Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

Okay, I'll ask you now just because ... this was immediately, as I said, on the morning of the guarantee.

Mr. Tilson goes on to say:

Never mind anything with a Government guarantee.

MICK: Yes, but [even if you were to] ... even if you get the -- let us say you get out and you take billions.

MR. TILSON: Yes.

MICK: Right, and it's ... it is Government guaranteed etc., etc., like all that is doing is essentially shoring up an overly geared balance sheet.

MR. TILSON: Absolutely.

MICK: So it is giving you money, wholesale money for two and three years, issuing capital, whatever?

MR. TILSON: Yes.

[MICK]: But you are still left with a balancesheet and we know with bad debts.

MR. TILSON: Right.

MICK: That are going to come against us.

MR. TILSON: Yes, absolutely.

MICK: Like, that is kind of almost like a zombie bank.

MR. TILSON: Yes, no absolutely.

MICK: And it is not dealing with the real issue, as he said, which is capital and bad debts.

MR. TILSON: Yes.

MICK: [And they are both ... ] And they are both inextricably linked?

MR. TILSON: They are.

How come that senior people in Bank of Ireland, on the morning of the guarantee, were talking about the issue that this wasn't dealing with the real issue, which is capital and bad debts within the bank, but you as governor, as you mentioned earlier on, were not concerned about those two areas at that time?