Distribute banking shares to citizens and cap bonuses

IT IS generous for Paschal Donohoe, Minister for Finance, to facilitate the purchase by AIB of Goodbody stockbrokers, for €138m, using public capital (‘Bonus move sucks State ever deeper into Irish banking’, Irish Independent, March 3, 2021). The minister also committed to Goodbody retaining its existing remuneration policies including staff bonuses as a condition of the purchase. Goodbody was in sales discussions with two separate Chinese groups and one can only wonder under what conditions these sales failed.

Was the asking price too high after due diligence?

Now that Goodbody will be wholly owned by AIB, it can only be hoped that they won’t be dealing, promoting or supporting AIB shares, as they did before the financial crash to the detriment of many pension funds.

One must question the ethicality or even the legality of a stockbroker owned by a bank dealing in the shares of that bank.

The comment that: “Obviously Mr Donohoe has his eye on the eventual exit from the State’s bank shareholdings”, his actions in this matter demonstrate an increased investment in banking, a further bailout of bankers and now stockbrokers.

It is time for Mr Donohoe to consider the citizens of this country.

Distribute the banking shares he holds to all adult citizens equally and institute a universal basic income for all, instead of wasting public capital and “throwing good money after bad”.

Hugh McDermott Dromahair, Co Leitrim