Say No To Mortgage Hikes Protest

by ptsb employee Sat Aug 08, 2009 05:28

while permanent tsb may be paying the government for being included in the bank guarantee scheme, it essentially means the irish government (and hence the taxpayer) must underwrite all the deposits and certain debt in the bank, regardless of how unwisely these were issued.

all "experienced investor loans" given out in the most recent boom years cannot possibly be paid back by a large portion of lenders. these loans were given out by permanent tsb on the basis that these investors knew what they were doing, would be turning a profit, and would easily be able to pay the loan back. now we learn that these same investors--bulk landlords and developers--have loans with ptsb and numerous other banks which they have no hope of repaying. unfinished properties which are uninhabitable, and holiday homes in leitrim... the profiteers will be written off, but the average home owner will be viciously pursued whenever the recession eases. if you have negative equity in your home and can't pay, you will be pursued through the courts for every penny the banks "lost".

it was this bank's (and essentially all the other banks' as well) stupidity that caused the over-exposure of lending and necessitated the government's offering a bank guarantee scheme. the government did this to retain a top rating and preserve the reputation of the foolish banking industry. but it also must safeguard all deposits (retail, commercial, institutional and interbank), covered bonds, senior debt and dated subordinated debt to the tune of nearly €500 billion across all institutions.

meanwhile, an borad snip wants to cut funds from everywhere, including the most vulnerable of irish society. where is the guarantee for the downtrodden? where is the punishment for a failed finance industry? if the average man had an ecb, i can assure you the rates for the banks would skyrocket. as it stands now, ptsb and the banking industry would just as soon bury us all in the grave which is rightfully theirs. enough is enough!

by real world Thu Aug 06, 2009 12:19

Where will you protest when the ECB raise rates? Time to get real - yes the banks are on taxpayer life support but that doesn't mean they have to operate at a loss! Unless of course you want the guarantee to be exercised? Irelands reputation is not being damaged by the guarantee (total lack of insight with that comment) - our reputation is damanged by the governments increasingly incapacity to manage our fiscal policy and budget accordingly. The protest should be aimed at the government because they are the only people who can put a viable solution in place - yesterdays exchequer figures are telling - cutting costs is essential and a transparent plan for NAMA is required

Fact is that interest rates are at a historic low and will only go one way - up - ECB will eventually raise their rate so people need to recognise and accept this simple fact.

by Topper Thu Aug 06, 2009 09:57

Tell us now - where would Permanent TSB be without the bank guarantee scheme? And who's paying for that? The Irish people are already paying the price for the bank guarantee as it damages Ireland's credit rating and increases the cost of borrowing. Not so "blah" now is it?

by blah Thu Aug 06, 2009 07:59

PTSB have been given no money by the Government. In fact, they pay the Government money to be part of the guarantee scheme.

by Fergal - enough is enough Wed Aug 05, 2009 20:58

To the eds this should be featurised , hopefully will be a big story by tomorrow evening. We've had interest from TV3 , examiner, 98fm and BBC nothern ireland.

by Fergal Scully - Enough is Enough Tue Aug 04, 2009 20:09

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