Results 11,841-11,860 of 27,945 for speaker:Michael McGrath
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: The prevailing rate issue is the most significant outstanding issue that AIB faces as part of this tracker scandal. AIB has identified approximately 4,000 customers. Up until recent months, they were not included in the scope of AIB's tracker examination. How did AIB arrive at the compensation flat fee of €1,000?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: Did the Central Bank have to tell AIB to include this cohort of customers in the examination? AIB was not including them up to October.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: That is Mr. Byrne's interpretation.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: These 4,000 or so customers were never on a tracker but they had an entitlement to go onto a tracker rate after a fixed rate period, generally.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: Many were on a fixed rate and had an entitlement then to go onto a tracker rate. There is a clause in the contract stating "at the prevailing rate". Is the prevailing rate defined in the mortgage contract for this cohort of customers?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: Would most of these customers have had the same or a very similar contract or are there a range of different types of contracts for these customers?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: On top of that clause which entitled them to a tracker at the prevailing rate, is there not another clause in their contract that explicitly defines a tracker mortgage interest rate?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: Yes, which defines it as being the European Central Bank, ECB, rate plus the tracker margin.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: In any of them?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: So in all cases for these 4,000 customers, there is one clause that entitles them to go onto a tracker mortgage-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: -----at the prevailing rate following a period on a fixed rate or otherwise. There is another clause in their contract that defines the tracker interest loan as being the ECB plus a margin and Mr. Byrne is saying the margin is not specified in any of them.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: How did the bank calculate the prevailing rate?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: Mr. Mulhall's view is that the prevailing rate refers to the prevailing rate at the time that they became entitled to go on to a tracker. They are not entitled to go onto a tracker at the prevailing rate today.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: If the bank is so confident that it is right on this why is it paying them all €1,000?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: I have a few additional questions on the tracker issue. Taking up Deputy Doherty's suggestion, will AIB provide apro forma mortgage contract in respect of the prevailing rate issue? It would be a typical redacted contract which deals with the clauses 3.2 and 3.6, and the letter of offer with customer details redacted. If there are other variations which represent significant cohorts within...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: Give or take. The initial public offering, IPO, share price was €4.40. The share price is up by €1.22, approximately 28%, since the IPO. Is that correct?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: There were reports in the media of the Minister slapping down what Mr. Byrne suggested here at the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach. Has Mr. Byrne had a discussion with the Minister for Finance about his views on the State possibly selling more shares in AIB, either around the time of that committee meeting or subsequently?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: Has there been contact between the bank and Department on that issue?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: I will ask Mr. Byrne about loan portfolio sales to the extent that he can answer in a closed period. What are AIB's plans for the sale of further loan portfolios in the period ahead?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform, and Taoiseach: Tracker Mortgages: Allied Irish Banks (23 Jan 2018)
Michael McGrath: What is the quantum of non-performing loan, NPL, reduction that AIB is required to achieve by the end of 2019?