Govt close to setting up watchdog tasked with limiting bank power on debt deals

A new watchdog, which will limit the ability of the banks to veto personal insolvency deals, is reported to be close to completion.

According to the Irish Independent, the Government will unveil the plans after the Easter break as part of efforts to ease the mortgage arrears crisis.

The watchdog will have the power to force banks to give reasons for decisions to pull out of talks with mortgage holders.

It is not clear yet whether the body will be set up within the Personal Insolvency Service or if it will be an independent body.