Fianna Fáil: Block reappointments to banks if no redress
The party will today table a Dáil private members motion calling for greater powers for the Central Bank to sanction banks who “stole people’s money”, as described by party leader Micheál Martin. The Government has agreed not to block the motion, saying it supports the objective and thrust in principle.
Yesterday, the party’s finance spokesman, Michael McGrath, described the actions and behaviour of the banks as “reprehensible”. The motion calls for “a thorough investigation” as to how the tracker scandal occurred and a probe into whether there was any “co-ordination, formal or informal, across the industry”. Any offences must be reported to Revenue and gardaí, among others, it says, and extra powers should be given to the Central Bank.
The Government should also vote against the reappointment of directors to the banks and introduce legislation to stop repossession proceedings on tracker- related mortgages until all affected customers are redressed, states the motion.
“We believe that what we need is a step change,” said Mr McGrath. “The banks’ behaviour has been reprehensible ... the banks who are still in control of this process. Our view, there is no reason why the remaining 10,000 customers should get their money back before Christmas.
“The intervention of Mr Donohoe will be measured by the outcome. People affected should get justice.”
Mr McGrath also called for a halt to repossessions of homes involving mortgages subject to the current examination.
The Cork South Central TD said he had no evidence there was any collusion between the banks, but did say the fact that 11 financial institutions all made the same mistakes in taking trackers off customers was “more than a coincidence”.
Systems and processes can be discussed but, at the end of the day, people made decisions, he said.
“We support any legislation which would give the Central Bank more powers,” said Mr McGrath. “The Government should vote against the reappointment of any bank director in institutions who are still refusing to live up to their duty.”
The cost of dealing with the scandal could top €1bn, Mr McGrath said, adding that those affected by the scandal must be given clarity on a timeline when they will receive what they are owed and, furthermore, those who facilitated the scandal must be held to account.
“As part of the current examination, around 13,000 customers have been affected by the banks’ failure to honour the customers’ contractual rights,” said Mr McGrath. “To add insult to injury, many banks have failed to hand back the money owed to their customers. Some are out of pocket to the tune of tens of thousands of euro, leaving many in arrears on their mortgage.
“In some instances, families have had their homes repossessed as a direct result of the banks’ actions. We have outlined a number of measures in our motion that the banks, the Central Bank and the Government should implement to help bring about a speedy conclusion.”
One in four customers to date have received redress and compensation.
