The Government will seek the removal of some directors in banks in which the State is a shareholder if the tracker mortgage controversy is not resolved on time, Minister for Finance Paschal Donohoe has confirmed.
Mr Donohoe said taking such a step was "clearly" one of the actions open to him when he said last week he would become an activist shareholder in some banks. The State is a shareholder in AIB, Bank of Ireland and Permanent TSB.
He was speaking at the launch of a Government document on measures to tackle white collar crime, which included a proposed overhaul of the Office of the Director of Corporate Enforcement.
The document was criticised by Fianna Fáil jobs spokesman Niall Collins, however, as a "nothing new, and are just a tired rehash of previously announced plans and failed legislation".
The launch was attended by Mr Donohoe, Tánaiste and Minster for Jobs Frances Fitzgerald, Minister for Justice Charlie Flanagan and Minister for Transport Shane Ross, who was representing the Independent Alliance.
Enhance reputation
Mr Ross claimed the new approach would further enhance Ireland's reputation and help shed the previous label of the "wild west of European finance" used by the New York Times in 2005.
The Dublin Rathdown TD argued that banks had been a “thorn in the flesh” of regulators in the past, and that the Independent Alliance would support Mr Donohoe in whatever measures he took on tracker mortgages.
“If Minister Donohoe finds the banks are wanting we will fully support him as a shareholder to ensure the banks come into line,” he said. “That would include taking decisions to remove directors other issues that may arise.”
Tens of thousands of homeowners have potentially been caught up in the scandal, which saw banks wrongly refuse customers access to tracker mortgages after the crash. Some of those who were overcharged went on to struggle to meet their repayments, and some lost their homes.
Affected
Some 21,000 people have been identified as possibly being affected so far, and the Government had pushed the banks to offer compensation, or tell those whose cases are in dispute if they will be entitled to it, by Christmas.
Mr Donohoe last week said about 11,000 people of the 21,000 so far identified will be reimbursed by Christmas, less than had been earlier suggested.
Some banks will not finally deal with the controversy until next year and while Mr Donohoe said he would not remove entire boards of banks who do not deal with the controversy on time, but he could seek to remove individual directors.
"There are many actions that will be open to me next year if this matter is not resolved, including pay, including the tenure of individual directors and including my role in relation to corporate resolutions and I am willing to do any or all of them if the timelines and actions that have been committed to by the banks, that have been agreed by the Central Bank are not met."