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€25 billion banking nightmare that won’t go away – Mac Lochlainn

3 August, 2016 - by Pádraig Mac Lochlainn

Sinn Féin Senator and spokesperson on the economy has reacted with disbelief to the news that both AIB and BOI have been rated among the worst capitalised banks in Europe.

Deputy Mac Lochlainn said “the ordinary working Irish family still struggling out there will find this news nothing short of disgusting”.

“Having ploughed €25bn of citizens money into both of these institutions and despite assurances that there were no further issues, the findings of the stress test by Europe are startling to say the least.

“You have to question the role of senior Government Minister’s and their understanding of the financial position of both banks on the basis of these results. Following budget 2016, Minister for Finance Michael Noonan said “the banking system has been strengthened, with domestically focused, well capitalised banks operating within a European wide Banking Union”.

Similar comments from Minister Paschal Donohue suggested that Irish banks are “well capitalised” and “well scrutinised”.

“Meanwhile, you had Fianna Fáil calling for much more credit to be advanced from current capital levels, which have now been determined as totally inadequate. It seems they want to return us back to the chaos they got us into in the not too distant past with their own style of fairytale economics.

“I am calling for engagement with the Central Bank now to ensure adequate capital holding levels are held by the Banks to ensure no more taxpayer liability in the event of future losses. The people of Ireland will not accept any further monies being invested in Banks particularly considering the houses that could be built with all this money to alleviate the housing crisis and the trolley crisis in our hospitals.”

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