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Bank Resolution Bill allows for the continued bailout of banks – Reilly

19 October, 2011

Speaking on the Bank Resolution Bill in the Seanad today Sinn Féin Senator Kathryn Reilly said:

“Sinn Féin fully recognises the need for a Resolution Bill to deal with failing banks. However it is not the model being proposed by this government. The banking and credit sector continues to make profits and pay exorbitant bonuses. They must begin to set aside funds in the event of failure. They must take responsibility for their own mess.

“What is being proposed is to allow a Minister of Finance to pour more taxpayers’ money into the restructuring of the banking sector.

“It provides a potential blank cheque again for banking and credit institutions.

“How can we expect these institutions to behave responsibly if we have already assumed to pick up the cost of banking failure?

“How can we expect them to behave in the interest of savers, if we underwrite their risks and lending practises?

“The Labour party has made much of their opposition to the Bank Guarantee Scheme and yet continues to support the pouring of tax payers’ money into failed banks. Next March, just as they did this March, this Government will pump €3billion into Anglo Irish Bank and will continue to put our money into Anglo every March till 2031 at a cost of over €75billion.

“In this legislation they are creating the ability for future Ministers to do what the Labour party has objected to in the past and has failed to end in the present. They will continue to bail out the banks and the taxpayers will foot the bill.” ENDS

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