.
“We have to bring this back to the people affected at all times. There was a lady in my office in Cork yesterday and she was so upset.
“This has been going on for her for nine years and it has destroyed her life over that period of time. The motivation we have is not political, we want this issue to be brought to an end,” he added.
He said it was important that bank customers who believe they could be impacted get in touch with their bank. McGrath said he did not trust the banks to get in touch with all customers involved.
“It is important to send out a message to other customers who feel they may have been impacted by this but have heard nothing from their bank.
“They should make a written complaint to their bank, the bank will be obliged to respond to them and that will kick-start the formal process. It is inevitable that the 13,000 or so that are in this investigation will grow,” said McGrath.
The Fianna Fáil TD said the investigation into the scandal must be thorough, adding:
I don’t think it is reasonable that they all made the same mistake.
He did not say he believed there was collusion between the banks.
McGrath said his party would support the government’s efforts to strengthen the powers of the Central Bank through legislation, if they choose to do so.
‘Down and dirty’
“We need the Central Bank to get down and dirty and get down to the nitty-gritty of examining board minutes, management committee minutes, looking at telephone transcripts, and interviewing the people involved, because ultimately I do not agree this was all about systems and culture … people made decisions that cost their customers tens of thousands,” he added.
He called on the gardaí to get involved, stating that his party is in favour of criminal sanctions. “Whatever is necessary,” said McGrath, adding:
“If people are deceived [out] of their own money that is a criminal offence in existing law.”
“I think we need to have open dialogue with the Central Bank and I think the gardaí should be directly involved,” he said.
How is it that eleven banks in the State made the same mistake? They took their money off [customers] and they were very slow at paying them back.
At the end of the day, people make decisions and people made the decision to take these contractual rights off people.
McGrath said the banks had been dragged “kicking and screaming” to deal with the issue.
Financial sanctions
In terms of what sanctions are available, Fianna Fáil appeared to agree with the government’s assessment that any financial sanctions or levies imposed on the banks would only be passed on to the customer.
Yesterday, the Governor of the Central Bank said that the “vast majority” of customers affected by the tracker mortgage scandal would be repaid what they’re owed by Christmas.
Philip Lane said that the Central Bank would continue to press the banks to ensure that all of those affected by the scandal are included in redress schemes.
The CEOs of Bank of Ireland and KBC were at the Department of Finance yesterday for meetings with Minister Paschal Donohoe. Today, Ulster Bank and AIB had meetings with the minister.
A spokesperson for the minister said that “the banks have been dragging their feet in solving the problem, at real human cost”.
‘Unacceptable’
Minister Donohoe told the Dáil today that the way the banks have treated their customers is “disgraceful”. He said it was now time for the banks to act in the best interests of their customer.
I have made it clear to them that this is a disgrace… I will use my influence as Minister for Finance to bring clarity to this issue.
“They should have done this in the beginning,” he said.
He said the behaviour of the banks and the way they have not returned money to people is unacceptable, both to him as to me as Minister for Finance and as shareholder in three of the pillar banks.
He said he made that perfectly clear during his meetings with the banks over the past couple of days.
“Too much confusion still exists, too many people have not got their money back,” he said, adding that it should have been sorted out by now.
Donohoe is due to make a lengthy statement on the matter tomorrow evening during Private Members time when the Fianna Fáil motion will be discussed. The banks are also due to release statements on the action they plan to take.
So far, only PTSB, AIB, and Ulster Bank have offered an apology to customers.
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A billion eh? Short change compared to the billions we paid them to stay afloat
They couldn’t give a tuppeny fook about us now
Zero sympathy
Seriously think people who lost their homes due to this should have their homes replaced at the current market value.
Nobody seems to be addressing this only the refund of the overcharging and the return to a tracker mortgage are being considered.
Its simply not good enough!
Maybe the people who lost their homes could have an EU human rights case against these banks as they were forced to surrender their homes illegally.
@Anita R: lets not forget those who took their lives due to the pressure from these banks.
@”": Totally agree.
@Anita R: cancel their debt.
@Julie Wine: Exactly Julie what’s needed is a motion from ff/fg to have these gangsters put on trial for fraud, collusion and destroying peoples lives.
@Julie Wine: It’s not illegal. Govt is a shareholder in all the banks bar Danske and Ulster Bank. Shareholders get to vote on bonuses for the Board of Directors.
Surely there has to be a want for a public banking system in Ireland at this stage? Greedy bankers have destroyed this country
@Skinnerbot: An Post set up a bank a few years ago. It was shut down due to lack of demand.
@David Murphey: I don’t believe you. It either failed because it was a rubbish bank, or because the private banks had it shut down. Every country should have its own bank, but we all know what happens to countries, govts or individuals that try that…
@Skinnerbot: Greedy or not we still love these bankers and all their friends in Dail.
@Skinnerbot: The govt own upwards of 80% of every pillar bank in Ireland. We already have a public banking system.
@David Murphey: There was a French bank part owner & it went when financial crisis hit the world.
So everone can expect to be repaid and with compensation and tge bankers can protect their bonus. Nice one
@Dave barrett: exactly what I was thinking. Can see all the bankers running around screaming to get it sorted now that their bonus is at stake if it’s not sorted by Christmas. It should have been sorted ages ago and still no bonus or pay increase.
Banning bonuses is not enough those responsible need to be banned for life from working in the financial sector and face charges for conspiracy to defraud
Brilliant stop all bankers bonuses until all victims have been compensated. Bet that will work
What about Ulster Banks screwing of its customers with regard to Miss sold Swaps/hedges and the criminal activity of GRG/West Register ? See leaked FCA Report
Ban bonuses
Ban bonuses.
They f€€€ed the country, why has the notion of bonuses ever been considered?
Is it any wonder we are the fools of Europe.
@Trevor Hayden: Yes let’s all work in a socialist heaven where every employee is paid the same regardless of performance. If you had a company employing 2 sales people and one sales person sold 5 times what the other person sold would you pay them the same?
@Mary Murphy: If you forced people to commit suicide mary, would you expect a bonus?
@Trevor Hayden: you are going off the subject. You want to ban bonuses for every worker in every business. Do you think that is viable?
@Mary Murphy: I did not say every business mary but our banking infrastructure is a scam and a joke, i believe wage cuts should be put in place until this fiasco is resolved, not the tellers but higher management.
@ Mary Murphy: Do you think bankers should be given bonuses for defrauding people? Do you think bankers deserved bonuses before the economic crash. The banking sector talk about having to offer attractive financial packages in order to attract the best people. Well look what the ‘best’ people did before the crash & what they’re doing now as well.
@Trevor Hayden: People who f€€€ed the country are coming back in glory with plans of running for Presidency. That’s what most of Irish want.
It’s like two gangs of criminals, the politicians and the bankers, and the politicians are yet again trying to use the bankers as the scapegoats for gov incompetence. And the bankers know the gov are useless, so they’re pushing, trying to get away with as much as they can. In the end, neither bankers nor politicians will be reprimanded or held accountable, and the taxpayer will pay the price.
They all talk about costs for the banks but they got the money already from their costumers. The only extra cost will be the fines they have to pay and they will not be to high with a Central Bank that only works for the banks. All other cost is their own doing.
Fianna Fail: No Bandwagon Unboarded, Since 1932.
A sad day for Irish bankers.
So dissapointing to see people still shocked that banks are stealing from us… They’ve been duping and robbing people since before the time of Christ… There are mountains of books written on the subject and anybody in govt who claims that they are shocked by the actions of the banks should be sacked instantly, for either telling lies, or for being too uneducated to hold office… Everyone should understand what happens to countries, govts, and individuals that stand up to banks…
Let us never forget that FF were at the helm when this entire mess was created and the banks were bailed out. And now they are trying to look like knights in shining armour coming to the rescue. It really is pathetic.
@Shakka1244: Absolutely. And while we’re at it, let’s not forget that FG’s P. Sutherland (ex-chairman of Goldman Sachs) was supposed to have been the one to convince them to do it on the night. Bankers run countries, Republicans/Democrat, Tories/New Labour, FG/FF only exist so that the people believe they have a choice, they’re all the same…
These banking CEOs are nothing more than parasites who have no moral or ethical standards.
@Cindy Crawford: They will become archaic when the Crypto currencies go main stream. No need for banksters in a peer to peer digital cashless society, no more handling dirty notes and coins. What will they do for their outrageous salaries bonuses and huge pensions?
@James Doyle:
They will get their friends in government to make crypto currencies illegal they run the show you know.
@James Doyle: how will people get a loan in this financial utopia you speak of?
@James Doyle: while I think crypto currencies are great, and have been using them for over 5 years (stupidly not investing though ) They are not a solution to the problem of human greed. A bank is simply just a mechanism to direct invested money to borrowers, and taking a cut for providing that service. This need will always be there, and there will always be some vvanker trying to as much money as they can. The solution is proper regulation and proper punishment for breaking the rules. Forget taking their bonus. Lock them up.
@WinSomeLoseSome: When one gets a loan from a bank they just create a debt on their books, they only hold a 10% ratio of deposits to the loan book. eg if everyone who has a deposit in a bank were on the same day to take out their money that bank would have to close its doors when the 10% was paid out. Credit is created out of thin air it is called fiat money no assets or gold to back it up. As regards getting a loan i expect when Cryptos go mainstream the system will develop and will be able to offer loans, at fixed very low interest rates as the Crypto currencies can not be devalued like fiat money. There are huge swings in the value of Cryptos but there is a cap on how many can be mined to protect the intrinsic value.
@James Doyle: “the system will develop and will be able to provide loans” — oh, will it? Thats handy to know. how will liquidity be provided when people default? How will loans be approved? All blockchain technology is a distributed database for transaction processing. It is amazing, but what you are suggesting is way beyond its capabilities.
Irish journalists heaven. Trial of employees by Irish media with no recourse against them. Hang em High in true Irish media fashion. Sure they have no family, friends or acquaintances so what harm is there in publishing the American walk of shame. Pascal Donoghue note, on e day this will be you
@Tony Shaw: They should be hung high. The dogs in the street know that the CEOs of banks will put profit above all else.
All that will happen is the banks customers will foot the bill
The bonus will be loaded onto the car allowances or salary increments no doubt. Just like the imaginary salary caps, a derogation will be made by their buddies in Govt or a loophole found to get around the bonus issue.
Banks are becoming too powerful.
@Diogenes: they are already too powerful.
How about the Central Bank revokes banking licences of any bank that hasn’t compensated everyone by January 1st??
That’d get the skids under them…..
If I had been affected I would be reporting it to the Gardai as fraud as what happened is the very definition of fraud itself. If the other 30k people do the same then maybe something will happen away from the control and influence of the elected prostitutes who are supposed to support the law. Many other countries would be up in arms… literally.
In Ireland even if you are in your mid fifties and working to a zero hours contract delivering piazzas on a wet road at 2am, because you were laid off in 2010, despite the satisfaction you get in providing for your family..
You get the added satisfaction that you are contributing to the bailing out of nations banks, and pay a part in keeping the bankers bonused up and warm on the Caribbean beaches this winter.
Bonuses? Are you having a laugh? The fact that the bonuses are performance related is the exact reason why this disgusting behaviour happened in the first place. The wimp POD is a pushover and will just get lip service from the bank CEOs and they will just go back and continue to rip people off. Nothing has changed in fact if anything it’s got worse as the bankers know how bad it affected people yet are still doing it. I’m a capitalist and am proud of it but this behaviour is disgusting
Enough of this ban the bonuses nonsense. Criminal investigations and custodial sentences. Nothing less.
Blood In the Streets
Picture of Buoyant Banker Bernard Byrne betting his bonus will be big & bountiful notwithstanding contents of this article..
Motion my arse, Jail the F@$era, what is it with all this tip toeing around this debacle, haul these toerags before the courts
What about capping variable rates?
Have you heard Philip Lane questioned about this? Impressive is the last word that comes to mind.
About flipping time!!! Enough is enough
Don’t make me LAUGH!!!!
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