The Central Bank responsible for the management of the financial system...

jimmmy

The role of the Central Bank is simple. The Central Bank is responsible for the management of the financial system...and should ensure the banks operate sensibly, and do not create inflation or property bubbles. Why did it stand idly by and let it happen ? Its not that the people in Dame Street, Dublin are not well paid. John Hurley, the retiring head of the Irish Central Bank, is the highest paid central banker in the world, getting € 368,703 per year. The head of the Bank of England gets € 283,564 per year, the head of the European Central bank gets € 345,252 per year and the head of the US federal reserve Bank gets € 186,600. Why no word of apology from our Central Bank, why are the people there still paid as much as ever, and those retiring get their usual fat cat government pensions....which will have to be repaid with interest by our children and grandchildren ?

gurramok

Because there is no accountability in the Irish financial system.

Just look at NAMA, only the Greens have entered a clause to clear out the banking boards to sell to their members, FF didn't propose it and that speaks volumes.

jimmmy

gurramok wrote: »

Because there is no accountability in the Irish financial system.

The shareholders of the plc's at least get to vote on such matters, though I agree the ordinary shareholder has little say....much of the votes being controlled by pension funds etc. Until the crisis, if one Irish bank got inefficient or uncompetitive, it simply got taken over / faded away. There was no government pay + pensions guarantee for anyone involved there. However, the central bank is a different matter. Its job was to prevent the disaster which happened, and which has ruined many lives. Why is everyone in the Irish Central bank still paid so much ? Why did the govt not let heads roll ? The heads of the other financial institutions merely tried to maximise profits, as demanded by their shareholders ( you, me, the pension funds etc ) as best they saw fit, within the law and within the framework provided by the public service ( the Central bank, regulator etc ).

Soldie

Interest rates are set by the ECB, so your criticism is misdirected.

gurramok

So? We know that.

Their offshoot, the Regulator was suppose to regulate and stop bad banking practices, it failed 100%.

jimmmy

gurramok wrote: »

So? We know that.

Their offshoot, the Regulator was suppose to regulate and stop bad banking practices, it failed 100%.

It sure did, and yet like the Central Banks and the govt it was not because it was not paid enough. And they still get their big pensions.

Dob74

jimmmy wrote: »

The role of the Central Bank is simple. The Central Bank is responsible for the management of the financial system...and should ensure the banks operate sensibly, and do not create inflation or property bubbles. Why did it stand idly by and let it happen ? Its not that the people in Dame Street, Dublin are not well paid. John Hurley, the retiring head of the Irish Central Bank, is the highest paid central banker in the world, getting € 368,703 per year. The head of the Bank of England gets € 283,564 per year, the head of the European Central bank gets € 345,252 per year and the head of the US federal reserve Bank gets € 186,600. Why no word of apology from our Central Bank, why are the people there still paid as much as ever, and those retiring get their usual fat cat government pensions....which will have to be repaid with interest by our children and grandchildren ?

+1
I think they are paid for the mismanagement of the economy.
Nice gig if you can get it.

lmimmfn

surely the ECB is to blame also due to lack of regulation, with low interest rates people will just borrow as much as they can get away with.

The ECB should regulate other countries banks to ensure they dont lend too much for the simple fact that if 1 country goes down in the eurozone it drags the ECB down with it.

thebman

lmimmfn wrote: »

surely the ECB is to blame also due to lack of regulation, with low interest rates people will just borrow as much as they can get away with.

The ECB should regulate other countries banks to ensure they dont lend too much for the simple fact that if 1 country goes down in the eurozone it drags the ECB down with it.

ECB doesn't regulate the Irish market. I'm sure they have recommendations and guidelines but they aren't the Irish regulator.

The low interest rates were for the benefit of the economic powerhouses of the EU, its up to Ireland to actually put in place checks and balances if the interest rates are too low for us. There are a number of ways to do that but the government threw fuel on the fire and the regulator let very dodgy practices occur.

lmimmfn

thebman wrote: »

ECB doesn't regulate the Irish market. I'm sure they have recommendations and guidelines but they aren't the Irish regulator.

The low interest rates were for the benefit of the economic powerhouses of the EU, its up to Ireland to actually put in place checks and balances if the interest rates are too low for us. There are a number of ways to do that but the government threw fuel on the fire and the regulator let very dodgy practices occur.

no, i realise all that, my point really is shouldnt they have been keeping countries in check, or shouldnt they be doing something now to ensure it doesnt happen again?

Ive really lost all faith in Ireland being able to regulate or govern itself, im a No to Lisbon but the way things are going the more Brussels takes charge the more confidence there will be in the irish market. If i were a multinational deciding which EU country in which to setup shop id avoid Ireland like the plague.

thebman

lmimmfn wrote: »

no, i realise all that, my point really is shouldnt they have been keeping countries in check, or shouldnt they be doing something now to ensure it doesnt happen again?

Ive really lost all faith in Ireland being able to regulate or govern itself, im a No to Lisbon but the way things are going the more Brussels takes charge the more confidence there will be in the irish market. If i were a multinational deciding which EU country in which to setup shop id avoid Ireland like the plague.

Well I'd agree that they should but they'd have to be given competency of it by the EU member states I imagine.

They need the power to stop it though alright. Would stop so much crap and would be a great check to have IMO.

dan_d

Our regulator did not regulate. There is zero accountability in our system (I'm very aware of this due to a close friend working as an auditor in one of our major banks, with foreign offices. Records come easily from the foreign offices. Request them from the Irish office - you don't get them, or they take months to appear. Obviously he doesn't share the details with me - he just vents every now and then about how incredibly lax our whole system is when it comes to keeping accurate records, or holding people accountable for anything)
Did you know that the new regulator is the first one in 60 years (give or take a few years) that is/was not a civil servant?
How could there not have been vested interests the whole way along?
We're incredibly stupid sometimes.