Bank of Ireland faces having to set aside £350m to cover compensation and costs for role in UK's car loans debacle. Photograph: Cyril Byrne
How could it possibly be good news that an Irish bank is facing an even bigger financial-scandal bill than the tracker-mortgage crisis?
Bank of Ireland revealed before the Dublin stock market opened on Monday that it faces having to set aside a total of £350 million (€403 million) to cover compensation and other costs in relation to its role in the UK car loans debacle.
That’s £207 million more than it had previously ring-fenced – and about £80 million more than what analysts had marked in for Bank of Ireland after the UK Financial Conduct Authority (FCA) estimated this month that the UK car-loan sector would need to spend £11 billion to clean up the mess. Bank of Ireland’s Northridge Finance unit has a 2 per cent share of the UK car finance market.
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