The banks were outlaws in the corporate world, Mr Shane Ross (Ind) said. Strongly criticising Allied Irish Bank for over-charging customers for foreign exchange transactions, he said it was ridiculous that prosecutions could not be taken against the bank.
The House should press for powers to be given immediately to the financial services regulatory authority to prosecute the individual bankers involved.
In the meantime, banks which offended in this way should be penalised by the imposition of an increase in the bank levy.
Mr Ross said they had seen enormous increases in the salaries of executives of banks recently.
"It's only fair to point out that these salaries are puffed up by illegal profits, not just illegal profits from the foreign exchange transactions which we are talking about but illegal profits from the Isle of Man and places like that.
These guys are operating in a world which is outside the law. The banks are outlaws in the corporate world. We have got to recognise that and regulate it properly. I am seeking legislation to ensure that nothing like this ever happens again and that there are prosecutions of those who are practising this."
Mr Frank Feighan (FG) said that the Government had indirectly given the banks the green light to indulge in such offences by affording them a clean bill of health regarding offshore accounts. He agreed with the "outlaw" description. The only difference between the board of directors of AIB and Dick Turpin was that the English highwayman had worn a mask.
Mr Brian Hayes, Fine Gael leader in the House, urged that the Government expedite the passing of legislation to protect "whistle-blowers" who spoke up about wrong-doing in the organisations for which they worked.
Mr David Norris (Ind) said he wondered how many people with accounts in the main banking groups realised that their telephone conversations with their bank managers were taped.
"I certainly did not, and I would like to know if this is a standard, uniform practice."
Mr John Minihan (PD) said he had been somewhat alarmed at what he had heard about the taping of phone calls.
Mr Terry Leyden (FF) said that as RTÉ had uncovered what had happened in AIB, the bank should donate the €14 million it had wrongly obtained to the up-coming People in Need Telethon.
"The people who bleed the people should give to the people in need."
The leader of the House, Ms Mary O'Rourke, said she believed that the Government should push forward its plans to legislate to protect whistle blowers. Some drafting work had been done, but the proposed legislation was not on the priority list at present.