Oireachtas Joint and Select Committees

Wednesday, 15 July 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Dermot McCarthy:

Well, in, in terms of the options which were considered, the idea of providing liquidity support for Anglo for a short period, was certainly considered. And it was considered also in the, in the context of the formulation of the guarantee strategy itself, that in other words, there mightn't be an immediate beneficial impact of sufficient scale such that they would still need liquidity support. But it was in the context of the scale of the outflows, which was reported, and very much on the explicit advice of the Governor and the Financial Regulator that in, in taking a step which mightn't be effective, there was a real risk that one would be removing the possibility of taking a second step that would be effective. In other words, there was one shot.

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