Oireachtas Joint and Select Committees

Wednesday, 22 April 2015

Committee of Inquiry into the Banking Crisis

Nexus Phase

Mr. Brendan McDonagh:

Well, when we had...well, I suppose when initially we had the loan-by-loan review and we had 60,000 properties, I mean, there was an effort made, you know, that...to check the security, but it wasn't possible to check the full amount and I suppose then when you actually look into detail, and typically, a lot of these issues arose when we acquired loans, it looked prima facieto be okay, that you had security, and then when you actually went maybe to sell the asset, or you went to enforce on the asset, you suddenly found that effectively the security documentation was defective and, I mean, you're right, there was €334 million of an extra clawback and that's about 1% of the consideration of the €32 billion that we paid.