Tuesday, 15 May 2012
Mortgage Arrears: Statements, Questions and Answers
Paschal Mooney (Fianna Fail)
I agree with the overall thrust of what has been said here today, which is that the banks have a greater responsibility in this area. There is no sympathy for the banks despite the fact that there is some difficulty.
Would the Minister of State agree that the encouragement to create a third banking force through Permanent TSB is a positive sign? Perhaps he can indicate how it will be financed. Will that bank be open, for example, to a takeover or an injection of equity from banking forces outside the country? There are a number of banks that, I understand, are already looking at Bank of Ireland and AIB - not in the current climate, but they are waiting to see how things develop in terms of recapitalisation. They are predatory banks that are looking to expand and acquire. What is the Government's view on the financing of Permanent TSB? Would it welcome an injection of outside equity in the much the same way as the American investors invested and took stock in Bank of Ireland? That may be an obvious question but I am not sure about the procedures in terms of the way it will be financed or recapitalised. If a white knight came along and said he wanted to take equity in Permanent TSB, would such an offer of investment be welcomed?