Oireachtas Joint and Select Committees

Thursday, 23 April 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Donal Forde:

Well. There were two things. This was my picture of it. There were two things happening. There were specific concerns about two institutions. They were giving rise to a particular focus on the Irish market, but generally, banks even beyond Ireland were having difficulty with funding and liquidity. The conversations were essentially reviewing both of those dimensions, the domestic concerns revolving around those two, and the broader global picture which was deteriorating rapidly. That certainly was what was in mind as the situation then became more acute, when engagement was going on with the Department of Finance and the regulator. The briefings at those sessions would be from the head of capital markets, from the Head of the UK division, an assessment of those by the chief risk officer, the head of finance, the chief executive, so that conversation was going on. The view that a potential remedy for it was to take out the two problematic institutions, and even then, when they were taken out, perhaps to guarantee in some limited way the liabilities of the other.

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