Financial Regulator's Consumer Panel slams Financial Regulator

Discussion in 'Economic issues' started by canicemcavoy, Dec 21, 2009.

  1. canicemcavoy

    canicemcavoy Frequent Poster

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    Presumably this will be covered too:

    http://www.irishtimes.com/newspaper/frontpage/2009/1221/1224261044428.html

    Of course, I imagine there's absolutely no action that could be taken against the board.
     
  2. onq

    onq Former user

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    An avalanche starts with the first pebble.

    What I hope we're not going to see is the usual pillorying of individuals.

    The current crisis was precipitated partly by the sub-prime market in the states - lending to people who couldn't pay back seems utterly unwise - and compunded by the unilateral imposition of capital ratio requirements by the B.I.S., and unelected, and so far unaccountable body of bankers.

    Granted we were going mad with unwise lending practices here, but the way to deal with this was to slow it down, not bring it to a crashing halt.

    Believe me, the Masters of the Universe who ordain such things are out there now picking up prime assets for a song and laughing all the way to their vaults.

    ONQ.
     
  3. mercman

    mercman Frequent Poster

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    But words speak. Maybe this forum with a thread of consumers experiences and dissatisfaction might be in order. Then it can be viewed by all, and the regulator might just wake up and take note of such a pathetic financial industry he is overseeing.

    In fairness to Joe Meade the Financial Services Ombudsman, he has made some kind of an effort, but I find it difficult for an office to deal with Institutions in a forthright manner, especially when the same institutions are paying to keep the office of the Ombudsman open in the first instance.

    Why doesn't Ireland take the European lead and start naming the Institutions that are acting incorrectly and in blatant violation of best practice in their actions. This in itself might wake up the Financial Services Industry in this country.
     
  4. canicemcavoy

    canicemcavoy Frequent Poster

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    Eh? Is there's one thing that Ireland Inc. consistently lacks, it's responsibility for one's action.
     
  5. Brendan Burgess

    Brendan Burgess Founder

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    It's a very hard hitting report. No punches pulled.

    It can be seen in full here

    Brendan
     
  6. mercman

    mercman Frequent Poster

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    Noted, but what are the real chances of any entity taking note and acting upon this report. IMO nobody or no Institution whether regulatory or otherwise.
     
  7. Brendan Burgess

    Brendan Burgess Founder

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    It's a great report.

    This bit surprises me:

    I just don't agree that we had a "highly visible property bubble". The majority view from economists at the time awas that there would be a soft landing. That was certainly the view of the Governor of the Central Bank which would have been the most important view as far as the Financial Regulator would have been concerned.

    I was Chairman of the Consumer Panel during the bubble. We raised a lot of issues with the Financial Regulator. We raised the impact of sub-prime mortgages on the consumer. We raised the issue of the increase in unemployment and very high house prices on mortgage arrears.

    I am open to correction, but I don't think we ever said "There is a highly visible property bubble and you should take dramatic steps to deflate it".

    I would love to be able to say "I told you so". But I didn't.
     
  8. mercman

    mercman Frequent Poster

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    The Banks themselves should have taken their own course of action to cease careless lending, and not to be told to stop. Whilst there were major errors for property lending.there were as many errors in selling other Financial Products and Investments.

    A joke is a joke so matter how often one reads it. Repetition is no joke. Just gets damn annoying after a while.
     
  9. tiger

    tiger Frequent Poster

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    Hmmm, that point is debatable.
    If you remove the "economists" that were working on behalf of banks & estate agents, then I think there were voices of concern there.
     
  10. canicemcavoy

    canicemcavoy Frequent Poster

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    Brendan, was this the majority view from economists not employed by vested interests?

    Surely a man as educated as yourself doesn't think that, for example, an economist for Sherry Fitzgerald is going to publically "yeah, it's a big bubble, houses prices are overinflated, it will all end in tears".
     
  11. canicemcavoy

    canicemcavoy Frequent Poster

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    Brendan, did anyone on the panel at all every suspect there was a property bubble?

    If not, then I'm astounded at the financial naivety of Official Ireland.
     
  12. ChristieA

    ChristieA Registered User

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    At what point do you intervene to stop a property bubble. The economy benefited hugely from the property market in the last ten years. People need to stop blaming others and take responsibility for their actions. Also, when in the last thousand years has Ireland taken a lead in anything besides Irish Dancing contests and the Eurovision?
     
  13. canicemcavoy

    canicemcavoy Frequent Poster

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    Yes, we've now taken the lead in financial bubbles. You seem to think this is a cause for celebration.

    And no, elderly people getting younger people into financial debt is not an "economy".
     
  14. Brendan Burgess

    Brendan Burgess Founder

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    This is what John Hurley said in 2007

    http://www.rte.ie/business/2007/0711/economy.html

    and

    http://www.centralbank.ie/frame_main.asp?pg=nws_article.asp?id=310&nv=nws_nav.asp
     
  15. canicemcavoy

    canicemcavoy Frequent Poster

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    Employment growth itself based on the property bubble. The phrase "pulling yourself up by your own bootstraps" comes to mind.

    And that's one guy. According to the Indo:

     
  16. tiger

    tiger Frequent Poster

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    Central Bank concern at house price growth 12 July 2006
    http://www.rte.ie/news/2006/0712/economy.html
     
  17. canicemcavoy

    canicemcavoy Frequent Poster

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    So even Hurley himself was confused.

    As for the mythical "soft landing", this has never happened anywhere in the history of housing bubbles. It had about as much scientific basis as a belief in the Second Coming or the coming of Mahdi.
     
  18. Vega

    Vega Frequent Poster

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    Totally agree. The FR was established by the government to take the blame for the next financial crisis. It worked and we all fell for it. Blaming the regulator for trying to regulate and the banks for trying to lend and developers for trying to make a profit feels somewhat naive. I would allocate more blame to the collective who bought the risky loans from the banks and paid the silly prices for the property.
     
  19. canicemcavoy

    canicemcavoy Frequent Poster

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    The clue is in the title.

    If Patrick Neary felt he didn't have the powers to regulate the banks, then he should have said something, or should have resigned in protest at not being allowed to do his job or being made a scapegoat. Instead, he stayed in the position, famously saying "Okay, that's grand, right I think that's everything" in response to being told about the illicit moving of ILP deposits and then collected a very large severance package. My sympathy for him is limited.

    I will say one thing; the report says:

    Did the panel ever warn Neary about the property bubble?
     
  20. Brendan Burgess

    Brendan Burgess Founder

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    Canice

    As you might say yourself "The clue is in what I have written"