Leeson: 60% of loans lack security

Up to 60% of bank loans given out during the boom years do not have the correct documentation to enforce the security on which they were lent, according to Nick Leeson, the former rogue trader.

Mr Leeson said Irish banks were in such a rush to lend money that they failed to correctly securitise the loans they were giving out.

“Between 40% and 60% of the secured arrears have gaps in them. All of the banks where property was used of security have shortcomings,” he said.