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AIB’s managing director of retail banking Jim O’Keeffe before a finance committee yesterday. Oireachtas TV

Over 80 people have received debt write-downs of more than €1 million from AIB since 2015

AIB denied having a ‘special’ debt write-down policy for high-profile people.

OVER 80 PEOPLE received debt write-downs of more than €1 million from AIB since 2015.

However, AIB denied offering “special” debt write-down deals for high-profile customers, saying each loan is approached on a case-by-case basis.

It comes after RTÉ reported that former Kilkenny hurler DJ Carey secured a significant settlement with AIB in 2017 on a loan, worth more than €9.5 million.

Representatives of AIB appeared before the Oireachtas finance committee yesterday following requests from TDs that questions be answered about its debt write-down policy.

AIB’s managing director of retail banking Jim O’Keeffe told the committee they were aware of recent commentary about its approach to debt write-downs, but were unable to discuss the details of an individual’s case.

“Unfortunately, many aspects of this commentary have been incomplete and have not presented the full picture,” he added.

83 people received write-downs consisting of values of over €1million and over 90% of their total debt.

Aontú leader and member of the finance committee Peadar Tóibín said “the experience of these people is unique, they are clearly in a special category”.

He added: “They are outliers in terms of what the vast majority of people had to go through at the time. Most people in debt distress were lucky to get a term extension, a reduced repayment break for a year or two or maybe even a parking of a small proportion of the debt.”

“It’s important for AIB to indicate why this small cohort were so special. Why were they treated differently?”

Elsewhere, Sinn Féin TD Pearse Doherty said that people had been asking if the bank has a policy for the top 1% in the country that differs for the rest of the population.

“We do not,” O’Keeffe said.

“We deal with every case consistently and fairly, we have a governing set of policies that are reviewed internally, right up to the board. We have a regulator who quite correctly monitors our activity.

“I can categorically tell you, there are no special deals for special individuals coming to AIB.

“And I do apologise to our customers who have been put through torture over the past week to 10 days, where they’ve been made to feel that they have been subjected to something that doesn’t happen for a wider group.

“I can assure you, that is not the case.”

In its opening statement, the majority state-owned bank said that, excluding those who went through a bankruptcy or insolvency process, about 1,900 borrowers received a reduction of more than 90% of their loan.

The bank said that this represents just over 1% of 150,000 customer resolutions reached since 2015.

“They were subjected to the same consistent policy application, there were no special deals in that 1,900,” O’Keeffe told the committee.

When asked how many of the 1,900 loans were worth more than one million euro, or what was the total value of the write-downs, O’Keeffe said “it is not a number that we disclose today”.

He said that the 1,900 would have included loans worth over a million euro, but they were not the majority.

Questioned further on the nature of those loans, O’Keeffe said that the bank would consider disclosing more information, but there were concerns about commercial sensitivity.

“The details just on the 1,900 cases is not disclosed. In fairness, that was new information that was requested by the committee, we provided the information to give you a sense as to the scale of the write-down that was taking on in relation to the 90% plus,” he said.

“There is an element that is commercially sensitive because we have to look at what is the way that we operate our write-down policy, etc. So I need to take that away.”

He said that the total value of all write-downs between 2015 and 2021 is €3.5 billion, and was publicly available.

Labour senator Marie Sherlock said that the committee appearance was important because despite the state having a majority stake in AIB, “taxpayers have little or no transparency as to the type and scale of write-downs that you offer your customers”.

Fine Gael TD Bernard Durkan said that it should be “clearly illustrated” to the general public why debt is written off.

“I think it’s very important that the general public get to know that the rules that are being applied are the same rules for everybody and that there is no suggestion anywhere of a special deal for special people or for preferential borrowers.”

O’Keeffe said that if Durkan had examples of where the bank had not been consistent about writing down debt, that it would be “concerning”.

Responding to Fianna Fáil TD Robert Troy, O’Keeffe said that he could understand the frustration of some people who could not reach a resolution with the bank, but they have certain obligations in recovering debt.

“You’re owed a million, somebody says ‘we’ll pay you half a million, you won’t get any better than that anywhere else’,” he said.

“That is irrelevant to us, because we have to work through the financial standing of the customer. And very often we don’t get the right information shared with us.

“We don’t get the sworn statements shared with us. We don’t get the information to prove that we’re not leaving debt on the table.

“If we are not getting the full disclosure, we cannot take the risk of leaving money on the table at a later date at a committee such as this being accused of not being consistent across the board.”

Chairman of the finance committee Fianna Fail TD John McGuinness said there had been “significant disquiet” from the public about how debt write-down is approached.

“I’ve found every engagement with your bank and every other bank to be robust and very challenging, and with no certainty of any outcome, and I think that’s the way it should be.

“Because that challenges your systems. It also challenges the customer that’s in difficulty – if it were to be easier than that, then we would really be asking questions.

“So the real question is, is it fair? Is the system fair to everyone? And is the playing field level for everyone? That’s the reassurance that we were seeking from your bank today.”

He asked the bank to “allay the fears that people have expressed” since media reports of a significant debt write-down for a high-profile person.

“I think that will be hugely important not just for your bank and for other banks, but for the general consistency in quieting the significant public disquiet for people who have maybe settled with you or gone through processes and reflected ‘If I had known that, I would have approached it quite differently’.

“So I think you owe it to customers that you’ve settled with as much as you owe it to the customers that are looking for debt resolution,” he said, asking the bank to “flesh out” answers to some questions that had been asked by TDs.

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    Mute Philip Cooper
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    Sep 13th 2015, 8:19 AM

    Monty Python meets Father Ted.

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    Mute Veronika Hladová
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    Sep 13th 2015, 11:50 AM

    The inquisition it should be called

    28
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    Mute Sergeant Yates
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    Sep 13th 2015, 12:26 PM

    Or they could work harder to get report done.. even weekends and evenings (omg). Oh my goodness a deadline.. we have to meet.. whatever will we public servants do?

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    Mute Veronika Hladová
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    Sep 13th 2015, 12:33 PM

    And turn 5 million into 500,000 , very unlikely they have earned that bonus!!

    9
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    Mute mickmc
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    Sep 13th 2015, 8:24 AM

    I would suggest that the enquiry is irrelevant as it stand. As far as I’m concerned if no one going to face Jail as a direct result of the evidence heard at the enquiry it was a complete waste of time but more importantly money.

    267
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    Mute OneTrueVoice
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    Sep 13th 2015, 8:36 AM

    We knew that from the start. But the opposition thought in their wisdom that we had to have an Enquiry.

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    Mute Kerry Blake
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    Sep 13th 2015, 8:56 AM

    Actually it was Enda and his mates who wanted this enquiry but don’t let the facts again in the way……

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    Mute OneTrueVoice
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    Sep 13th 2015, 8:59 AM

    They resisted, but the clamour for the opposite benches eventually overcame them.

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    Mute Mr Phil Officer
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    Sep 13th 2015, 9:53 AM

    Unfounded whistleblower allegations costs 5,000,000 euros from the public purse, Whoever dreamed up that blag is having a good laugh at the dopey tax payers.

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    Mute Patlyndo
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    Sep 13th 2015, 11:03 AM

    Spot on OTV. Populist rubbish.

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    Mute Al Ca
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    Sep 13th 2015, 11:30 AM

    Enda and Noonan are cowards but above all they are traitors who mislead the Dáil and sold Ireland down the river.
    http://www.independent.ie/opinion/columnists/gene-kerrigan/the-night-we-were-all-mugged-for-8bn-31522660.html

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    Mute OneTrueVoice
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    Sep 13th 2015, 11:45 AM

    Al – from your article “rumours emerged about what happened. Jean Claude Trichet, President of the European Central Bank, it was said, had threatened Noonan.
    In a phone call, it was said, he threatened that an economic bomb would go off in Dublin if the Government dared force bondholders to bear the consequences of their own failed gamble.”

    So Gene Kerrigan speculates about ‘rumours emerged’ and ‘it was said’?

    No evidence, no record, no quotes from anyone … just rumours and here-say.

    In that case I heard a rumour that Gene Kerrigan just made it up, it was said.

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    Mute OneTrueVoice
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    Sep 13th 2015, 11:54 AM

    My further intrepid googling shows Noonan has admitted the quote.

    Gene Kerrigan exhonerated.

    13
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    Mute Michael Sands
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    Sep 13th 2015, 11:28 PM

    What do you expect from the same traitors???

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    Mute Paige Turners
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    Sep 13th 2015, 8:25 AM

    Let’s have a GE now…. the banking enquiry is not going to tell us anything we don’t already know. It is completely dispensable.

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    Mute LesBehan
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    Sep 13th 2015, 10:16 AM

    Can’t have an election just yet the government still have to buy it in the next budget.

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    Mute Caitríona McClean
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    Sep 13th 2015, 8:29 AM

    The entire thing is a bit of a farce. Designed to finish off FF who were left for dead after GE 2011, it back fired. Cynical lack of questioning of the Taoiseach Enda Kenny about what he knew about Anglo (Anglo tapes, evidence of other. Castlebar is not a huge place and all politics is local.) and what he did with this knowledge if anything. He was not asked these simple questions, was he? Many are sick to death of the McNulty and Fennelly type approach of the Taoiseach. Moriarty too is delayed yet somehow there is no delay going after others. We hear on radio on regular basis that those who go through court on regular basis have no fear of prison yet there is a serious charge made against public representatives based not on Garda observation on the day but it seems as a sort of after thought based on Tanaiste complaint. So no surprises at more waste of money on another failed political move. Irish Water is testimony to fact Kenny will throw good money after bad while thousands are homeless! Makes me sick!

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    Mute OneTrueVoice
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    Sep 13th 2015, 8:34 AM

    FG knew the Banking Enquiry would be the waste of time that it is, delaying proper justice in a court of law and resisted it.

    However Sinn Fein were the ones screaming for it. Totally ignorant that it would just be doing the guilty a favour by buying them a lot of time while TDs grandstanded and looked like they were somehow ‘doing something’.

    Cancel the Enquiry now and get on with the court cases.

    29
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    Mute ciaran
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    Sep 13th 2015, 8:44 AM

    otv, how long is it now since the crash? we are only concluding the inquiry, ask yourself who set the terms of reference that would cause the delays?
    ps. I do not remember Kenny or noonan admitting when they had their moment in the sun at the inquiry that triochet rang to ensure the non guaranteed bondholders were not burned, but I suppose they were never asked

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    Mute OneTrueVoice
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    Sep 13th 2015, 8:52 AM

    unfortunately they had to tell the truth Ciaran, not fulfill your desired narrative.

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    Mute ciaran
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    Sep 13th 2015, 9:39 AM

    telling the truth? I do not remember Kenny admitting knowing about a phone call from the ecb
    noonan admits in sep 2015 only after he is asked specifically ie no wriggle room, what happened to land Ireland inc with such odious debt’s on his watch
    the inquiry was supposed to dove tail into the elections with bad pr for ff arising from it, all I see is fg hiding the truth until the last minute. when the time comes to cover themselves in glory, it turns out they are worse then ff as they had time to sort out the mess, they knew the vast amount of monies involved yet did nothing to help the situation except make private debt soverign debt

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    Mute ciaran
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    Sep 13th 2015, 8:28 AM

    Nobody cares as it was a political dance show, however the real nugget of info we found out is just what a snivelling little yellow bellied junior school teachers (sorry) noonan and Kenny really are, they knew all along we were being mugged as a nation, they let it happen rather and said nothing rather than acting in the nations interest and doing something about it. seismic shift ?? in their bowls more like

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    Mute The Viking
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    Sep 13th 2015, 8:27 AM

    Its great how our goverment are so good at dodging justice that should be handed down to them.. More wastage of our taxes again by the looks of it…

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    Mute Gus Sheridan
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    Sep 13th 2015, 8:34 AM

    The present cabinet should all be arrested and charged with derelection of duty towards the nation.

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    Mute Alan O'connor
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    Sep 13th 2015, 8:44 AM

    Even though there’s no such thing other than in the mind of the bewildered?

    And they’re up early today!

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    Mute LesBehan
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    Sep 13th 2015, 10:14 AM

    “Even though there’s no such thing other than in the mind of the bewildered?”

    You like the way you said you knew the “mind of ALL Dubliners” Alan. Get off the stage you prat!

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    Mute Al Ca
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    Sep 13th 2015, 9:39 AM

    This should have been an investigation by the Garda Fraud Squad and not an Inquiry by experts in pothole filling.
    Inquiries like this one are always rolled out in an effort to delay and run down the clock on white collar crime and to cover inept political muppets.

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    Mute Mr Phil Officer
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    Sep 13th 2015, 10:04 AM

    And like all the other enquiries and tribunals, the outcome won’t be acted upon. The best information that can be garnered from this now would be the identity of the anonymous whistleblower who made unfounded allegations that cost the tax payers 5,000,000 euros, they used this enquiry process to blag that money while the going was good, they should be held accountable.

    23
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    Mute Shayno O'Donnchadha
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    Sep 13th 2015, 9:11 AM

    is there any conversation, ever, with Enda Kenny that isn’t at odds with the other party’s version of events. Under sworn evidence or not. how can we knowingly vote to have such a person run our country and expect transparency. (another thing he promised us). Or is he denying that now also. You get what you deserve I suppose. #foolmeonce….

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    Mute Kerry Blake
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    Sep 13th 2015, 9:46 AM

    Enda’s mutterings being contacted by someone else – again. There’s a pattern beginning to appear with him…..

    25
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    Mute Kerry Blake
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    Sep 13th 2015, 9:47 AM

    *contradict

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    Mute OneTrueVoice
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    Sep 13th 2015, 8:31 AM

    The Banking Enquiry was always going to be a waste of time.

    If anything it has served the potentially guilty very well by further delaying the court cases against them while the totally unqualified TDs continue to ask their inane questions and drag the whole thing on and on and on, to the pleasure of hearing their own voice.

    Cancel the Enquiry and let the court cases move forward immediately.

    25
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    Mute Padraig Nolan
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    Sep 13th 2015, 10:21 AM

    Biggest waste of time and money in the history of the state.

    7 years on and not one senior figure from the Banking Sector, Government or Financial Regulation has had to account for the collapse of the Country’s Economy.

    This enquiry was never anything other than a publicity stunt for the FG/Lab to finally bury FF.

    21
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    Mute Paul Roche
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    Sep 13th 2015, 11:39 AM

    Coercion also renders contracts void.
    What the inquiry has disclosed is that Brian Lenihan was coerced.
    We should be looking at the legality of the consequences of this instead of trying to justify and unlawful transfer of debt to the sovereign state.

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    Mute Adrian
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    Sep 13th 2015, 11:52 AM

    This is a pure joke. Will all the pac politicians hand back the fees they earned so to recoup some of the 5 million plus wasted on this shambles. They should be made do so.

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    Mute Robert Treston
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    Sep 13th 2015, 12:21 PM

    what was it about anyways another enquiry which leads to f##king nothing , #tag Do the Crime never Do The Time If It’s White Collar Crime

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    Mute Donal Carey
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    Sep 13th 2015, 11:20 AM

    It should be made into a comedy should get the money back in no time, a total waste of time.The TDS trying to ask questions and Chairman telling them you can’t ask that its breaching something or other .They should put all the inquiries together and run a comedy show it would be the best selling show all over the world and would go on for years

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    Mute Gerard Collins
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    Sep 13th 2015, 10:14 AM

    am I mistaken but us this why an independent body is better?

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    Mute Noel Butler
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    Sep 13th 2015, 4:48 PM

    is it me or do you the people of Ireland think this is a load of craps.we lived true it. we know what happened the government is going to do nothing about it. maybe use it for votes in the election.?

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    Mute Rob Gleeson
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    Sep 13th 2015, 11:01 PM

    Too many “click bait” headlines on the journal….

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