Ciarán Lynch (Cork South Central, Labour) | Oireachtas source

It's in Vol. 1, page 67, if you want to look at the hard copy but I'll get the documentation on the screen before you. So, as I said, an inspection of commercial property lending activities in Anglo by the Financial Regulator in May 2007 identified 30 separate issues which it required to be addressed, at which it listed in the report dated 27 June 2007, and that's on the screen there in front of you. So what you see is a letter from Ms Mary-Elizabeth Donoghue, banking supervision department, at the office of the Financial Regulator. I'll just take two paragraphs of it there. The first letter, it's May 2007 and it's a letter to Mr. Drumm and it says, "I refer to the inspection of Anglo Irish Bank Corporation plc ("Anglo") carried out by the Financial Regulator between 9 and 17 May 2007." Then moving on to the third paragraph, it says, "The Financial Regulator's inspection process is a high level review and does not constitute a detailed examination or audit." So, at this stage, it's high level, it's not drilling down into very, very specifics. And as a result, it then goes on to say, "Consequently, the inspection process may not be relied upon to identify all issues arising in the areas reviewed." So, it outlines there that there might be other matters as things advance on.

So, if I could just move on to the regulator's letter then which is the next one up and you see there, there's a number of headings. There's the "Group Credit Policy" is one with nine items under it. The next one is the "Exceptions to Group Credit Policy" that has three items under it. "Credit Committee Terms of Reference" has another item under it. "Group Risk Management Operations Board" has two items under it. "Risk Management Reports" have two items. "Personal Guarantees" have an item. "Group Watch List" have an item. "Loan Review Process" have an item. "Breaches of Internal Limits and Targets" have two items but is broken down into more detail with some Roman numerals. It then goes on to "Stress Testing" has an item. "Hedging of Risk" has an item. "Condition Precedent" has an item. "Review of Loan Files" has three items. "Interest Only Breakdown of the Loan Book" has an item and "Job Descriptions" has an item. It's quite extensive. Were you, as a board member, made aware of this report and was it discussed by the board?