Madam, - The global banking crisis has been analysed exhaustively, but very few lessons appear to have been learned. Of course banks are greedy and capable of short-termism - it is in their nature as private-sector organisations. They keep their profits in good times, and in bad times say: "We are all in it together".
The question is why supposedly independent check and balances, such as those provided by the Financial Regulator or independent audits, failed to identify or curb their excesses.
And the reason is immediately obvious. Banks spend millions every year on "lobbying", which ultimately amounts to little more than legal bribery. They argued for a "light touch" when it came to regulation, and with their unparalleled access to decision-makers, they got it.
Similarly, auditing companies rely on their customers in the banking sector, and are smart enough not to rock the boat. Irish taxpayers are now living with the result of these cosy arrangements.
The huge salaries and negligible responsibilities of banking executives are not an accident; they are the direct result of Government policy influenced by vested interests.
How we get out of this mess is not immediately apparent, but we could avoid things getting worse by imposing an immediate ban on all corporate donations to political parties or individual politicians. Democracy demands it, and it might help focus political minds on what really counts - the Irish people. - Yours, etc,
TOM FARRELL,
Glenbeigh Park,
Dublin 7.
Madam, - The July 2007 edition of your Innovation supplement carried an article by the respected Financial Times economics commentator Martin Wolf. It was a neat encapsulation of the Zeitgeist.
Mr Wolf wrote: "Much of the institutional scenery of two decades ago - distinct national business elites, stable managerial control over companies and long-term relationships with financial institutions - is disappearing into economic history. We have, instead, the triumph of the global over the local, of the speculator over the manager and of the financier over the producer."
He went on to write that "active financial investors swiftly identify and attack pockets of inefficiency; in doing so they improve the efficiency of capital everywhere."
Last Tuesday in the Financial Times, Mr Wolf described the fall-out from this orgy of speculation as "much the most significant [crisis] since the 1930s". This wasn't a very enduring triumph. Nor does it appear to have been particularly capital-efficient.- Yours, etc,
CATHAL RABBITTE,
Bombay,
India.
Madam, - I have held a number of accounts with the Bank of Ireland for the past 20 years. I currently have four active accounts: two savings accounts, a current and a credit card account. These have always been in credit.
Recently I overlooked payment on a credit card bill totalling €29.70. Within three weeks I received a demand for payment. That demand threatened termination of my credit card account unless I paid €5 within 10 days.
In light of recent events, might I suggest that the management of Irish banks review the automated communications that are routinely mailed to their taxpaying customers.
In the meantime I will close my accounts and consider where better I can invest my money. - Yours, etc,
CAROL McGUIRE,
Clogher Road,
Crumlin,
Dublin 12.
A chara, - Faoi Acht na dTeangacha Oifigiúla 2003 is féidir leis an Aire Gaeltachta, le toiliú an Aire Rialtais eile a mbaineann an gnó sin leis, ordú a dhéanamh maidir le comhlacht príobháideach a dhéanann freastal ar an bpobal i gcointinne (nó sciar de) de bhun ceadúnais agus tabhairt ar an gcomhlacht sin seirbhísí Gaeilge agus Béarla a chur ar fail don phobal.
Ó tharla go bhfuil barántas 400bl euro tugtha ag an Stát do na bainc nach tráthúil don Rialtas mar iallach a chur orthu na seirbhísí baincéireachta ar líne agus na hinnill airgid acu a bheith dátheangach? — Is mise,
DÁITHÍ MAC CÁRTHAIGH,
An Leabharlann Dlí,
Na Ceithre Chúirt,
Baile Atha Cliath 7.