BANKS ARE WINNING THE WAR....#CONFLICTS OF INTEREST

There is absolutely no question about this, but the banks are winning the war against the borrowers. Its not even close, one by one, systematically, the banks across the land are working their way through their caseload and taking control.
When you stand back and look at it, what other outcome would you expect.  It has become clear since the meltdown in Ireland in 2008, the professionals one by one, realigned themselves with the banks.  Accountants, estate agents and lawyers started to chase the bank work as they worked out that their private client base was running empty on funds. 
Business is business and who can blame them, however having witnessed at first hand how some of the professional companies washed their hands of their once valuable clients, it can be quite sickening. 
2014 has arrived and the old Conflict of Interest debate is in full swing.  It never ceases to amaze me the amount of professional firms who are advising borrowers in the morning and in the afternoon advising the banks how to put the borrowers lights out.  Its absolutely incredible.  In the last few years in GDP we have sat in front of scores of borrowers who have went to professional practises for advice, are then given advice from that firm, then find out in a few months that that firm is then acting for the bank....(wait for it) as an administrator on their businesses assets!!! Incredible stuff.  It would appear that in this dirty old world of property, debt, insolvency - anything goes, and as professional practises are hungry for fees, there is absolutely no let up in this type of activity.

At GDP we took the view that when in the debt advisory business, you either act for the bank, or you act for the borrower - its impossible to give good sound advice to both - you simply cannot do it.  Why is it then that most in this space are doing both - o yes I forgot, "Chinese walls".  Having worked in private practice for over ten years I have to tell you that the old "Chinese Wall" set up, is an illusion - it simply doesn't work, in real life.  The only "Chinese Wall" that does work is a few miles outside Beijing - The Great Wall of China".  I would know as in 2002 I was standing on it with the Irish Soccer team at the world student games admiring the view - a magnificent piece of engineering.

If you find yourself in financial difficulty and you want independent advice, the first question I would recommend you ask the expert you are sitting in front of is - do you work for the bank?  if the answer is yes its probably prudent that you take your business elsewhere.

Conor Devine MRICS