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IBRC commitment to mortgage holders is short term, legally meaningless and vague -Pearse Doherty TD

26 February, 2014 - by Pearse Doherty TD

IBRC commitment to mortgage holders is short term, legally meaningless and vague -Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has said that the commitment announced last night by IBRC to mortgage holders has been exposed as “short term, legally meaningless and vague”.

Commenting after the Special Liquidators and Department of Finance Officials were quizzed at the Finance Committee, Deputy Doherty said:

“The so-called commitment to protect mortgage holders at IBRC has today been exposed as short-term, legally meaningless and vague. In reply to questions from myself and others the Special Liquidators admitted that the commitment to respect the Code of Conduct on Mortgage Arrears is legally meaningless.

“They also confirmed that any future buyer of the loans will not even be bound by that vague commitment. Furthermore if a restructured arrangement with an IBRC customer is up for review then the new owner is free to change the terms of that agreement.

“I have already expressed serious doubt about the suitability of KPMG to oversee the liquidation of IBRC and today’s exchange has strengthened my view. KPMG were the auditors at Irish Nationwide and the Special Liquidators now claim they have independent legal advice that suing their own employer of KPMG would not be advisable. It was admitted today though that legal advice came from Mc Cann Fitzgerald- Irish Nationwide’s legal advisors. The refusal to sue the Irish Nationwide auditors, KPMG, stands in contrast to the litigation against Ernst and Young, Anglo Irish’s auditors.

“Sinn Féin opposed the rushed liquidation of IBRC and as the liquidation unfolds more and more issues are emerging that show the government fluffed the operation.

“Minister Noonan must not delay the legislation that would protect homeowners from vulture funds. Last night’s commitment has proven to be legally worthless and short-term- that is not good enough for the mortgage holders at IBRC or any other financial institution.”

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