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Thread: AIB staff owe the bank over 3 billion

  1. #1
    Politics.ie Member Johnnybaii's Avatar
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    Default AIB staff owe the bank over 3 billion

    Apologies if there has already been a thread on this but i can't see it. Front page of todays Irish Daily Mail (yes yes i know but i saw it when buying parking discs in the shop)

    No online link yet but it was AIB Staff owe the bank over 3 billion with staff on a salary of 35,000 having been given mortgages of over 500,000 (or 14.2 times salary)

    Sweet Jesus!!!!

    Anecdotal, i was at an engagement party just over 2 years ago and was catching up with an old friend, work/salary discussions came up and i told him i was happy to be making approx 35/40k a year but hoped for more before I and my partner married/kids etc

    He told me his (new) position with AIB paid him 90k a year but the main benefit was the access to cheap credit, he was at that time in hock for almost 850k - mainly through mortgage, car loan etc - but also through property investment saying "i saw a few houses going for chips in a development in a midlands town and had to pick them up as an investment"

    I thought he was winding me up, obviously not.

    Ps - no problem with the salary, the guy worked hard in college etc but access to that kind of credit from your employer in such a short timescale is insanity.

  2. #2
    Politics.ie Member hammer's Avatar
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    €3,000 million between 12,000 staff.

    €250,000 each.

    I would have thought it was higher.

  3. #3
    Dylan2010
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    Quote Originally Posted by hammer View Post
    3,000 million between 12,000 staff.

    250,000 each.

    I would have thought it was higher.
    what if half the staff didnt take the bait

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    Politics.ie Member Johnnybaii's Avatar
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    Quote Originally Posted by hammer View Post
    3,000 million between 12,000 staff.

    250,000 each.

    I would have thought it was higher.
    I guess I was thinking of it differently i.e. see the number of older staff who work in branches, they would surely either have mortgages paid off of near so?

    I imagine its a smaller tranche of younger staff who would have made use of the access to the cheap credit.

    From the same article "One AIB insider last night claimed that around 1,000 staff accounted astonishing 1 billion in unpaid mortgage debt"

    The articles angle was how do you force through redundancies with this kind of debt hanging over the staff.

  5. #5
    Politics.ie Member Doora's Avatar
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    According to the article, one employee earning approx € 35,000 a year has an outstanding mortgage with A.I.B. of over € 500,000. Unbelievable how this was allowed to happen. It is over 14 times salary.

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    I'm not so sure it's a bad reflection on the staff. More of a reflection on the ethos of the bank itself, the overall banking system driven by government policy on tax take etc. I fear for the ordinary bank worker. Probably facing unemployment and all that useless property around their necks. Where is their nama

  7. #7
    Dylan2010
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    Quote Originally Posted by Northtipp View Post
    I'm not so sure it's a bad reflection on the staff. More of a reflection on the ethos of the bank itself, the overall banking system driven by government policy on tax take etc. I fear for the ordinary bank worker. Probably facing unemployment and all that useless property around their necks. Where is their nama
    its called a life lesson, look on the bright side, their kids will see first hand the negative side of statist driven bubbles.

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    Politics.ie Member Johnnybaii's Avatar
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    Quote Originally Posted by Northtipp View Post
    I'm not so sure it's a bad reflection on the staff. More of a reflection on the ethos of the bank itself, the overall banking system driven by government policy on tax take etc. I fear for the ordinary bank worker. Probably facing unemployment and all that useless property around their necks. Where is their nama
    This is similar to my take on it, a lot of people were gripped by the madness (No, not all of us - but a lot).

    These bank employees would have been been subjected to the same advertising/marketing, family/societal pressures etc as ther est of us but seem to have been granted access to credit on a wildly inappropriate level.

    Absolutely incredible that bank bosses + regulators did not step in anywhere along the way.

  9. #9
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    Quote Originally Posted by Dylan2010 View Post
    its called a life lesson, look on the bright side, their kids will see first hand the negative side of statist driven bubbles.
    Yeh I know that. But if the developers get Nama to bail them out why doesnt your average Joe bloggs get the same?

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    Politics.ie Member hammer's Avatar
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    Staff were like a lot of other young married couples etc......

    They could see value in buying a home in a nice area. €500,000 would not have been unusual when you remember that 2 bed apartments got close to this figure at one stage.

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