Capitalism shown at its very worst - Vulture funds cash in

THE decision by the more aggressive vulture funds to evict rent-compliant tenants, and the post-election, re-energised efforts of some banks to pursue mortgage debts through the courts, will exacerbate a critical housing crisis. 

That such a socially reprehensible process is justified in the pursuit of profit, of maximising returns made on an investment — made possible only by our banking collapse and vulnerability — raises the most fundamental questions about our priorities. Last December the Peter McVerry Trust estimated that there were nearly 5,500 homeless people in Ireland.

Some of the 60 families already served with notices to quit their Tyrrelstown, Dublin, homes will join that list, a list that indicts us all and our lip-service about a decent society. Up to 200 families may lose their homes because of a deal between a heavily-indebted developer and Goldman Sachs. Tenants have been given, depending on how long they have rented the property, between a month and 112 days to quit their homes. Affordable accommodation is simply not available in the area. Familes would have to pay almost €500 a week for a basic three-bedroomed house, a rent that cannot be sustained on even two moderate incomes.

This eventuality, no matter how anticipated, is shocking and will cut even deeper as vulture funds repeat that process across the country. That process has been facilitated by Nama which has almost completed the sale of €30 billion in loans and assets. The liquidators of IBRC — the cadaver of David Drumm’s Anglo Irish Bank — shed more than €20bn in loans during something very like a fire sale. Other banks — including Ulster Bank, Danske Bank, ACC, and Bank of Scotland — have each offered substantial loan books to the market. Vulture funds are the primary investors and each will, sooner or later, want their pound of flesh. This process raises yet more pressing questions around Nama. Did the agency, which was, after all, acting on behalf of taxpayers, not impose the kind of conditions that would have made these evictions impossible? The properties on offer were at such knocked-down prices that there must have been room for such considerations. This, and the persistent whiff around the North’s Eagle Project suggest that another jaunt on the inquiry merry-go-around cannot be too far away.

The prospect of losing your home even if you have paid the rent because faceless investors want to cash in their chips is more than unnerving. However, tenants are not entirely powerless and without protection. Under the Regulation of Credit Services Act 2015 — enacted precisely to deal with this eventuality — all arrangements must be made through companies that fall under the control of the Central Bank so that may offer some comfort.

While all of this is going on our two main political parties persist with their preposterous no-we-can’t foolishness. While all of this is going on we’re making the final preparations to celebrate the events of 1916. While all of this is going on the errant banks, one after another, return to profit.

We’re told we get the politicians we deserve but all of this tragically shows that we get the society we deserve too.