Fine Gael demand to see banks' books
Fine Gael today demanded to see the loan books of Bank of Ireland and AIB before it backs the Government’s latest recapitalisation plan.
Party leader Enda Kenny warned that taxpayers’ money must not be used to bail out reckless speculators and he reiterated calls for the pay and bonuses of bankers to be cut.
The Government is expected to announce a second multi-billion euro recapitalisation scheme for Bank of Ireland and AIB in coming days.
Mr Kenny said: “Any recapitalisation plan must get credit flowing to Irish business and guarantee that Irish taxpayers are not bailing out international financial speculators who funded reckless lending by banks.
“If this type of guarantee cannot be given then another formula for recapitalising Irish banking must be explored.”
The TD called for an urgent meeting with the Taoiseach, the governor of the Central Bank and the acting Financial Regulator “before the Government pours billions of euros of scarce taxpayers’ money in to a pit that we don’t know the depth of.”
Mr Kenny wants to know the current liquidity level in each bank and the scale of potential bad loans.
“This is the type of essential information that Fine Gael will need to have before backing the Government’s bank recapitalisation plan,” he added.
The Taoiseach said yesterday that the recapitalisation plan with Bank of Ireland and AIB will be finalised in coming days.
It will stimulate banking activity and revitalise the economy, he added.
Measures to protect homeowners who have difficulties meeting their mortgage repayments are also being considered, according to the Taoiseach.
Fine Gael claimed the rescue of Irish banking should not be led by the same management teams that brought the banking system to the edge of collapse.
Mr Kenny added: “If we cannot guarantee that Irish taxpayers are not simply bailing out reckless professional investors then other means of recapitalising Irish banks must be considered.”
