Sinn Féin - On Your Side

Financial sector insurance fund, not bailouts by taxpayer - Morgan

1 July, 2010


Speaking today after it was revealed that Anglo Irish bank, the nationalised State Bank, had incurred the greatest losses by any bank in the entire world, Sinn Féin Spokesperson on Finance Arthur Morgan has said that it was a sorry indictment of where Government priorities lie and that the biggest losers were the taxpayers. Deputy Morgan also reiterated his call for a fund for the financial sector to be developed to cover events in the future, instead of turning on taxpayers.

Deputy Morgan said:

“Fianna Fáil have nationalised the losses of their banking and developer cronies and the revelation that Anglo has incurred the greatest losses by any bank in the entire world is a sorry indictment on where the Government’s priorities lie. Anglo Irish’s loss in 2009 of €15billion was far bigger than those of giant US, Japanese and German banks and the losses incurred by the Royal Bank of Scotland were a quarter of what Anglo lost last year.

“The biggest losers from this debacle are the taxpayers; the taxpayers whose money was spent to nationalise the piggy bank of the most corrupt people in Ireland, the people whose money was pumped into recapitalising this zombie bank and those people who will be subject to harsh budget cuts again this year.

“After lavishing loans on developers, Anglo Irish was saved by the ordinary taxpayers of this State to the tune of billions of euro. This Frankenstein bank is being kept on life support by taxpayers’ money and to cope with future losses, the Government is committed to pumping over €22billion at least into the bank. The losses incurred by the bank are a slap in the face of the taxpayer who is not seeing any productive return on their investment that has selfishly been made by the Government on their behalf.

“The case for a levy or bank tax has never been more wanting as taxpayers are forced to cover the losses of the banking sector. An insurance fund for the financial sector should be developed to cover events in the future, instead of turning on taxpayers. Given the crippling ramifications of financial crises and indeed the colossal losses incurred by the defunct Anglo Irish Bank, the banking sector needs to provide insurance themselves against future crises.” ENDS

Connect with Sinn Féin