Interest rates

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Sunny

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Sorry but this is ridiculous. I thought one of the key government objectives was to run commercial banks free of political interference.
Worst part is that gullible taxpayers think they have won.

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Well done Brendan on prime time. It was a lesson on how to make a so called minister look like an idiot! Quinn showed exactly the incompetence of politicians that continues to amaze me.
 
The incessant bleating by the "wheres the NAMA for the little people" brigade has finally paid off.

Its time those holding BOI shares demanded a "NAMA for the BOI shareholders"

Anyone who took out a jumbo mortgage in the tiger years usually got a tracker by default,I held some old type variable mortgages but changed them over to trackers as I saw they made financial sense and indeed advised family to do the same...one-a brother in law didn't bother due to laziness and about a year ago was heard to moan to all and sundry about how the banks were only short of putting a saddle on him...

Sorry folks I have no sympathy for him or indeed anyone else who is that casual or inept about the biggest loan they will ever take out...the reality though is I am in a position where not only have I had to bail out the banks but as a shareholder in BOI I will have delay any hope of a return to profitability in order to appease the bleating of those who frankly should not be allowed anything more than a weekly pocket money allowance.
 
Whats the legal position regards variable rates?

My understanding is that a bank is required to pass on rate cuts to trackers but that variable mortgages are not based purely on the ECB rate.
 
Does anyone have the figures to show how much is this subsidy of AIB mortgage holders going to cost the state?
 
Sunny, how do they come up with that figure?
The difference between the cost what they lend the money at and the cost they borrow from other banks at?
 
Shawady said:
Sunny, how do they come up with that figure?
The difference between the cost what they lend the money at and the cost they borrow from other banks at?
Click to expand...

I presume it's the income they are not getting.
So, the tax payer is bailing out AIB mortgage holders to the tune of 20-30 million per year.

AIB mortgage holders; say "thank you".
 
This was one of the big fears when it was clear the State would end up with majority shares in the banks. The Governments job is to ensure that the banks recover to maximise the value for the taxpayer. It is not to use them as some sort of political football to score cheap popularity points. The banks need to be run as purely commercial businesses. They should be free to reprice their loan book, increase charges, not lend money etc etc. This doesnt mean that they are given free reign to take consumers for a ride but we have decent regulator now so let him do his job. AIB didn't pass on the last two ECB rate increases and I don't remember politicians running out applauding them.
 
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