Letters

Banking scandals and accountability

A toxic culture

Sat Jun 25 2022 - 00:16

Sir, – Joe Brennan’s piece about Central Bank fines on AIB over the bank’s tracker mortgage scandal (Business, June 23rd) states that “more than 41,000 borrowers were affected”. Which begs the question: how many bankers were affected? Answer: none.

The Central Bank continues with its policy of punishing the bank’s shareholders rather than its management and directors. I haven’t seen any evidence from Central Bank governor Gabriel Makhlouf and his troops indicating shareholder culpability, so why punish them?

And why has An Garda Síochána not been involved?

The Central Bank seems to be afraid of bank management and directors. Contrast their treatment with its bullying tactics in relation to any credit union chicanery the Central Bank stumbles across. The amounts involved there have been petty cash by comparison with the main banks, but credit union officers are subjected to much more heavy-handed treatment than the bandits in the main banks with their systematic illegality.

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But that’s what bullies do – lean on the weak. – Yours, etc,

BILL POWER,

Tramore,

Co Waterford.

Sir, – If I were to snatch some money from a bank and be caught, I would be arrested and charged.

If I were a senior banker and issued instructions to unlawfully take customers’ money, my employers would be fined and, apparently, no effort would be made to catch, arrest and charge me. – Yours, etc,

PETER GLENNON,

Naas,

Co Kildare.

Sir, – I see that the major banks have been fined monumental sums for mortgage overcharging, with Bank of Ireland fined ¤47 million and AIB fined €97 million. It is only 20 years since the Dirt avoidance tribunal agreed to write off a Dirt liability of €86 million for AIB in respect of 53,000 bogus non-resident accounts.

It seems that the banks in general and AIB in particular have not changed their cultures to ensure compliance with regulations and tax procedures. The only way this can be achieved is to impose personal fines on the bank executives found guilty of such poor and unacceptable management practices. – Yours, etc,

DAVID McCABE,

Dublin 18.

Sir, – Just who is going to pay for these fines? I presume it going to be the customers and the shareholders. Those actually responsible will get off scot-free. Until these people are individually held to account, nothing will change. – Yours, etc,

IAN d’ALTON,

Naas,

Co Kildare.

A chara, – The way Irish banks denied customers their right to cheaper mortgages has led to bill of ¤1 billion in refunds, compensation and fines.

Is this €1 billion bill the business cost of doing right things in a wrong way, and doing wrong things in the right way? – Is mise,

DERMOT O’ROURKE,

Lucan,

Co Dublin.

Sir, – Fining the banks is one thing, but holding senior bankers accountable is a completely different matter (News, June 24th).

The Minister for Finance is apparently bringing a proposal to Cabinet next week to make it easier in future to hold these banking staff to account for failings under their watch.

That this legislation was called for by the Central Bank four years ago only highlights the lack of urgency from the Government in dealing with this issue! – Yours, etc,

TADHG McCARTHY,

Bray,

Co Wicklow.

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