Why we shouldn’t support firms sold to ‘vulture’ investors

As the recession moves on banks are trying to sell more and more properties out from under the people who they had initially supported to purchase same. Former support has now been replaced by aggressive tactics designed at best to wear people down and to break their resolve to try and continue trading.

Often the only purpose of this is to placate some bank executive that something is being done by the banks to bring the debt problem under control. It seems easier to act the bully than try and work with people when they get tired of moving the file around! These are the same bank executives who walked us into this malaise in the first instance!

My basic problem with this is that the guys working in the banks seem to have lost sight of the fact that if it wasn’t for the generosity (or as some might say the naivety) of the Government and, by extension, the people, their positions would not exist in the first instance. I read with despair the recent case of a family business being bought over by an ‘Investment’ company with the long established family owners being effectively thrown out on the street. Apparently, the purchase price was less than offered to the bank last year!! Moreover, a quick check reveals the ‘investment’ company obviously has the backing of foreign investment.

The amount of money being spent by the banks and the State on receivers, Nama, solicitors, barristers, valuers, etc, is incredible. These people have an even bigger industry now than it was during the boom when the same people were talking everything up! The whole thing amounts to a D4 bailout fund! As a nation, we need to step back and see what’s going on.

Banks still will not lend even though that was part of the ‘deal’ with Government. Access to credit, essential for any modern economy, is gone. We are being told to sell our jewellery now to pay credit card bills. In the meantime, foreign investors are picking up properties at knockdown prices, while people who have been providing jobs and revenue for the State for years are being left high and dry!

My suggestion is simple! People should not support businesses that have been sold out from under the original owners to foreign ‘vulture capitalists’.

Eoghain McCanna

Lifford

Co Donegal