AIB insider reveals extent of staff mortgage meltdown

[DCon]

Story in the Indo tomorrow that AIB employees owe 2 billion in mortgages.

No breakdown of what staff though, and AIB do not know who will be taking redundancy so do not know what the level of debt that those who will go is.

And I would imagine there is at least 10 top managers/executives in the high 6 figure mortgage level. Buy to lets for this group in D4 and D6 could account for half of the 2 Billion

http://www.independent.ie/business/i...n-3045039.html

[concernedparent]

Where was The Regulator and minister for Finance when all this was happening, any crimes committed here, look at Iceland

Unfortunately I don't think that cronyism, dereliction of duty or incompetency in one's place of work are grounds for prosecution.

[Captain Con O'Sullivan]

Many members of the Irish legal profession appear to have enjoyed a career in making sure that those charges never appear on an Irish statute book...

[C. Flower]

Unfortunately I don't think that cronyism, dereliction of duty or incompetency in one's place of work are grounds for prosecution.

Grounds for promotion, more like.

[Kev Bar]

Manpower -> Anco -> FAS -> Solas -> ?

Lights out.

[morticia]

And I would imagine there is at least 10 top managers/executives in the high 6 figure mortgage level. Buy to lets for this group in D4 and D6 could account for half of the 2 Billion

I suspect that's an accurate guess. The few middle management types I know who work or used to work for AIB all have small staff mortgages and are paying them off asap. With one exception, down to serious structural issues with a house that were initially unspotted, not vast numbers of buy-to-let houses. Could happen to any of us. Not that my friends and acquaintances would approximate to a statistically significant sample size, but for those not in charge, I had heard that even during the boom, they were careful enough about what they lent to those not in the top tier and there were limits to how much people got at the discounted rate anyway.

[PaddyJoe]

It seems that the government has been told by the Troika to butt out of negotiations between the banks and the unions over redundancy terms.

THE Department of Finance has abandoned attempts to agree a universal redundancy package across our rescued banks after sections of the IMF/EU/ECB bailout team urged it to leave the final negotiations to the banks.

http://www.independent.ie/business/i...s-3047429.html

[TotalMayhem]

Goes to show you that owning 99% of a bank ain't worth SHlT.

[Dr. FIVE]

Just bumping this in light of today's news

[C. Flower]

I wonder what ever happened to that investigation by the Financial Regulator that was mentioned in the OP in 2010?

I see a figure of 1.8 billion was mentioned then. Apparently the official AIB figure now is 2 billion.

This is very serious. I predict it will be ignored until it explodes, as it inevitably will, with the shrinkage of these banks as required under the EU/IMF Programme.

[PaddyJoe]

Its no fun being employed at AIB any more. Those heartless new owners in the DOF are even cutting the special staff deposit rate.

ALLIED Irish Banks has been paying staff significantly higher interest rates for deposits compared to ordinary customers despite the bank's dependence on the State for survival.

AIB staff have been paid 5pc for their deposits during the recession while customers who hold money on deposit with the bank often earn a fraction of this.
The perk, which has not been previously made public, is due to be phased out next month, according to a letter sent to staff

http://www.independent.ie/business/i...e-3202352.html

[disability student]

Wait until mortgage impairment really hit home in these banks. Some sort of meltdown would mean more capital funding via ECB/IMF and hence more severe budget cuts and bank runs, who knows. BOI/AIB getting worse as time goes on given the high unemployment as umemployed person/s wouldn't be able to pay it all back.