Results 49,261-49,280 of 49,836 for speaker:Stephen Donnelly

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: That is not applicable to the negative equity.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: Using the same example of a mortgage of €500,000 against a property that is worth €300,000, is Mr. Boucher saying the €200,000 difference between the mortgage and the asset value is not what he means by negative equity?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: I understand. Will Mr. Boucher answer the question I asked?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: I go back again to the example of an outstanding mortgage of €500,000 and a current market value of €300,000. Putting it very simply, would the bank consider the negative equity in that case to be €200,000? I ask Mr. Boucher to answer either "Yes" or "No".

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: I understand, but there seems to be a very clear difference of opinion. My understanding of negative equity is that if a person owes the bank €500,000 and his or her asset is worth €300,000, whether he or she is on the dole or earning €1 million per year, that loan has a negative equity of €200,000 attached to it.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: A potential negative equity.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: In the context of the figure of €4.3 billion provided by the bank and sticking with our example of a loan of €500,000 on a property with a market value of €300,000, am I right in saying there is a risk assessment of the ability to repay and the declared negative equity is adjusted accordingly?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: If someone-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: Going back to the example of an outstanding mortgage of €500,000 and a market value of €300,000, is there any situation where that will not be recorded as negative equity of €200,000?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: With respect, I ask Mr. Boucher to stop repeating the same sentence and engage with the question I am asking.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: Will Mr. Boucher give me an example based on a single instance?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: Will Mr. Boucher answer the question I asked him?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: Mr. Boucher is not willing to engage with reference to a single example.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: I shall try to ask the question in a different way. Of the €28 billion of outstanding mortgages in the Republic, what is the bank's estimate of the current market value against that loan book?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: Is Mr. Boucher saying the bank does not have an estimate of the asset value of its domestic mortgages?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: Mr. Boucher is stating the bank does not have an estimate of the asset value against domestic mortgages.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: The answer to my question, then, is "No".

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: Will Mr. Boucher put that in layman's terms, for the benefit of those listening at home to this discussion? Does he have an estimate of the total value of the domestic loan book?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: I am referring to the mortgage book, which is estimated at €28 billion.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Discussion with Bank of Ireland (1 Nov 2012)

Stephen Donnelly: What level of impairment has the bank put against the €28 billion?