Fianna Fáil Finance Spokesman Michael McGrath has said “it is clear from the outcome of today’s meeting between the Government and the banks that the banks are calling the shots and will not bow to Fine Gael and Labour’s posturing on the need for last week’s ECB rate cut to be passed on to mortgage holders.”
“The Taoiseach and the Tánaiste have hopelessly failed the thousands of distressed mortgage holders across the country who are being denied the benefit of last week’s ECB interest rate cut. The Government is now seeking to distance itself from the process as if to suggest it has no hold over the banks.
“Given the unprecedented support shown to AIB and Bank of Ireland it is completely unacceptable that interest rate cuts from the ECB would not be passed on to ease the burden on mortgage holders. Worse still is the insult shown to the public by the Government which is now portraying itself as being wronged by the banks.
“The Financial Regulator has already intervened in this debate to say he may seek additional powers from Government to force the banks’ hand in this regard. I believe there would be an unnecessary delay in the Regulator seeking this additional power and it being afforded to him by the Oireachtas and Fianna Fáil is now drafting legislation to strengthen the Regulator’s powers. I believe it is appropriate to take this action now and the Regulator can act in this regard at his discretion.”