Ireland and the Banking Crisis
Many people have asked me, as a former Minister for Finance, about my views on the banking crisis and what would be the best way forward for Ireland. One thing is certain. We have reached a new threshold in global banking and finance. The old system, going back to 1987/89, of financial deregualtion, is broken. In my opinion it cannot be fixed or restored.
We need a fresh start and a new framework of regulation, transparancy and accountability. Banks must return to being service providers to our economy and not speculative players in their own right.
I read an excellent article written by Will Hutton in last Sunday’s Observer. Hutton is a respected Economic Journalist who has spoken at Labour Party meetings. If you change the names of the British banks to AIB, Bank of Ireland and the other Irish financial institutions, his analysis equally applies to Ireland.
Our problem remains the economic illiteracy of Fianna Fail and the sheer incompetence of Brian Cowen, Mary Coughlan and Brian Lenihan.
