Brian Cowen responded as follows when challenged on the Late Late Show regarding banks sharing the pain of recovery.
We guarantee that NAMA will not be in a position where it has a deficit and if that deficit emerges we will make sure that a levy system will ensure that the money comes back from the banking system.
Brian Lenihan and the Greens have also sought to reassure taxpayers that the banks will be hit with a levy or extra taxes to make sure they take their share of the pain.
The problem with all these assurances is that they are only promises. To my knowledge there’s nothing in the NAMA legislation that will force the banks to pay their share.
We are being asked to trust politicians who, for decades, have worked very hard to protect the interests of bankers at the expense of consumers.
I don’t believe a word they say.
2 thoughts on “I don't believe a word they say”
Lets suppose for a second the banks are hit with a levy or additional taxes. Will they:
(a) Take a hit on their profits to cover the cost of the tax/levy.
(b) Pass it on to the consumer/taxpayer through increased charges/fees/interest rates.
The taxpayer will pay up either way.
even if we make a profit its _still_ a bailout for the developers/bankers/bondstraders
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