State should consider legal action against bank guarantee advice frim – Mulvihill

Irish people took on the burden of bank debt when the Irish government guaranteed the banks.

The government, under Fianna Fail, paid one of the world’s largest financial advisory companies, Merrill Lynch, E7 million for a report containing advice at that crucial time, Cllr John Mulvihill said.

“I believe the Irish state has a right to question the nature of that advice. I believe our state lawyers have a strong case to sue Merrill Lynch for recommending the bank guarantee, when they were aware of the contents of a damning internal report on the state of Irish banks,” he said.

“The advice from these advisers went against the best interests of the Irish people. The bankers are making a killing on the backs of the Irish taxpayers, Cllr Mulvihill said.

The advice that lead to the banking guarantee has crippled this state, making Irish taxpayers responsible for private banking debts. The motives behind a costly report by carried by Merrill Lynch (now taken over by Bank of America) need to be questioned, according to Cllr Mulvihill.

“I believe those that advised a blanket bank guarantee for this state have a lot to answer for. Our own state lawyers need to address the nature of this advice and look at taking a case against these advisers, for the sake of our own taxpayers, who will bear the brunt of the mess that’s been made of the Irish banking system by private institutions,” Cllr Mulvihill said.

“Someone needs to take action for people of this country, who face crippling hardships now to pay for the reckless lending between private banking institutions. It is time we took a stand against this secret veil that shrouds the banking system,” Cllr Mulvihill said.