Central Bank Tracker Review

Onceagain

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139
Just read the following on the central bank website with reference to the tracker review.

"Lenders have appointed external independent third party assurers to oversee this work and to ensure that the review is being carried out in line with the Central Bank’s requirements".

It is my understanding that Bank of Ireland are using staff to carry out this review, or would anyone else have more information?
 
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rodger

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Good question

About 6 months ago the head of Aib was interviewed in the Sunday times and he said Aib were employing 300 people to do the review.
 

corktim

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163
Bank employees will do the main case work with a third party reviewing thier findings / decisions as far as I know.
 

peemac

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639
Just read the following on the central bank website with reference to the tracker review.

"Lenders have appointed external independent third party assurers to oversee this work and to ensure that the review is being carried out in line with the Central Bank’s requirements".

It is my understanding that Bank of Ireland are using staff to carry out this review, or would anyone else have more information?
Important word is "Oversee" - basically a third party is checking hat the bank is doing it as per the CB instructions, so they just review the work rather than do the work.
 
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rodger

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I was thinking about the cost to Aib to employee 300 employees
And Bernard Sheridan thinks it will take 5 years

If the salary costs say 50,000 and overheads desk, manager, lights, hr etc adds another 50,000

Then 300 times 100,000 is 30 million per year

Over 5 years that's €150 million


How can aib justify spending that?

And that's tax payers money

Just doesn't make sense

Just give everyone a tracker

At least the money goes to people who deserve it
 

peemac

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639
I always doubt hysterical headlines in newspapers backed up by zero facts.

1. I doubt if all tracker mortgages need checking - just the ones that moved to fixed and didn't move back.

2. Even if 300 were working on it, they'd still be doing other work and this would just be another project.

3. 5 years? Again a hysterical based on nothing statement by a journalist looking to puff out a non story.

The standard of journalism these days is quite poor - only the other day the indo had a headline saying aib were reducing svr to 3% - the real story was that Davys ESTIMATED that at some stage aib would reduce to 3% - Basically a total non story.
 

Sarenco

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5,499
Bernard Sheridan is quoted as saying that it could take 5 years to fully sort out conduct issues - he certainly didn't say it would take 5 years to conclude the current tracker review process.

I've no idea where the 300 employees figure comes from - it doesn't sound even remotely realistic.
 

Sarenco

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5,499
300 figure comes from the first paragraph
I appreciate that Rodger but where does the 300 figure come from - did AIB say that 300 employees have been dedicated to the review process or did the journalist just make up this number?

Padraig Kissane estimated that AIB has around 3,000 mortgages in scope - would it really take an employee 5 years to review 10 individual cases? Does that sound even remotely plausible?

This was an article agreed with the chief executive
What gives you that idea? Journalists in this country (thankfully) don't have to clear their copy with the subject of their reports in advance of publication.

Did you even read the link
Yes Rodger, I read the article - I found it wholly unconvincing. Do you take everything you read in the papers at face value?
 
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rodger

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I totally don't believe everything in the papers
It was an in depth interview with the chief executive
I read the full article.
It was planned publicity on the part of Aib.
They were laying out there stall.

The journalist didn't print anything they didn't want printed on this occasion.

Thanks for all your feedback

I agree with your opinions

I'm just connecting on what aib have made public

Effectively planning to spend 150 million on tracker issues

By the way there might be 3000 entitled in aib but they would have to review maybe 10,000
 

Sarenco

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5,499
The journalist didn't print anything they didn't want printed on this occasion.
How could you possibly know that?

Effectively planning to spend 150 million on tracker issues
Not quite. AIB has set aside €102m as a contingency to meet any redress payments that might arise following this review exercise.

By the way there might be 3000 entitled in aib but they would have to review maybe 10,000
Is there any basis or rationale for that estimate?
 
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rodger

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Maybe they will review every single mortgage issued since say 2003.
 

Sarenco

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5,499
Maybe they will review every single mortgage issued since say 2003.
Why would they do that?

In any event, AIB has written a lot more than 10,000 mortgages since 2003 - AIB currently has over 250,000 mortgage accounts on its books.
 

Onceagain

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139
Bank of Ireland are looking for a further 150 staff to work on the tracker review, with 50 already working on it.
 
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