Letter to RTEs Pat Kenny show.

Dear Pat

I am amazed that the house of cards fell so quickly in the end. In March / April 1999 I was interviewed live by you regarding my questions about the so called and much hyped CELTIC TIGER. I made the point that only a small number of people were making lots of money and the rest of us were being subjected to higher living costs as a result of the increasing cost of property / homes.

The issue of dodgy P60s being accepted by the banks and personally I won’t call them institutions as I regard them as shysters and crooks as has been proved by the DIRT investigations etc. AS far as I know not one bank official at any level was ever charged with any criminal activity and here we are again with a financial crisis caused by the operation and greed by banks. It’s quite clear to me that we need much stronger regulation of banks. To assume honesty from these businesses is the greatest mistake that will ever be made, regulation should assume dishonesty and regulate and police accordingly.

Ordinary workers in many industries have operated their businesses properly and honestly, and it must sicken honest honourable business people in every industry outside the financial industry, that the banks can manipulate the government in the way they have over the last few days.

Businesses go to the wall every day we know that, however it appears that’s only for little companies outside the world of high finance, everyone else can sing for their supper and whistle Dixie on their way to the dole.

I accept the need maintain the integrity of the banking world however the real world of Irish finance should always have been protected by the regulator, not only for the banks, but more importantly for those companies that genuinely create wealth for this state. Banks should from now on pay for a bond to insure depositors both corporate and personal. This would give absolute guarantees to those companies that have substantial monies to invest and also to individuals.

There is much talk about the banks paying for the future guarantees from the state. Let’s be clear about this. If there is to be payments for this it will come from lower interest rates paid to investors and higher rates charged to borrowers, it will not come out of the share holders pockets. It will come from all of us that have to use the services of these badly managed companies, unless the future regulation of this industry acts in favour of the consumer again both corporate and personal.

Anyway I hate to say I told you so, but I did.

Regards

John Fitzpatrick