Oireachtas Joint and Select Committees

Wednesday, 9 September 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

Okay. One last question is, in relation to the Credit Institutions (Financial Support) Scheme, which the banks that were guaranteed signed up to and gave effect to the guarantee, there is ... one of the paragraphs there allows for the Minister to amend the terms and condition and also to discontinue the guarantee for any financial institution if it weren't keeping with the objectives of the scheme, which is that it is in the public interest. So, therefore, the scheme allowed for the cessation of the guarantee to any individual institution at any time. It's in article 8 of the scheme. Was this ever considered? Because you've made numerous comments about you couldn't burn bondholders until the guarantee extinguished in 2010, but the scheme actually allowed for the Minister to do that at any point. It had to be at six-month intervals that the review would have to take place. Was that ever considered? Did you look at this scheme in relation to that purpose? Was there ever a view offered that we should maybe look at this area in terms of discontinuing it for the likes of Anglo Irish Bank?

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