Banks involved in tracker mortgage rip off have serious financial management questions to answer

October 26, 2017

Serious questions remain in relation to the financial management of banks in light of the tracker mortgage scandal, Social Democrats co-leader Catherine Murphy TD said today.

Deputy Murphy said:

“It is important to look at the tracker mortgage issue from a financial management point of view. AIB would have launched its IPO in June this year knowing about the tracker issue, and Bank of Ireland has been selling its shares.

“Both of these taxpayer bailed out banks would have known that the issue of compensation for people moved off tracker mortgages would have been coming down the line.

“I have the following questions in relation to the financial management of the banks:

  • When AIB launched its initial public offering (IPO) in June 2017, did it set aside money knowing it would owe compensation, how much this would have amounted to, how many people were affected, and was this disclosed?
  • Did Bank of Ireland report a set aside amount for compensation before selling its shares?
  • What is the role of the auditors of these two banks in relation to these issues, and what steps have they taken to date?
  • Why is the government talking about fining the banks when that money will be recouped from customers in fees and interest charges? Why can’t they look instead at the responsibility of individuals within the banks?
  • What action is the ODCE taking in relation to possible breaches of company duties and guidelines by the banks?


26 October 2017