Criticism for D’Arcy on vulture funds issue
JUNIOR Finance Minister Michael D’Arcy has faced a barrage of criticism in the wake of comments made in relation to vulture funds. In an interview given in the wake of the announcement that Ulster Bank have sold 5,200 mortgages to US firm Cerberus, Minister D’Arcy stated that ‘vulture funds are easier to deal with than the banks’. Among those aiming criticism were Sinn Féin general election candidate Cllr Johnny Mythen and IFA National President Joe Healy.
Cllr Mythen said that the latest sale of Ulster Bank’s loan book shows that ‘in reality the government is complicit in the strategy’ and called for action from the Junior Minister. ‘We must remember that these are not just financial packages that are being sold on but they are the biggest financial commitment of most people’s lives,’ Cllr Mythen said. ‘Homeowners who have had their mortgages sold on have rights which must be protected and it is the Government who should ensure that this happens.’
Speaking on D’Arcy’s comments on vulture funds, Cllr Mythen asked ‘How can he do this? They are called “Vulture” Funds for a reason, and have become a cancer in Irish society. If he’s still in doubt he should ask farmers representatives in this county what they think of vulture funds. We’ve even seen stand-offs here on Co.Wexford farms because of them. They’re a cancer on our society. This is a political issueit is about the type of economy we are building, one for the people or one for the vultures.’ Similarly critical was the IFA President who described it as ‘extremely disappointing’ and said that ‘it’s a cause for concern that somebody in elected office would have such a view as people would be relying on him to sort this out.’
The tranche of non-performing loans being offloaded by Ulster Bank have a face value of €1.4bn and include 2,300 residential mortgages. The sell-off comes hot on the heels of a similar move by Permanent TSB, who have done a deal with another American fund, Lone Star. The Government is facing criticism that it is allowing banks to outsource their dirty work to companies that are not subject to the same regulatory standards.
‘It’s a cop out to say vulture funds don’t need to be regulated,’ Mr Healy said. ‘ They do, and the Government needs to make it happen. While it can be difficult to deal with banks too, they are regulated because they are interested in new business. They have to at least be mindful of how they treat their existing customers.’
The IFA also re-stated its opposition to any attempt made by vulture funds to force families to sell their farms to settle debts.
Mr Healy said that ‘faceless funds which have no understanding of farming are hellbent on destroying families while feeding on the carcass of the family farm.’
Cllr Mythen has called on Minister D’Arcy to seek the establishment of an emergency meeting of the Finance Committee to discuss the sale of loans.
Minister D’Arcy was unavailable for comment at the time of going to print.