Oireachtas Joint and Select Committees

Thursday, 16 July 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Paul Gallagher:

2010. And the effect of that, if I can just clarify, because, I think, Mr. Corrigan said correctly that, in fact, most of them were bailed in through liquidity management exercises, but it was the fact that the legislation was there which enabled the State to bail them in, that encouraged them to accept voluntarily, as part of the liquidity management exercise, a very substantial writing down of their entitlements. There was only one case where the Act had to be used. That was in the case of AIB. There was a legal challenge. That was compromised -I don't want to say the detail of it - but on a very satisfactory basis for the State. So it was the existence of the powers and the tools that were critical.

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