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EDITOR'S TAKE: Ireland's bankers should not be stigmatised

12 May 2010

Paul Clarke , Editor

Yesterday evening, during which was supposed to be a peaceful protest against the bail out of Ireland's banks by the Right to Work campaign, a breakaway group of 100 people charged the gates of Leinster House in an attempt to gain access to the grounds.

The resulting melee was nothing to write home about – around three people sustained minor injuries as gardai successfully blocked out the protesters. What's worrying, however, is whether this is representative of a rising tide of anger against Ireland's banking sector.

Unlike the causes of the global financial crisis, Ireland's banking meltdown is not difficult to understand. There were no CDOs, SIVs or other barely comprehensible derivative products, it was just the bursting of a good old-fashioned (albeit massive) property bubble.

As far as the public is concerned, the banks leant too much, too quickly and too irresponsibly as they expanded their loan books to unsustainable levels. Greed was too blame, you'll say, (just look at the now pantomime villain that is Sean Fitzpatrick) and it's us that has to pay.

Some of the figures coming out of Ireland are startling. The budget deficit now stands at 14.3% of GDP, having been revised upward from 11.8% after state aid to Anglo, and Irish public debt is now €82bn – or 65% of GDP, compared to 25% pre-crisis.

Then, there's the debate surrounding NAMA – supposedly the knight in shining armour for the country's banking sector – which has increasingly come under fire since the first tranche of loans worth €15.3bn were transferred in April.

Two-thirds of these loans are in default, as NAMA chief Brendan McDonagh revealed in April. Economist and commentator David McWilliams told Time magazine: "NAMA will bankrupt Ireland. It is forcing us to borrow from tomorrow to pay for yesterday and, in the process, destroy the opportunities of today."

As unemployment now looks likely to peak at a torrid at 13.6%, it's easy to see where people will direct their anger.

Ireland's banking sector already faces a brain drain – with redundant retail bankers switching sectors – but there's also the risk that working in the industry will become increasingly stigmatised.

After all, yesterday's protest was the latest in a series against Ireland's banks.

Last year, there were also signs that rank-and-file bank workers were being victimised by the public for the results of strategies deployed by their superiors. At the risk of sounding a little melodramatic, working in banking is becoming increasingly shameful.

Public backlash against Ireland's banking sector is inevitable, and understandable, but let's attempt to keep it civil.

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