Madam, – Surely the choice of the name “Project Atlas” by PricewaterhouseCoopers for its study of Anglo Irish Bank’s loan book had nothing to do with either holding the world up or wondering why it fell, but rather with answering the question: where in the world did all the money go? – Yours, etc,
Madam, – Minister for Finance Brian Lenihan says he has no wish to follow Labour and “mire us all in mediocrity” (Dáil Report, February 18th). He clearly does not read your Letter columns or he would realise that many of us would view the mire of mediocrity as a great leap forward.
Your correspondents are not railing against mediocrity. They are railing against: the mire of floundering leadership; the mire of ignorance; the mire of profligate waste; the mire of “pulling strokes”; the mire of Government dithering; the mire of cronyism; the mire of cynicism and embitterment; the mire of denial and delusion, of blather and “tough decisions”; the mire of pessimism; the mire of hubris; the mire of injustice; the mire of incompetence; the mire of despondency and dejection; the mire of social unrest.
Then there is the inability to make a moral judgment, the alarming and reckless exposure to endless debt, the lack of “regulation”, the loss of trust, the fears of the vulnerable, the hopelessness of the unemployed, the lost opportunities.
Some are born mediocre, some achieve mediocrity and for some, at best, mediocrity remains just an aspiration. – Yours, etc,
Madam, – Am I missing something? Ulick McEvaddy claims that the 10 investors who were lent money by Anglo Irish Bank to buy shares in that bank, when the only security given were these same shares, are heroes!
A hero is somebody distinguished by exceptional courage. Where is the courage in this no-lose situation? The worst that could happen is that they lose the shares that cost them nothing in the first place.
Could somebody please explain? – Yours, etc,
Madam, – Part of the problem with the banking system is that it has become homogenous: all banks work off the same financial intelligence and lending policies go up and down at the same time in response to market trends and are not necessarily related to the customers the banks are dealing with. Furthermore, bank practices are often run by remote control. For example, computers have been programmed to send out electronically signed letters to customers whenever an overdraft limit is breached, even where clients may have other funds on deposit.
In times past bank managers knew their customers – their character, their reliability and their occupation or business. On the basis of this they took a calculated risk when lending to a customer. This is not the same as a gamble. Now shrewd calculation has been replaced by automation and an attitude to customers which asks: “What more can they do for the bank?”
If business confidence is to return and enterprising spirit is to be encouraged a new paradigm is required in our banking system. As part of this, banks should return to the old system of real bank managers dealing with real customers. The system of “virtual bank managers” is not working. The Minister for Finance should raise this with the banks as part of the talks on recapitalisation. – Yours, etc,
Madam, – Having read Prof Morgan Kelly’s terrifying analysis of what may be about to happen to us (Analysis, February 17th), I think he would do a great public service by setting out exactly what he regards as the “decisive and intelligent action” which he believes the Government must take in the next few weeks.
Then let the Taoiseach and the Minister for Finance explain to us exactly why they cannot or will not follow his prescription. – Yours, etc,
Madam, – Donal Casey’s excellent article “Cosy directors failed to rein in autocratic chief executives” (Opinion, February 19th) highlights the need for independent, effective, non-executive bank directors.
Surely it is also now time for governments (of whatever party) to abandon the cosy arrangement of nominating people – usually supporters of the party or parties in power – to non-executive directorships of statutory agencies. Governments should seek to identify the very best and most appropriate talent to sit on the boards of statutory agencies, whatever their political persuasion, or lack of any. This can best be achieved by publicly advertising for candidates and then appointing them through an independent process organised through an extension of the remit of the Public Appointments Service.
The Public Appointments Transparency Bill 2008, sponsored by Leo Varadkar TD, seeks to provide a measure of accountability and Oireachtas oversight into appointments to the boards of the statutory agencies and public bodies, but is still within the context of ministerial appointees. While this is a positive initial step, it does not go far enough. Governance in Ireland has been brought into such ill repute over recent months that the time has come for appointments to statutory agencies to be not only transparent but also independent. – Yours, etc,
Madam, – In his 1939 song Ballad of Pretty Boy Floyd, the legendary American singer/ songwriter Woody Guthrie wrote: “Some will rob you with a six-gun, some with a fountain pen.” I wonder what he would have made of golden circles, secret loans and contracts for difference? – Yours, etc,
Madam, – Ronan Murphy (February 20th) complains that no economic commentators predicted the collapse of house prices.
Perhaps he does not read very widely. John Fitzgerald of the ESRI, Morgan Kelly of UCD, George Lee of RTÉ – in fact pretty almost every neutral economist who was not handcuffed to either a bank, an estate agent or Fianna Fáil – has been predicting this risk since about 2000. Prof Kelly predicted it with increasing accuracy, and in particular highlighted the bank risk.
Like Cassandra in the war of Troy, such far-sighted people – or should I say those who state “the bleeding obvious” on the basis of available data – are condemned to be ignored until after the city has been destroyed.
Perhaps we should now start listening to those who did predict catastrophe. And that most certainly does not include the current Government. – Yours, etc,
Madam, – After the second World War the German economy, along with everything else, lay in ruin.
But through inspired political leadership and the equitable concept of burden-sharing – lastenausgleich – the Germans created their “economic miracle”.
A fighting spirit rests deep in the Irish psyche; and it could be kindled to see off the appalling financial woes that threaten us if only we had a bit of fair and creative governance. Instead of galvanising a willing nation towards partnership, the Government is still pampering the fat cats – some of whom caused our economic predicament and others of whom regard bread-line social welfare payments as over-generous – and letting the struggling worker hew the wood and draw the water.
We deserve better from our elected leaders. – Yours, etc,