Oireachtas Joint and Select Committees

Thursday, 9 July 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Dr. Michael Somers:

It came onto my colleagues. And we agreed we'd put in €40 million for up to one year, and the pressure continued from them to put in more and we wouldn't put in any more. Now when the crisis occurred I checked on the Anglo deposit, and somewhat to my dismay I discovered that the deposit had been put on for 12 months, it was a 12-month deposit, because I thought maybe if it's three months, we'll get our money back quickly and that'll be the end of it. But, unfortunately, it was on for 12 months. So I went to see then could I get a credit default swap, which is effectively an insurance against the bank going bust, to cover the Anglo deposit but, I mean, the costs were off the wall for us to do it, even at that early stage. Obviously, there was very little confidence in the ... in Anglo.

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