Oireachtas Joint and Select Committees
Thursday, 28 May 2015
Committee of Inquiry into the Banking Crisis
Nexus Phase
Mr. Patrick Neary:
Well, there ... that picture didn't emerge for quite some time about the extent of ... of the funding. I can't recall the timelines, I'll have to ... I'd have to go back and review records that weren't included in any of these packs, so I ... I really can't, with confidence, recall them now. But, obviously, I mean, we were faced with a major problem. A problem that, you know, was going to clearly call into question the ... how the ... these shares that would have been held as a hedge against the CFDs might affect the share price if they were shorted or speculated against or lent to shorters or whatever, and that, in turn ... and the real concern was that any ... any effect on the share price could be misinterpreted by the market and, say, indicate a lack of confidence by investors and that people would start withdrawing their funds ... if it could transmit itself into a liquidity problem very quickly. And that was our main concern, how that would transmit itself into a liquidity problem. And ... because a week or so before we learned about the contracts for difference we had, I think, imposed a ban on short selling of financial stocks, because ... because of rumours and because of ... there was the famous Patrick's weekend where there was a kind of a ... you know, a serious shock to the share price of the banks, and we believed that there was a lot of speculation going on, but it was a week later we found out, probably, why that was.
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