Kieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

In the limited time available to me, can I move on to something in which the European Commission is directly involved. I do not know if Mr. Nava had the opportunity to view the contribution of Professor Black, who appeared before the committee this morning. Professor Black spoke about the impact of Basel II and said its outcome was preposterous. He said that the level of capital required in Europe was a third less than what would have been required in the US. He said the US effectively requires three times the level of capital weighting reserves that would apply in Europe. Also, the Basel III agreement will allow banks to have loans - effectively assets - to customers of 33 times their core Tier 1 capital. It is similar to the leverage of Lehman Brothers prior to its bankruptcy. Can Mr. Nava give his view? As that is very much within his domain, how does he respond to Professor Black's criticism of Basel II?