Union appeal to MLAs on bank sale
Issued : 8 April 2010
LondonWired
The union representing staff at First Trust bank is to lobby Northern Irelands's MPs and MLAs as it steps up opposition to the sale of the bank.
First Trust's parent company Allied Irish Banks (AIB) has put it up for sale as it tries to raise 7.4bn euros to rebuild its balance sheet.
The Irish Bank Officials Association (IBOA) said the sale would result in lost jobs and reduced lending.
The union has written to the finance spokespeople of all the parties.
It said AIB should be stopped from selling First Trust at "fire-sale prices".
Instead it believes First Trust could be used to help return AIB to profitability.
AIB will sell 23bn euros worth of loans to the Irish Republic's state-owned "bad bank" (Nama) which was formed to remove toxic assets from Dublin-headquartered banks.
As the loans will be sold at a discount the bank will have a "black hole" in its balance sheet.
It also needs to raise more money to meet new rules on how much reserve capital Irish banks must hold.
First Trust employs about 1,500 people in Northern Ireland and has 48 branches.
