Results 48,341-48,360 of 49,836 for speaker:Stephen Donnelly

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: Yes.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: I appreciate that. There is another 10% - this is now 90% of all restructures - which involve recapitalisation of arrears. Would Mr. Boucher agree that when that is fully paid down, the total amount paid by the household to the bank is higher than the total amount envisaged when the mortgage was taken out.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: Unless there is a write down.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: I thank Mr. Boucher. At least 90% of restructures increase the total payments from the household to the bank. In terms of sustainability and addressing the fact that households have too much debt and too many payments, at least 90% of Bank of Ireland's restructures increase the level of indebtedness of these households. For the 10% who are left, we do not have the full breakdown. On the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: Therefore, in fact, that is not a split mortgage at all. The bank is taking a mortgage and splitting it in half. Mr. Boucher is saying the customer is paying the full interest at market rate on the full capital amount as to Deputy Michael McGrath's question and there is no reduction in the amount being paid there either. Does the bank engage in voluntary surrenders?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: Sure, but the household ends up paying more money to the bank.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: Does the bank engage in voluntary surrenders?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: Does the bank pick up the difference between the amount owed and the sale value, or does the borrower pick that up?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: At AIB, for Mr. Boucher's information, it is the bank. AIB also charges 0% on the split, which makes it something that lowers the total amount to the bank. Here is my problem. Mr. Boucher stated earlier that Bank of Ireland made many mistakes and these restructured mortgages are those mistakes. We are seeing them and, obviously, there is much more. However, it turns out that in at least...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: In some cases it may cost the bank more money but in other cases it would cost you less money, for example, on interest only. If the interest the bank is getting from the borrower is less than the amount that the bank can borrow, for example, from the ECB, that interest-only loan is not costing the bank money and the bank is profiting from it. The total profit, the total net present value...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: There is one specific question to which the committee is looking for an answer. It concerns the breakdown of the 3,164 split mortgages, etc. Can we get the answer to that question before we move on?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with Bank of Ireland (4 Sep 2013)

Stephen Donnelly: What the committee is seeking is the further breakdown of these figures. With regard to the breakdown of the figure of 3,103 in the legal resolution process, what does that mean? For example, yesterday the AIB representatives said that for them it meant they sent a letter to people who had not made any payment or any contact in three years which stated yet again that they desired the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with AIB (3 Sep 2013)

Stephen Donnelly: Of the €2.5 billion made available to deal with residential mortgages, why has so little - less than €100 million - been drawn down?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with AIB (3 Sep 2013)

Stephen Donnelly: What is the total amount for which the bank has made provision to write off, meaning legally surrender any hold on?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with AIB (3 Sep 2013)

Stephen Donnelly: The bank must have an estimate or a provision in its books.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with AIB (3 Sep 2013)

Stephen Donnelly: Is that for residential mortgages or buy-to-let properties?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with AIB (3 Sep 2013)

Stephen Donnelly: Nobody is saying that but I want to be clear. Is Mr. O'Connor continuing to maintain the position that a letter demanding that the customer must engage or the bank will be forced to take legal action counts as the spirit of what the Government was trying to achieve?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with AIB (3 Sep 2013)

Stephen Donnelly: I understand the logic for why the letters have to be written. I want a "Yes" or "No" answer. Is Mr. O'Connor going to maintain to this committee that writing a letter to somebody stating that he or she must engage with the bank or it will be forced to take legal action is what the Government intended as a long-term solution? Is he going to maintain that the legal offer counts?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with AIB (3 Sep 2013)

Stephen Donnelly: I am very disappointed with that.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Overview of Financial Sector: Discussion with AIB (3 Sep 2013)

Stephen Donnelly: I thank Mr. Duffy and his management team for their time today. Before we get into the mortgage crisis figures which is the purpose of the meeting, I want to recognise that there has been significant progress in AIB. Some of the figures Mr. Duffy presented on loan-to-debt ratios and operating costs of the bank are all moving in the right direction. While there are various matters with...