Irish banks ‘fleecing’ clients, says report

Ulster-Lad

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Irish borrowers are being “mercilessly fleeced” as banks raise interest and other charges in order to rebuild their shattered balance sheets in the wake of the property crash, a report has found
The consumer panel of the Irish financial regulator, a government-appointed watchdog, said on Thursday many borrowers were paying more today than before the financial crisis, even if the European Central Bank kept rates at historic lows.
However, the report said borrowers on variable rate mortgages were “effectively being treated as second class citizens who are being forced to pick up a disproportionate share of the bank rescue costs”.
FT.com / Europe - Irish banks

Pretty damning report. People on variable mortgages are being forced to make up the bank losses. This is contrary to the ECB which is promoting and maintaining low interest rates as a means to get out of the recession.
 


Ulster-Lad

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To absorb those losses, banks have been told by the regulator to achieve a core tier 1 capital ratio of 8 per cent by the end of the year.
 


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