INSTEAD OF bleating to the Dáil that he holds no brief for the banks when they ignore Government policy, Brian Cowen would do this State a service by proving it. No matter that he was minister for finance when the banking system put this country in hock. No matter that he was bounced into providing a banking guarantee. What is important now is that banks and financiers will be challenged and slapped down if they attempt to enrich themselves at the public’s expense.
The action of Bank of Ireland chief executive Richie Boucher and his board in circumventing Government pay guidelines by arranging an early retirement package and a €1.45 million pension top-up to facilitate his early retirement was simply staggering. This behaviour, from a bank that was promoting a senior insider, showed utter contempt for Government policy and its Ministers. Worse than that, it set a standard that others were likely to follow.
The new Financial Regulator Matthew Elderfield made the point that, in order to be relevant and effective, regulations had to be backed by “a credible threat of enforcement”. For him, that “credible threat” involved sending administrators into Quinn Insurance, which sent shudders through the entire financial sector. For the Taoiseach, the response seems to involve seeking legal advice and then concluding that nothing can be done. “Supine” is a word that comes to mind.
Claims that Mr Boucher relinquished his special pension arrangements because of comments made by the Taoiseach are simply risible. No. The damage was done when Kieran Mulvey of the Labour Relations Commission condemned the arrangement and said it was likely to torpedo the Croke Park deal with public sector unions. Jack O’Connor of Siptu joined in. Coming on top of Dáil criticisms by Enda Kenny and Eamon Gilmore and growing public outrage, there was nowhere for Mr Boucher and his board to hide.
Hiding seems to be a tactic of choice for some financiers. Michael Fingleton of Irish Nationwide has gone to ground, failing to return a €1 million bonus. And while new management at the company talks of recouping the money, and vague assurances are given to the Dáil, nothing appears to be happening. In the meantime, the company reports a loss of €2.5 billion. And the European Union reclassifies some €4 billion injected into Anglo Irish Bank as Government spending, putting further pressure on public finances.
Fianna Fáil sometimes plays a dual role of government and opposition. As public anger grew, Éamon Ó Cuív, Mary O’Rourke and others objected to Mr Boucher’s financial arrangement while the Taoiseach remained mute. So, what should we make of Sean Fleming’s Dáil speech calling for Anglo Irish Bank to be wound down?
Did it anticipate yesterday’s EU decision to regard financial injections as money down the drain? Does it mean the banking guarantee and nationalisation were the wrong options? Can we expect a change in Government policy? The public has a right to know.