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PROTESTERS MARCHED A coffin to Permanent TSB headquarters in Dublin today to voice their opposition to the sale of mortgages to vulture funds.
PTSB, which is 75% State owned, has defended its plan to sell off a book of non-performing loans known as Project Glas.
The proposed sell-off of 18,000 properties, including 14,000 private dwelling homes, has become the subject of a political battle in the last week.
Today, the government agreed to support Fianna Fáil’s bill to regulate vulture funds.
Finance Minister Paschal Donohoe said he will work with Fianna Fáil’s finance spokesperson Michael McGrath, though he said significant redrafting of the bill will have to be carried out for it to have the “desired effects”.
In addition, the minister said he has asked the Central Bank to review their code of conduct for how financial institutions deal with those in mortgage arrears.
TD Michael Collins told TheJournal.ie that the coffin carried to the bank today represents the people who have lost their lives and the families in mortgage arrears that have been sold off to vulture funds.
Speaking to reporters today, Donohoe said he was aware of the concerns homeowners had about the possible sale of their mortgages.
Treating mortgage holders fairly
“I understand and want to recognise the worry this is causing people at the moment. I am determined as minister for finance that everybody is treated fairly and for these reasons a review of a code of conduct is appropriate,” he said.
Donohoe said the bill to regulate vulture funds “will have an effect on the regulatory environment that is there at the moment” and will have a “positive effect”.
Under the current regulations, it is only the intermediary, or middle man, that works between the mortgage holder and the vulture fund that falls under Central Bank regulations. The loan body or vulture fund itself which owns the mortgage is not regulated.
The regulatory reach of the Fianna Fáil bill will now extend to vulture funds. The minister said he is satisfied the new rules “does not constitute any interference in our banks”.
The minister told reporters today that the regulatory framework put in place in the past, when he was not a minister in the department, “was appropriate then”.
However, he pointed out that he always said he would keep the matter under review.
Having looked at the current regulations with “an open mind”, Donohoe now believes the rules should now be strengthened.
Changing the regulations
“I have reviewed it and decided a change like this will be of help,” he said.
Due to the impending sale of the PTSB loan book, McGrath said his bill should be expedited through the Dáil.
The minister said it will be “quicker” for government to amend the Fianna Fáil bill rather than government introducing their own “from scratch”.
“I am committed to move forward with this bill as quick a way as possible,” said the minister.
In relation to the review of the code of conduct, Donohoe said he has asked the Central Bank to get back to him as soon as possible on the matter.
Lending institutions such as banks and building societies are bound by the Central Bank’s code of conduct.
It was first introduced by the Central Bank under the Central Bank Act 1989 and sets out that financial institutions must adopt specific procedures when dealing with borrowers experiencing arrears and financial difficulties.
Critics such as Sinn Féin have argued that the code should be put on a statutory footing. A department source said this is not possible due to the need to amend the code on a constant basis, with at least four amendments being made to the code since 2009.
The minister said he could not indicate today if the code would be amended in the future as that is up to the Central Bank to determine. However, Donohoe said he is committed to ensuring the best regulatory environment is in place before the PTSB sale is completed.
“Every act I take has consequences, all decisions made by me as minister of finance have consequences,” said Donohoe, who said he has to strike a balance ensuring the bank’s balance sheets are healthy, while also ensuring that mortgage holders are protected.
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So what they’re saying is that the government bailed them out and they’re doing nothing with that money except for hoarding it and loaning to their buddies? What a total shocker. I never saw that coming.
Fair play to ISME for keeping this issue highlighted, many businesses are trying to keep going and even develop on cash flow knowing it is a time consuming and costly waste of time even applying for credit, business is being strangled and bled to death by government inaction on credit and high costs.
SMEs are possibly the worst exploiters of workers in Ireland. They flaunt labour laws, hide behind the likes of ISME and the SFA.
When it comes back buy a safe .
What?
No mention of the 90% of applicants told by bank staff not to bother applying for a loan?
Considering the banks were in such deep denial in 2008 it’s no wonder since the same cronies are still running the shop that they are hording cash. And whilst they continue to keep their bonuses, from the money we bailed them out with – the rest of the SME’s can sink – with us along with them. The business page of the Sunday Indo had the finest example of how the ‘enterprise challenged’ heads of BOI behave, letting a Jemie Jenkins business fold through lack of a credit line backed by letters of credit from his export customers – he had export orders worth thousands in the states for crying out loud! Just shows even when they promote enterprise week in may and dragons den they are apathetic to any economic need – other than the economy of their own pockets! – Pillar bank my ole!
Ye! forgot about that one – dead right Harry, I was one of them !
The banks are protecting themselves at the direct cost, not only to small and medium enterprises but to the whole economy. While this government waffles and dithers about bank interventions, SMEs are being terrorised and ultimately shut down by discredited bailed-out bankers, arrogant at top level and ignorant at branch level. With 96% of business owners of the opinion that Government have either a negative or no impact on SME lending, this Administration must act now and install active management into the banks, representing the owners, the taxpayers, to ensure honest reporting, sustainable reform and a return to proper banking.
http://paydayloansat.com/
Get your friends together and sign a petition. Bring that petition to your local TD’s, tell them that they need to confront the banks…all of the banks in your area, that you expect that your TD will write to the local banking institutions informing them that all of the signatories will take their money out of the bank, close their accounts and refuse to do business with them until they begin to loan to the SME sector again. You get 10 or 15 TD’s involved with that (and many TD’s would be delighted of the photo opportunity and to be seen on the side of the little guy) get some air time and a little public anger going and the threat that deposits might suddenly en masse start walking out the door…watch the little piggies squeal then!!
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