Oireachtas Joint and Select Committees

Wednesday, 28 January 2015

Committee of Inquiry into the Banking Crisis

Context Phase

Professor Edward Kane:

They should focus on the notion of taxpayer equity. What is the value of taxpayer equity in a firm? Is it negligible and is it increasing? If is increasing, that is what we want to pick up. That would do a great job of measuring it at first. If whatever they are measuring is increasing, they know they will be flagging a problem before it gets to the severity we saw in 2008 and 2009.