Results 401-420 of 1,974 for speaker:Arthur Spring

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of IBRC: Discussion (31 Oct 2012)

Arthur Spring: As all that information is there, IBRC should be able to get to ascertain if the money was lent to begin with, and I urge the witnesses to do that.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: I welcome the witnesses. My opening comment concerns the sale of the bank. I am the fourth speaker and I welcome the fact that we are talking about the sale of the bank. It is an indication that we are incrementally moving towards the light at the end of the tunnel. How will the bank pitch towards the investors the attraction in purchasing AIB? Reference was made to a return of 10% to...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: Can Mr. Duffy elaborate on the cost of funds and how the bank will pitch that to them?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: By retail deposits.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: It is looking at 50 BPS for a margin and at another 60 BPS for administration costs. Is that the model the bank will work off?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: What about mortgages, for example?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: 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...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: The very fact the bank is engaging with investors at a time when the number of people with distressed mortgages is rising would suggest to me that it cannot give an investor a true picture unless it is talking about the margins it will implement on mortgages. Will there be some forgiveness in regard to the mortgages of people who were loaned money in the most negligent format?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: In essence, that means rather than a debt write down, there will be a margin moratorium for people. That is one way to look at it. I would like to ask Mr. Murphy about cost of funds. He expressed an interest in trying to sell the bank with a view to potentially different elements of funding for the bank coming about - wholesale deposits, etc. What could happen if we sell the bank and how...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: Will that kick into the mortgages and the cost of mortgages, especially the variables?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: If the ECB rate stays where it is at the moment, can Mr. Murphy see the cost of mortgages in this country decreasing in the short to medium term?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: What about in the medium to long term?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: That will be very disappointing for many people. I urge the witnesses, when selling the bank, to look at putting a moratorium on margin-making on the most vulnerable mortgages. There have been more than 40 bank closures and I will not be parochial and talk about Kerry.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: AIB might be what people consider to be the bank of the moment but to me it should be PIB - popped up Irish bank. The level of damage that has been done to the brand in rural areas, where it has closed branches, is incredible. It has not told people why it has had to do this. As someone with some banking experience, if one looks at some of those bank branches as stand-alone entities, they...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: Some of them were opened 150 years ago.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: Does Mr. Byrne wish to comment?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: Thank you, Mr. Byrne. I now call Deputy Joe Higgins.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: I do not mean to put Deputy Higgins under pressure and, coming from the generation to which he has referred, I could not agree with him more but we are under a little bit of time pressure so I will ask Mr. Duffy to respond.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: If I could interject, I think the negative equity situation has bigger ramifications than living with the long-term implications of disposable income being usurped. It is also a stressful situation for people with families in two-bedroom apartments. There is a human dimension to this. Unfortunately, bankers deal in numbers the whole time and they might not have as much interaction with the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Operations and Functioning of AIB: Discussion (31 Oct 2012)

Arthur Spring: I refer again to the type of lending taking place. Much of the anecdotal information indicates that car finance packages are being advanced. I am concerned about the domestic rather than the international economy. In the context of recovery we should focus on a number of particularly vital areas, namely, exports, tourism, energy, agribusiness and microenterprise. AIB's submission to the...