In the case of the banks, which is the dog and which is the tail? asks Gilmore

Posted on October 20, 2009 at 07:27 PM

"What exactly has changed, if anything, at the top level of our major banks in return for the taxpayers' largesse? Eamon Gilmore TD, Leader of the Labour Party asked this afternoon, during Leaders' Questions.

Eamon was referring to the NAMA legislation which proposes to put €54 billion in Government bonds to take bad loans off the banks and in return big changes would be made at the top of the banks.

He continued: "The Taoiseach talked about changes being made at the top of the banks. There is little or no evidence for them... There is little or nothing changing at the top of the banking tree. All that is happening is that the State or taxpayer is being asked time and time again to put up funds to keep the banks going. At the top of the banking tree, there is nothing significant happening."

• AIB: All 10 directors who were in place at the time of the guarantee was made are still in place.
• Bank of Ireland: 11 of the 13 directors of the Bank of Ireland who were in place at that time are still in place.
• EBS: Eight out of 11 directors are still in place.
• Irish Life and Permanent: Six out of eight are still in place.

"Which is the dog and which is the tail in the case of the banks? The banks are very quick to come with their hands out seeking assistance. We are to spend much of this week and most of next week dealing with the banks' requirements in terms of the writing down of bad debt but there seems to be no significant change at the top of the banking institutions," Eamon concluded.

Eamon's full contribution is available on the accompanying video while you can read the full exchange on the Oireachtas website.

Tagged with Finance • banks • NAMA