Peter Mathews warns that Irish banks still need another €60bn of capitalisation, he also calls Noonan’s deal to sell Bank of Ireland stake “idiotic”.
"Deputy Peter Mathews: They gave Wilbur Ross 35% of the bank for €1 billion, when our State paid €5 billion for 15% of the bank. A junior certificate student would know that is stupid."
Bank of Ireland remains the only one of the banks which the State has guaranteed to remain outside our control as we now have a stake of 15% of the ordinary shares.
“Deputy Peter Mathews: I think the survivor bank system needs further capitalisation. In the case of Bank of Ireland it could be €10 billion minimally to get its provisions right so that it can start the sort of work that would follow from the insolvency stuff. I think that AIB will need more, too, as will Permanent TSB. The IBRC issue is being lumped onto the main national debt. In all, we are talking about a minimum of about €60 billion. However, we need people who really understand it and who can, without having to shuffle through opening statements with simultaneous translation, get it across, eye to eye with the other person.”