BoI's Murphy Says 100% Mortgage Advent Was 'Sad Day'

Wow, this is really useful information!
What was Murphy telling conferences three years ago?

Bank of Ireland management snap up shares

Looks like he’s new to the risk management job though.

Weren’t some of these contributors to the Catholic University News & Times ? :smiley:

How about the 97% mortgages that are still available for the
affordable housing scheme?

-Rd

Maybe it was the day his goldfish “Mr Bubbles” passed away?

Is this cunt so arrogant or unaware that he is describing the actions of his own bank and his colleagues, unfettered by effective regulation that fueled the problems he caused for himself and others? Increasing “affordability” drove stupid property building.

Lengthening mortgage terms, combined with descreased interest rates and the absence of the requirement for any deposit drove-up notional affordability.

Take a notional €2,000 available to meet mortgage repayments monthly. For a 20-year mortgage at interest rate of 7%, the loan amount available is of the order of €257,965. Reduce rates to 3%, increase the mortgage term to 35 years and the loan amount increases to €519,683. Larger amounts of money chasing the same commodities leads to an increase.

This fucker fueled the bubble and is now expressing some hollow and meaningless contrition.

Years Rate Loan 20 1% €434,883 25 1% €530,684 30 1% €621,814 35 1% €708,502 20 2% €395,348 25 2% €471,860 30 2% €541,097 35 2% €603,750 20 3% €360,622 25 3% €421,753 30 3% €474,379 35 3% €519,683 20 4% €330,044 25 4% €378,905 30 4% €418,922 35 4% €451,697 20 5% €303,051 25 5% €342,120 30 5% €372,563 35 5% €396,285 20 6% €279,162 25 6% €310,414 30 6% €333,583 35 6% €350,760 20 7% €257,965 25 7% €282,974 30 7% €300,615 35 7% €313,059 20 8% €239,109 25 8% €259,129 30 8% €272,567 35 8% €281,587 20 9% €222,290 25 9% €238,323 30 9% €248,564 35 9% €255,104 20 10% €207,249 25 10% €220,094 30 10% €227,902 35 10% €232,647

July 2005

timesonline.co.uk/tol/news/a … 1003209000

Do not worry. This is only revisionism. Soon you will have us believe it was all someone else’s fault.

{ when in fact anyone on a credit risk commitee in a clearing bank should have documented objections or resigned }

What’s worse is that in a few years time when banking is back on some sort of stable footing,
this guy and his ilk will again do their best to offer 100% mortgages.

The excuses will be familiar:
“This time it’s different”
“This is designed to help first time buyers”

Stage one of “Operation Salvage Career”. Come out and state the bleeding obvious
when it’s too late, in an effort to appear like you knew what was happening and
reluctantly went along with it.

Show me some bankers who had the cajones to raise these concerns when it mattered,
and I’ll listen to them.

-Rd

How much does Murphy earn per year?
Presumably his salary is somehow benchmarked to his predecessor, obviously an expert wrist manager.

Y’know the hardest part was when I got a huge bonus for all that reckless lending.

Pass me a hanky Ronan, I’m welling up here.

Tell me why I pay tax on the bonus again?

You dont old bean the bank does it for you thats why its huge.

Ahhh thats ok then, for a minute there I felt like an employee.

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