Per­ma­nent TSB hauled over coals on track­ers

Irish Examiner - - Business - Pádraig Hoare

Per­ma­nent TSB chiefs have de­nied “clos­ing ranks” and re­fus­ing to ad­mit “op­er­a­tional mis­man­age­ment” over its part in the €1bn in­dus­try-wide tracker mort­gage scan­dal.

An an­gry Pearse Do­herty clashed with Per­ma­nent TSB chief ex­ec­u­tive Jeremy Mas­d­ing at the Oireach­tas Fi­nance Com­mit­tee, where the Sin nFéinfi nance spokesman ac­cused the bank of “stonewalling” TDs and sen­a­tors and “try­ing to close down dis­cus­sion” about who was to blame when it came to the scan­dal.

Mr Mas­d­ing stren­u­ously de­nied the charge, say­ing he had never de­lib­er­ately ob­fus­cated and had al­ways tried to be forth­com­ing with the com­mit­tee.

Some 37,100 have so far been iden­ti­fied in the scan­dal, which hap­pened when mort­gage hold­ers were wrongly put onto more ex­pen­sive loans by a range of lenders. Mr Mas­d­ing said 1,979 ac­counts hold­ers had been of­fered re­dress and com­pen­sa­tion, of which 96% had ac­cepted. Some 78 have not yet ac­cepted, of which 41 had not yet been con­tacted de­spite var­i­ous ef­forts.

Mr Do­herty ac­cused Mr Mas­d­ing of re­peat­edly re­fus­ing to an­swer the com­mit­tee as to whether there was “se­ri­ous op­er­a­tional mis­man­age­ment”, de­spite telling Fi­nance of­fi­cials in pri­vate that there in­deed was.

Mr Mas­d­ing said he could not com­ment while the Cen­tral Bank was still car­ry­ing out its tracker re­view.

The bank’s se­nior of­fi­cials de­nied Mr Do­herty’s ac­cu­sa­tion that it “com­pletely ab­di­cated a duty of care” by mov­ing to sell split mort­gages to vul­ture funds de­spite ev­i­dence they were ac­tu­ally per­form­ing loans.

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