Tracker mortgage scandal - Hit the banks where it hurts

There is only one way to deal with wayward banks — hit them where it hurts. 

That uncomfortable truth has at last been recognised by the Taoiseach who warned yesterday that he will raise taxes on banks if they don’t move faster to provide compensation for the scandalous overcharging of thousands of mortgage customers.

The problem with taxing the banks more is that they will pass on this extra cost to their customers. A more effective measure would be to facilitate class actions so that overcharged customers could sue for compensation without the worry of huge legal costs.