Results 8,961-8,980 of 27,945 for speaker:Michael McGrath
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: I am not sure why it is being haggled over. The contracts the customers had were very clear; they were entitled to be offered a tracker interest rate mortgage. We can argue about the exact rate to be applied. However, they were not offered a tracker interest rate mortgage and that is a breach of contract. Is that correct?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: There is a reason AIB is not accepting use of the word "contract".
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: The bank retrospectively manufactured a prevailing rate.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: Can Ms Dooley nail that point? Why does she keep calling it a service failure?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: Explain how the bank arrived at that prevailing rate.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: The one that was subsequently offered to these customers when the bank accepted they were impacted customers.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: The bank did not offer any new trackers from October 2008.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: What was the prevailing rate at that point when the bank withdrew trackers from the market for new customers? What was the margin at that point?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: I think it depended on the loan-to-value, LTV, ratio. It was between 1% and 1.5%.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: That was the last point in time when AIB was offering trackers at a particular rate. Over what period of years did these 6,000 customers finish on their fixed period and become entitled to be offered to be offered a tracker?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: October 2008 to December 2012.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: It was over that period of time that those customers individually were rolling off their fixed rate. Is it not the reality that throughout that period of time the only tracker rate that was in existence from AIB's perspective had a margin of between 1% and 1.5% depending on the LTV? There was no other tracker rate.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: What was the trough and what was the peak? What was the span of that margin during its entire history through AIB? When did the bank start offering trackers? We know when it ended offering them, which was on 10 October 2008.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: What was the span of the margin, roughly?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: At the peak it was about 2.5% and at a minimum it about 0.75%. The reality is this issue will work its way through the Financial Services and Pensions Ombudsman and the High Court. It would be a great shame, given all the good work that has been done in acknowledging failings and in leading the way on mortgage rates, for which Mr. Hunt has got credit, if in the end the bank has to be forced...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: It has not been costed. Equally, I assume it has not been provided for within the accounts. There is no provision for it.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: Has the bank taken legal advice on the issue?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: As far as the bank is concerned this issue is closed, is that it?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: What it has said to us is that these customers are impacted and they are now within the framework, and they can take their cases through the system, the internal appeals committee, the ombudsman and potentially to court, if required. I am sure my colleagues will pick up on this issue. I would like to deal with one other issue and I can come back in later. Many of the bank's small and...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Matters Relating to the Banking Sector: Allied Irish Banks (11 Apr 2019)
Michael McGrath: Mr. O'Keeffe might outline the options for these customers who are facing the prospect of the loss of their overdraft facilities within a two-month period. They have been contacting us and many of them are in real trouble. What are their options?