Arthur Spring (Kerry North-West Limerick, Labour) | Oireachtas source

Therein lies my concern. As we know, the mortgage crisis is escalating. I refer to the bank talking to potential investors who will purchase into a forecasted cashflow that shows profit being made on what I call "negligent lending" - lending over 30 to 40 years, at 100% to 110% LTVs and multiples of earnings that were inappropriate. What I am trying to work out is whether the bank is putting into the cashflows a margin which is shown on these loans, especially the ones given between 2002 and 2008, which will give a return on investment of potentially of 8% and 12% to investors.

I welcome the news the bank is considering investors coming into it but it must solve the problem of cost of funds and of negative equity and what I would consider a solution - a potential moratorium on profit-making on negligent lending. I raised this subject with the Minister for Finance last week and have done so on a number of occasions in regard to the sale of the bank. We have all known for more than over a year that it is going to do this but it is only a topic of debate now. What will the bank do to tell the people that they were lent money in the most negligent format, that it got it wrong and that it will strip it back in any future profits it will make and in any sale which will ensue?