Bank of Ireland has made nearly €2 billion in profit. But rather than cutting mortgage interest rates, it is giving its shareholders a huge return of €1.15 billion.
This cash bonus will come by way of dividends and the buying back of shares.
The surge in profits comes mainly from the hike in interest rate charges. Bank of Ireland is following a general pattern where European banks are rewarding their rich shareholders with big handouts.
It is estimated that, collectively, they will hand out €130 billion. That is just half of what the United Nations Food and Agricultural Organisation estimates is needed each year to end world hunger.
Yet the fat cats who run the banks want to keep this wealth for themselves.
The Irish government had a chance to take Bank of Ireland into public ownership after it became bankrupt in 2008. But after they injected nearly €5 billion into it, they sold off their shares to ensure it was privatised.
Despite its name, Bank of Ireland is not owned by Irish shareholders who control just 2% of the company. 67% of the share value is owned by big American and British equity funds.
So next time the mainstream media tries to make you feel a little bit patriotic about Bank of Ireland’s ‘success’, just remember how you are being ripped off.
