Mr. Dermot McCarthy:

I think that the reality was that the information which came to light slowly and painfully over some time should have been known to the system well before the guarantee. In the event that ... the scheme of the guarantee, in other words, the particular commitments that covered institutions had to enter into in order to access the guarantee, was quite broad and directive and it gave enhanced powers to the regulator in terms of the conduct of the institution, its funding strategies, as well its loan book ... its management of its loan book. So in a sense the framework for ... not just due diligence but acting on the due diligence was created by the scheme itself. But that was very much a second best to having had that degree of oversight and engagement and knowledge well in advance of the guarantee.