Results 23,101-23,120 of 27,945 for speaker:Michael McGrath

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

Michael McGrath: Yes, but approximately 200 split mortgages were arranged.

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

Michael McGrath: Picking up on the theme explored by the Chairman, even though the Bank of Ireland split mortgage product is the least attractive across the system, Bank of Ireland seems to be doing the majority of split mortgage transactions. I suggest that the Bank of Ireland split mortgage is not really a split mortgage in the sense that it is another form of paying interest plus some capital, because it...

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

Michael McGrath: I would urge Bank of Ireland to review that product. In order to be fair to customers who are already in arrears or financial distress, if the bank is going to offer a split mortgage, it would be far more sustainable for the customers if interest did not accrue on the warehoused portion of the debt. I have dealt with individual cases where, when the interest on the warehoused portion is...

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

Michael McGrath: I will move on to the issue of strategic default, an issue that was not addressed in the presentation and on which no comment has been made by the bank. Other CEOs have commented that in their view up to 20% of the mortgage arrears book is accounted for by those who choose not to pay their mortgage for one reason or another. Is that Bank of Ireland's experience?

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

Michael McGrath: Overall, the bank is making progress when we look at the usual banking metrics of loan to deposit ratio and funding mix, etc. One concern I still have is whether Bank of Ireland and the other banks are fully facing up to the losses they are carrying on the mortgage book and the SME book. I have examined Bank of Ireland's impairment provisions in its accounts and in the presentation, which...

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

Michael McGrath: I welcome Mr. Boucher and his colleagues from Bank of Ireland. For the second day in a row, we have had a series of numbers thrown at us during the course of a meeting. As I stated yesterday, it is incredibly difficult for members to process this data, put it in context and frame appropriate questions. The information should have been provided in advance of the meeting. I acknowledge the...

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

Michael McGrath: I understand. I am seeking to clarify the issue and have Mr. Boucher confirm that we are not in a position to do an analysis of the offers made in quarter two of this year, whereas we are in a position to do an analysis of the forbearance arrangements and otherwise that have been agreed in respect of Bank of Ireland's arrears book as of the end of June. The relevant information is provided...

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

Michael McGrath: My general point is that this highlights how flawed this process has been from the beginning. Yesterday, one of the pillar banks informed the joint committee that issuing 6,000 letters telling its customers to engage or it would go down the road of legal action constitutes a sustainable solution to their mortgage difficulties. Today, the second pillar bank informs us that it does not...

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

Michael McGrath: Yes, that is clarified. The letters Mr. Boucher describes are much different from the 6,000 letters to which Allied Irish Banks referred yesterday.

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

Michael McGrath: I am not asking Mr. Boucher to comment but making an observation. In terms of analysing Bank of Ireland's treatment of arrears cases, the middle two columns of the table on page 15 provide a breakdown of 3,603 accounts which are in arrears of 90 days or more and the arrangements that are in place in respect of these accounts. That is the information that we can analyse.

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

Michael McGrath: Generally speaking, if I were to characterise the data, they show typical forbearance measures, namely, interest only repayments, reduced payments, term extensions and the capitalisation of arrears. There are also 264 accounts in the category of "Other". How many of this latter category are split mortgages for owner-occupiers? Mr. Mason indicated the overall figure was 226.

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

Michael McGrath: Spilt mortgages account for as many as 200 of the 264 accounts in this category, with the balance made up of a combination of the other measures.

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

Michael McGrath: Chairman, if possible, could we strip out quarter two as an entity in itself? That is what we would like to do. Is that possible?

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

Michael McGrath: My point is that for the purposes of making the analysis as meaningful as possible, the bank must report to the Central Bank in respect of quarter two, the period to the end of June. Perhaps we might have details of that report, the number of offers made in quarter two and a breakdown of these offers. That is essentially what we are seeking.

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

Michael McGrath: Is that from the figure of 11,774?

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

Michael McGrath: I know others will take up Mr. Duffy on that issue. Last year, Mr. Duffy indicated that he was going to write to former executives of the bank who are now retired, those who served between 2005 and 2008. Over 30 letters were issued asking them whether they would consider forgoing some of their pension voluntarily. I do not expect any names but I believe it is in the public interest that...

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

Michael McGrath: Is Mr. Duffy prepared to give a response, even on an aggregate basis?

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

Michael McGrath: This puts the issue of a sustainable solution and the definition of it into context. AIB's interpretation or application of that in quarter 2 was, in six out of ten cases, a threatening legal letter. That was its sustainable solution.

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

Michael McGrath: I have only a couple of minutes left and will move on to the issue of strategic defaulters. Mr. Duffy has given his justification or rationale for his comment that these could be in the region of 20%. His comment that one quarter of holders of buy-to-let accounts made no repayments whatsoever in the past six months begs a question. Why is it that up to recently AIB had only appointed a...

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

Michael McGrath: How many?