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Ed Sibley appeared before the Oireachtas Finance Committee last month to discuss the action being taken by the Central Bank in relation to the scandal.

Central Bank wants bank execs to 'take a long hard look in the mirror' over tracker scandal

Deputy Governor Ed Sibley said he expects board members to be held to account over the errors.

THE DEPUTY GOVERNOR of the Central Bank has said he expects board members of banks who overcharged their customers to be held to account for the damage caused by the tracker mortgage scandal.

Speaking today at the Eversheds Sutherland Conference, Ed Sibley said decisions had been made in the short-term interests of the shareholders and there was a focus on whether decisions were legal “with too little consideration of whether they were ethical or in the interests of the customer”.

“Ironically, this behaviour has been massively destructive for long-term shareholder value, as well as customers, and financial stability.”

He said the behaviours and underlying culture within financial services firms had been “wholly inappropriate”.

“I expect all the main banks will be subject to Central Bank enforcement investigations. As part of these investigations, interviews with relevant individuals have been and will be conducted, and large volumes of documentation have been and will continue to be gathered and reviewed,” Sibley said.

Moreover, I expect the boards, the individuals on the boards and the executives to be accountable and to be held to account for not only the initial decisions which started the consumer detriment, but the persistent and ongoing behaviours and decisions that magnified this harm over an extended period.
As well as answering to the Central Bank, I would expect them collectively and individually to be taking a long hard look in the mirror, and as pre-approved control function holders to be actively considering their responsibilities regarding disclosure and whistleblowing.

He said the Central Bank is “under no illusion” that continued pressure is required to ensure all affected customers receive redress and compensation and banks comply with its findings.

‘Sincerely apologise’

His speech comes as Danske Bank released publicly for the first time information about the number of its customers impacted by the scandal.

The bank has identified 60 accounts where the incorrect margin was applied and customers were charged the wrong rate of interest. It said the margin error is 0.26% on average.

A further 18 customers who may have had a reasonable expectation of a tracker rate when their fixed term passed were not offered the option, or it was not made clear to them that they had the option.

None of these errors, according to Danske Bank, resulted in the loss of ownership of property. The bank has set aside €600,000 to cover costs of paying back and compensating impacted customers. It will be writing to those affected with an offer of redress and compensation by mid-December.

Danske Bank said it would like to “sincerely apologise for the errors and any distress caused to impacted customers”.

Related: Bank of Ireland confirms additional 6,000 customers overcharged in tracker scandal>

Read: How Germany’s public banking model could make Ireland’s sector more customer-friendly>

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    Mute Fergal Reid
    Favourite Fergal Reid
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    Nov 30th 2013, 10:42 AM

    The people of Ukraine, particularly western Ukraine, feel like they’ve had their future stolen from them by Yanukovich and Putin. They’re right. These protests are about the existential future of the country and whether it turns west to Europe or east once more to Russia.

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    Mute sean t bugger
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    Nov 30th 2013, 10:58 AM

    Spot on ferg. Been there many times. They need visa to go anywhere outside Ukraine. Average job is 300 a month. They want the same freedoms and chances we have.

    Why don’t we protest like this? ?? Silly boy nieve boy. We collectively through national greed got ourselves in this mess. Sure bankers were horrifically horrible b@stards but it was property sellers wanting more and more. People living on credit. Ourselves to blame and we know it and we know we have to pay the piper and live with the hangover.

    So that’s why. No more of this uneducated why dont we protest drivel. We don’t cos we know we are to blame.

    Oh and alot of good its done for the Greeks.

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    Mute Fergal Reid
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    Nov 30th 2013, 11:09 AM

    Yup. You’re on the money yourself. Ukraine is a Second World disaster zone (literally in parts, thanks to Chernobyl). Ireland is not. Different circumstances, different protests. Walking down the street with a placard is not a righteous act in and of itself.

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    Mute al shamen
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    Nov 30th 2013, 11:38 AM

    You do know that ethnic Russians who naturally feel a close affinity with the country of Russia make up a large percentage of ‘The people of Ukraine’ don’t you?

    20
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    Mute Coddler O Toole
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    Nov 30th 2013, 11:59 AM

    Sean, all 6 of the Irish banks collapsed in 2008 because they speculated massively and greedily on commercial property. This collapse and subsequent suicidal bailout triggered a deep rececesion which now sees hundreds of thousands unemployed and unable to pay the inflated mortgages they took on to house themselves for the most part. These people played no part in the economic collapse so please don’t presume to admit guilt on their behalf.

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    Mute Fergal Reid
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    Nov 30th 2013, 12:06 PM

    Ukraine is bifurcated between an ethnically Ukrainian west and an ethnically Russian east. It’s like Belgium only a DISASTER.

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    Mute Linda ralph
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    Nov 30th 2013, 12:19 PM

    Idiot

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    Mute Linda ralph
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    Nov 30th 2013, 12:21 PM

    That was for sean

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    Mute sean t bugger
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    Nov 30th 2013, 4:01 PM

    Whatever. But yes our disaster was collectively our fault. Selling your house in 07 damn it I want 500k although I paid 50k in 80s no wont accept 490 damn it lets push it to 550.

    Developers made huge money off our greed and the banks lending more encouraged our grees for their profits. Its all greed.

    Mind you in Ukraine in kyiv and the west its anti Russian they after all caused a famine. But one corrupt country. Justice for those who can afford it huge class differences. So refrain from input unless you have idea what your talkung about as clearly you don’t.

    Ta ta

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    Mute Philip Kenna
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    Nov 30th 2013, 10:59 AM

    Looks like mother Russia pushed some buttons.

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    Mute Aireach
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    Nov 30th 2013, 11:53 AM

    The over zealous expansion of the “EU” has to stop somewhere. Ukraine has never been historically,politically or culturally associated with western europe.

    Where do you draw the line?

    The EU doesnt need another basket case country on its books. It’s full of them already.

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    Mute Aunty Simmonite
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    Nov 30th 2013, 10:58 AM

    Yanukovych’s decision to scrap the EU deal was because he thought that the price of entry to the EU was too high. He must have been thinking of Greece.Maybe Spain or Italy or even ,dare I say it, Ireland.

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    Mute Fergal Reid
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    Nov 30th 2013, 11:11 AM

    I beg your pardon? He wanted hundreds of millions euro more in loans than had been offered. It was a combination of blackmail and bowing to Russian pressure. I hope they get lot of cheap gas because they ain’t gonna get nothing else out of this shabby deal with Moscow. Maybe Putin will let them keep the Crimea.

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    Mute al shamen
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    Nov 30th 2013, 11:40 AM

    Cheap gas is rather important in a country which suffers long and extremely harsh winters.

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    Mute Anna Taranova
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    Dec 1st 2013, 1:27 AM

    Absolutely not. He is thinking just about his own wealth and his safety, guaranteed by Russia. He is facing impeachment now, and use force to avoid this.

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    Mute Stephen Barry
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    Nov 30th 2013, 10:37 AM

    Protests, rally’s could the journal translate these words for Irish people please.

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    Mute Kris O Kay Kay
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    Nov 30th 2013, 11:40 AM

    Does the Ukraine want to join the EU or have closer cooperation? What is the reason for the protests?

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    Mute Aunty Simmonite
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    Nov 30th 2013, 12:23 PM

    You may not have heard of Mr.Barroso before but he is an unelected Portuguese Maoist who pulls more strings than our beloved Enda who actually was elected. Then we have the other muppet Van Rompuy and if he and Barroso are upset then Yanukovych must be right.

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    Mute Aunty Simmonite
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    Nov 30th 2013, 12:10 PM

    “The times for limited sovereignty are over in Europe,” Mr Barroso said

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    Mute Kenneth
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    Nov 30th 2013, 12:24 PM

    That’s how to deal with low life’s

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    Mute Vladimir Kalugin
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    Nov 30th 2013, 7:27 PM

    What the Journal doesn’t say is that the people who want Ukrainian assosiation with the Europe rather than Russia, are the absolute minority. Historicaly there is a group of people in the west, who hate Russia, whose fathers were close to poles; who later were fighting at Hitlers side during the war, and who pass this hatred to their children..Fk them..The majority of population see better future close to Russia..If you go to eastern part of Ukraine, you won’t even here Ukrainian languege, everyone speaks Russian..And lets be honest, Europe absolutely doen’t need Ukraine with it’s problems..

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    Mute Vladimir Kalugin
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    Nov 30th 2013, 7:36 PM

    And by the way, Ukraine played major part and had a good place in Russian Empire and in Soviet Union, when, if it would join Europe, it would just become colonial appendix, like baltic countries and others..

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    Mute Anna Taranova
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    Dec 1st 2013, 1:30 AM

    Vladimir, you are wrong. Majority of people in Ukraine wants to move to EU side, not Russia. You will see soon yourself this “minority”.

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    Mute Vladimir Kalugin
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    Dec 1st 2013, 11:37 AM

    I am seeing them and hearing them the last years..Fools, that don’t even understand that are being used..Tell me, what good did the “Orange” revolution brought to Ukraine, when they came to rule?
    Ukrainian government turned into circus, war criminals became heroes, and Russians from being friends, became enemies..did Ukraine prosper from it?..
    Now the same people want Eurointegration, even though countless number of economists said that Uraine’s economy will only loose from it..up to complete defolt..As i said, look at baltic countries..how it ended up for them..
    But If you are so eager to become western puppets, separate Lviv, make Klicko the president, and welcome to the sinking ship;)

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