Marc MacSharry (Fianna Fail) | Oireachtas source

I will go back to Governor Honohan for a moment, who was mentioned by Deputy Phelan. On page 5 of Vol. 1, he wrote about the Government's best available response given their limited information. He spoke of the:

...two failed banks should, in my opinion [I'm quoting], have been intervened by the public authorities, replacing top management, likely through nationalization (this corresponds to Minister Lenihan's stated preference). ELA should have been provided to allow time for consultation with European officials (including on the potential for risk-sharing). A more limited systemic guarantee should have been provided (no old - i.e. existing - bonds, no sub debt).

Do you believe that European officials would have agreed the possibility of risk-sharing if the Government decided, despite the accepted doctrine that everybody apparently knew, to liquidate the two banks that Governor Honohan referred to there?