Oireachtas Joint and Select Committees

Wednesday, 10 June 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Tom O'Connell:

Yes. I think the first meeting was probably middle 2007 and at that point the liquidity problem had arisen straightaway. I think it was 9 August. BNP, I think, had a problem, a liquidity problem. In fact the governors across the eurosystem had to come back from their holidays to look at things. So, they were straight in ... the DSG was straight in to monitoring liquidity and, in fact, if you look I think at the material, the minutes and so on and the reports on the DSG for quite a while beyond that, it was very much focused on liquidity and the fact that the Irish banks were finding it more difficult to get access to funds and ... particularly to short-term funds, sorry to longer-term funds. They couldn't roll over longer-term funds, so the Department needed to be kept apprised of that ... on a continuing basis, just to see, you know, how things were developing.

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