DECEMBER 2014 SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk THE IRISH BANKERS’ CLUB CLUB OPENING HOURS: Tuesday-Saturday: 4.30pm until late. IBOA HOUSE, STEPHEN STREET UPPER, DUBLIN 8 Telephone: 01-4758970 10am-12noon or after 5pm (Tuesday-Saturday). Sunday-Monday: closed. NOW SELLING THE 29TH BANKERS’ CLUB DRAW Magnificent Holidays and Magnificent Cash Prizes Early Entry Prizes and Monthly Attendance Prizes Open to All IBOA Members and Partners The Draw Application Form is included with this issue of Spectrum CLOSING DATE: FRIDAY DECEMBER 19, 2014 Return your entries today! Don’t miss out! UPCOMING CLUB CLUB MEMBERSHIP DRAW NIGHTS Friday, December 19: New members welcome The 29th Christmas Draw Night 1st Prize: Two weeks for 2 in Join now for free membership Chicago, Niagara & New York until September 2015– 2nd Prize: €500 and cost then only €20 a year! 3rd-10th Prizes: Hampers,Turkeys, Features include: Hams & Bottles • Reduced room hire rates CLUB MEMBERSHIP Friday, January 30, 2015: • Bar & meeting room facilities 1st Prize: Two weeks for 2 in • Catering & DJ facilities Morocco • Big screen for all 2nd Prize: €300 3rd Prize: €250 sporting occasions 4th Prize: €200 • Full bar licence – extensions available Friday, February 27: 1st Prize: Two weeks for 2 in For more information, please contact Florida Michael Martin, Honorary Secretary, Irish 2nd Prize: €300 3rd Prize: €250 Bankers’ Club, at the address above. 4th Prize: €200 Friday, March 27: Grand Draw Night DRAW RESULTS 1st Prize: Two weeks for 2 in Australia or Mauritius & Dubai Results of recent Bankers’ Club draws or Rugby World Cup are posted on the IBOA websites at: 2nd Prize: €1,000 3rd Prize: €500 4th Prize: €300 5th Prize: €200 www.iboa.ie/services/sportsand social/bankersclub.html All draws take place at 9pm sharp. or Bar food served 5pm-10pm. Plus monthly attendance www.iboa.org.uk/services/sportsand prizes – Belfast – Dublin social/bankersclub.htmlDRAW RESULTS Club Bookings SPECIAL OFFERS FOR 2015 All IBOA members, Club members and their friends or family members can book the Bankers’ Club for a party or special function for just €100 from January to September 2015: Phone Alan at 01-4758970 Book your Christmas Party at the Bankers’ Club and enjoy free room hire during December 2014. 2 INSIDE INFO www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM In this issue… LOOSE CHANGE CURRENT ACCOUNTS Culture must change says IMF’s Lagarde 5 Banking inquiry 14 TTIPing the balance from At long last citizens to corporation 6 Back to Black 15 Breaking the Code of Silence BOI in profit 7 Payback AIB aims to repay State bailout eventually 7 Write-downs AIB writes down mortgage debt in pilot with IMHO 21 1914: bank workers on the 8 Murphy’s Law frontline New law on whistleblowers 16 Political economy Republic’s Budget fails key GOING CONCERNS tests on fairness and jobs 22 Inside IBOA British austerity policies Website make-over under way hurt North’s economy Our social partners: Twitter ICTU backs voter registration IBOA – and Facebook The Finance Union A pay rise for all Vision 2020 RBS can’t catch a break 18 Customer focus General Secretary: 24 Discount Window Larry Broderick 9 Danske profits improve CAI seeks inquiry on bank fees Making your cash go further 9 Permanent TSB stressed with IBOA Group Schemes Honorary Secretary: 10 ECB stress tests Tommy Kennedy RBS passes despite faulty data Communications 10 House calls Manager: Banks cool on regulator’s Séamas Sheils mortgage proposals Advertising: 11 More jobs go at JPMorgan Anna O’Doherty Louise O’Donnell 11 Bolden plans branchless Going Postal bank in UK IBOA House 20 Culture clash Stephen Street 11 World class strikers in Brazil Carney on banks and fairness 26 IBOA events Upper, Dublin 8 12 Life-trials of the Slick and 29, Malone Road, Shameless Belfast. BT9 6RU. Phone: 00353- 1-4755908 and CHAPTERS BOOKSTORE 0044-28-90200130 E-mail: [email protected] Parnell Street Dublin 1 Web: www.iboa.ie www.iboa.org.uk Spectrum is printed on recycled paper and wrapped for UK’s top director earns £31m posting in 10% oxy-degradable in one year poly thene at Currency traders who don’t discount for W. & G. Baird, give a forex IBOA members Antrim, Northern Ireland. Banker is best paid executive in New Zealand Oz: the ‘great and powerful’ Show your IBOA membership card at the pay point Cover photograph: Kym Kemp 3 INSIDE INFO SPECTRUM december 2014 IBOA THE FINANCE UNION www.iboa.ie www.iboa.org.uk In this issue… BANK NOTES FOREIGN EXCHANGE Mental health is key concern at work 28 Bank of Ireland 34 Worldview Milestone deal on pay and career progression FIXED INTEREST 29 Danske Bank 38 Game Time Seven more branch closures The pride of Ballyhaunis 39 Cinematique The final chapter The Guarantee FIFA overlooks migrant Inez: a challenging woman deaths and abuse 42 Prize crossword EU Commission fines four 43 Picture board and Sudoku banks 44 Game time 30 Ulster Bank NZ bank workers smell a rat Reasons to be cheerful More closures sought Bank news clips 46 Stephen Malone Negotiations on pay The curse of Drivetime Assault and Blattery! Engagement on restructure LIFE COVER IBOA – Lombard Ireland to transfer The Finance Union into Ulster Bank 36 Safety Feature General Secretary: 31 AIB Group Larry Broderick Pay talks under way Job losses likely in AIB GB Honorary Secretary: Tommy Kennedy FPCs accept deal on functional cars Communications Manager: Engagement at AIB Séamas Sheils 32 IBRC More infallible than the Pope Advertising: Pay talks under way New ICTU guide to assist No need for pay claims: Anna O’Doherty 33 Organisation workers with breast cancer women should trust in karma Louise O’Donnell IBOA House Stephen Street Upper, Dublin 8 29, Malone Road, Belfast. BT9 6RU. Wishing all our readers Phone: 00353- 1-4755908 and 0044-28-90200130 the compliments of the season E-mail: [email protected] Web: www.iboa.ie www.iboa.org.uk Spectrum is printed on recycled paper from the Officers and Staff of and wrapped for posting in IBOA The Finance Union oxy-degradable poly thene at W. & G. Baird, Antrim, Northern Ireland. 4 LOOSE CHANGE www.iboa.ie www.iboa.org.uk IBOA THE FINANCE UNION december 2014 SPECTRUM UK bank scandals confronting past do huge damage he scandals that have Tresulted in British banks having to pay out £38.5bn in fines and compensation over the past fifteen years will take a generation to fix, according to a new report from an independent think tank. The report by the think tank, New City Agenda, and the Cass Business School in London examined British banking culture that has led to scandals ranging from the attempted manipulation of foreign exchange and bench- mark interest rates to the mis- selling of loan insurance. It found that an aggressive sales culture took hold over two decades, with some branch staff receiving cash bonuses, iPods or even tickets to Wimbledon for meeting sales targets. The banking inquiry is due to get under way later this month, chaired by Labour TD Ciarán Lynch (above). “A toxic culture which was Photograph: Dara Mac Donaill (Irish Times) decades in the making will take a generation to turn around,” said David Davis, chairman of New City Finally a banking inquiry Agenda. “At this critical juncture, Britain’s biggest banks cannot Oireachtas agrees terms of reference afford to let the better treatment of customers become a second-order he Republic’s banking The first part of the inquiry – While Draghi ruled out formal priority,” he warned. Tinquiry is expected to get known as the Context Phase – is particpation on the grounds that The mis-selling of payment under way this month follow- expected to begin this month. It is the ECB was accountable to the protection insurance (PPI) alone ing the long-awaited approval likely to include preliminary work European Parliament – rather than cost British banks at least £27bn, involving technical briefings – with any national institutions, he according to the report. of its terms of reference by both the first hearings due to start in suggested that the ECB might be PPI compensation amount Houses of the Oirechtas. January. able to participate informally. At the end of November, the Witnesses in this phase are “We haven’t discussed yet totalled £11.3bn at Lloyds Banking, Oireachtas finally endorsed the likely to include the authors of pre- what sort of shape could take this £5bn at Barclays, £3.3bn at RBS terms of reference which had been vious reports into the crisis, such informal participation,” he said. and £2.5bn at HSBC. previously agreed by the eleven as Peter Nyberg, who reported on “We will think and reflect on this.” New City Agenda noted that members of the committee – based the banking collapse in early 2011, The Oireachtas inquiry aims to banks had received 20.8m com- as well as Klaus Regling and Max issue its final report by the end of on recommendations from an plaints since the financial crisis. Watson, who reported in 2010. November, 2015. However, with a ad-hoc advisory group, made up of It recommended that the new a number of economists and senior The hearings in the Nexus general election possible next year, Banking Standards Review Council civil servants. Phase are expected to begin in April some committee members have should talk to branch staff to check While the scope of the inquiry and conclude in September. raised concerns that the committee Contacts are believed to have might not be able to complete its is expected to run from 1992, when they are not under pressure to already been made with some work before it is dissolved.