Economic crisis - Banks need sharp dose of reality

IT defies credulity that banks are preparing to give bonuses to senior managers at this time of financial crisis. Especially when Ireland’s two main banks are about to receive a massive recapitalisation bailout from the Government.

Amounting to a staggering €7 billion, the funding programme will receive cabinet approval tomorrow. However, before any endorsement is given, it behoves this government to remember where the money is coming from — the pockets of beleaguered taxpayers.

There should be no question of pouring billions into bank coffers without strict conditions, including a strict veto on all bonuses and a cap on the pay of senior managers. It is not good enough for Taoiseach Brian Cowen — who, thankfully, has finally refound his voice and reasserted his leadership — to baulk because banks claim they must fill contractual arrangements and leave it at that. It is high time the banks were given a sharp dose of reality.