May 2012        

More financial trickery to cost the taxpayer


The Troika recently gave the green light to Permanent TSB to plan its restructuring as an independent entity. For months, speculation had loomed that the bank would be merged either with AIB or Bank of Ireland to simplify the banking system and restructuring. The bank argued that to maintain competition in the sector it was essential to maintain it as an independent bank. The Troika agreed.
     This, of course, would be nonsense in a nationalised sector, where the taxpayers’ interests are of primary concern. But, as we know, the taxpayer is an afterthought: the real logic for this move is to protect bank depositors and investors and prime it for a cheap sale to a global bank in a few years.
     To achieve this, the bank must be relieved of its debts. So, the tens of billions of debt and bad loans will be moved into IBRC (formerly Anglo-Irish and Irish Nationwide), but Permanent TSB will continue to service the loans, for a fee!
     So the loans are moved to IBRC, then IBRC contracts out the management of the loans back to Permanent TSB and pays for Permanent TSB—the originator of the debt—to manage them!
     And how will IBRC pay for it? Through you and me, of course.
     It appears that taxpayers have been NAMA’d once again!
[NL]

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