Peter Mathews (Dublin South, Independent) | Oireachtas source

I think it was between 158% and 161% between March 2008 and March 2009, which was shocking. If we take a 160% figure and measure it against the surplus using the 90% figure, the prudential, steady-Eddie bank balance sheet management amount, we will see that the average is 70%. That figure - 70% - is the keel that should have been obtained if things had not gone out of control over seven years up to 2008 and represents measurable culpability of 75% on the part of the partial creators of the asset price bubble which had developed on the back of the credit pyramid bubble. That is simple. Ann and Barry readers could explain it and we do not need a banking inquiry to tell us that. The banks, particularly the court of directors at the top of the pyramid, were culpable in those seven years. The auditors were also culpable. They should have been saying, "Guys, stop expanding your balance sheet at this unsustainable rate." I will explain why.
I am sure the delegates have read Tim Geithner's book Stress Test, which is a good name and has been out for a couple of months. In it Mr. Geithner writes about the size of the domestic banking sector in the United States, which is just over 100% of GDP, or $12 trillion. In Ireland the culpability of the boards of banks collectively and AIB specifically is measurable because the weighted average loan to deposit figure was 173% across the Irish-owned banks. The banking system went from three times to over five times the size of national income. That is the credit pyramid and that is what the banks did. We know what they are now saying to the people whose asset prices collapsed. By the way, the 23% figure is illusory, as I said. It is not true because the prices of these transactions do not represent the volume of transactions. In the same way, Bank of Ireland share price today - 30 cent - when multiplied by the shares outstanding does not equal the market value of Bank of Ireland. Similarly, the 23% figure that is based on a few transactions in Dublin does not apply to the whole property market and the banks have a responsibility to tell the Government that, as they are at the coal face of the experience, as Mr. Boucher knows.