I wonder how long before the guillotine will be brought back for bankers. In Ireland after the country gave away its sovereignty and signed up for near permanent austerity, all to bail out the banks, apparently that’s not enough for them. The bankers are now proposing bringing back serfdom for struggling home owners.

BANKS are seeking to force homeowners who are struggling to pay mortgages to live on nothing more than the basic social welfare rate, the Sunday Independent has learnt.

The suggestion by the banks that those attempting to resolve their mortgage difficulties should be made live off no more than about €188 — the equivalent of the maximum level of the jobseekers’ allowance — is said to have invoked fury among government ministers.

One of the key negotiating issues facing homeowners looking to settle their mortgage arrear problems is the percentage of their income they need for basic living expenses such as food, heat, medical expenses and basic utilities.

Banks lobbied the Government hoping to have a draconian fixed-income rate imposed on hard-working homeowners who have been left in negative equity thanks to the reckless lending policies of the same banks.

The Irish Banking Federation sought to have the financially crippling stipulation introduced as part of the Insolvency Bill — legislation the Government is hoping will offer a solution to the country’s escalating mortgage arrears crisis.

Luckily the Government told them where they could stick such a proposal.

Ministers were astonished and furious over the banks’ proposal that the amount of income those who were trying to resolve their mortgage difficulties should “equate to the basic social welfare rate”.

A government source said it was initially “taken aback” by the suggestion but “once the ‘full implications of the proposal were understood’ the banks were told in no uncertain terms the proposal would not be supported and it would be unworkable”.

Another senior figure confirmed “such a position simply is not government policy, it is in fact contrary to and does not reflect government thinking on this issue”.

It does make you wonder, if the banks are willing to go down that route, they also must realize that this would have a devastating effect on the economy. They clearly have no intention of fostering a healthy economy or lending into it again for a very long time. They appear only to be hell-bent focused on capital ratios and debt collection and more and more stories from business owners are people looking for mortgages being rejected for loans appear to back this view up.


One top-level figure noted: “What person in their sane mind would work for 40, or in many cases these days 60, hours a week for nothing more than social welfare?

“The banks cannot have thought through the implications of this stance.”

……..or have they?


Source: Irish Independent