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Banks needs total management overhaul – Morgan

19 May, 2010


Sinn Féin Finance Spokesperson Arthur Morgan, responding to the Bank of Ireland shareholder meeting’s call today for a new CEO said that Irish banks need a complete management overhaul and all those involved in the traditional golden circle must be removed from their positions. Deputy Morgan also expressed disappointment at the attitude of shareholders who are now seeking a date on future dividends from the bank. He said that the money due to the state had to take precedence over shareholder and bondholder demands.
 
Deputy Morgan said:
 
“Shareholders at this meeting today expressed anger at the years of outrageous lending, which ironically, many of them benefited from greatly during the chasing alpha years. They also sought a date for future dividends. I am disappointed that as usual, a small group of people believe that their financial entitlements supercede everyone else’s. There are hundreds of thousands of people out there who are out of work and have huge mortgages and are now watching as the state that should protect them, is propping up banks like Bank of Ireland. Yes, shareholders are tax payers too, but they had money to invest and they invested it badly. The state is now bailing out their investment with billions of ordinary taxpayers’ money and it is the state that is entitled to see any dividends from BoI, first and foremost.
 
“I also believe that it is not enough to replace one CEO in the banks. Several people were forced into retirement after the bank crash, but many, many more helped to run the dangerous operations that caused this crisis. They are still in employment in these banks. Sinn Fein argued strongly for nationalisation so the state could have full oversight and control of the banks. In the absence of that, at the very least we need a complete overhaul of the bank management. Ordinary employees were just doing their jobs, but boards of directors and senior management were all part of a strategy that brought this state to its knees.
 
“The state is making a huge investment in BoI and needs to start protecting its investment.”ENDS

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