Mr. Ed Sibley:

There are three aspects to cover in answering that question. First, in respect of the banks where there is a degree of State ownership, that is, Bank of Ireland, AlB and Permanent TSB, there are very firm restrictions on the variable pay rates that can be paid within them. It is very tight, but I will come back to that matter. Second, on the overarching rules at European and international level, a lot of work has been done to make sure there is a potential clawback on any variable pay element for up to ten years. In the circumstances described by the Senator, if someone is incentivised to do something that is profitable for the bank or institution in the short term but results in costs in the longer term, the variable element can be clawed back. That is part of the regulation.