Oireachtas Joint and Select Committees
Wednesday, 28 January 2015
Committee of Inquiry into the Banking Crisis
Context Phase
Professor Edward Kane:
During the immediate crisis, the bank guarantee will usually resolve the immediate crisis. The question is how to get out of it and roll it back. It must be rolled back so one should extend haircuts or provide that some things will not be guaranteed. The worst thing would be to say the blanket guarantees were forever. They usually have a short fuse, precisely so that they can be adjusted.