Madam, Madam, - Thousands of people have seen their pensions decimated and their savings destroyed by the collapse of Irish bank shares. Some are venting their anger on the bank staff across the country, who have the unenviable task of answering for the their bosses' arrogance, incompetence and breathtaking disregard for that cornerstone of capitalism, shareholder value.
A palliative measure to assuage the victims' frustration, and bring an inkling of understanding of the chaos wrought in that other world where most of us live would be bank stocks. The 10 most senior and responsible figures from each bank would be locked in wooden frames along Dame Street, and shareholders would have a rights issue of two or three rotten eggs per thousand shares with which to pelt the perps from now until the recovery. - Yours, etc,
J.M.D. COEY,
Castleknock,
Dublin 15.
Madam, - The Minister for Finance has said that the €5.5 billion package for the banks is a good deal for the taxpayer. In reality, the return to the Exchequer is derisory given the risks involved, the cost of borrowing the funds for the package, and the fact that the proposed preference shares are neither convertible nor cumulative and have no priority over ordinary shares in the event of a liquidation.
In addition, the Government has agreed to act as funder of last resort for the two main banks if their private fund-raising is unsuccessful; and, most extraordinarily, it has offered Anglo Irish a blank cheque by agreeing "to make further capital available if required so that it remains a sound and viable institution". If this bank is sound and viable, why does it need €1.5 billion of State funding and why is its share price sinking like a stone, valuing the entire bank at a mere fraction of this support?
All this largesse comes on top of several hundred billion of guarantees which have increased interest costs for the State's own funding needs. Surely it is completely unacceptable for the very same people who created this crisis - Government ministers and bankers - to also negotiate the solution using "our" money. Where are the sanctions to ensure their reckless behaviour is not repeated and why should the taxpayer take all of the risk and none of the rewards? - Yours, etc,
BRIAN FLANAGAN,
Ardmeen Park,
Blackrock,
Co Dublin.
Madam, - My credit card statement has just arrived. At the bottom it says: "Allied Irish Banks plc is regulated by the Financial Regulator".
I feel better already. - Yours, etc,
FRANK O'NEILL,
Miltown Malbay,
Co Clare.