Professor Patrick Honohan:

Okay, so this is before my time so this is the first wave. And as I understand from reading the papers, its not actually covered by my earlier research as well so I'm a little bit ... what I understand is that it was based on ... the was it Pricewaterhouse produced reports and they came to the conclusion that bolstering the bank capital to that extent would give comfort to the market and give sufficient comfort that the Irish banks were sufficiently capitalised. Obviously the work that was done up to then was not sufficient, and the sufficient work really wasn't done until well into 2010 to really know. What was missing in all of that analysis was a loan-by-loan quality review as is now the term AQR - asset quality review, is becoming ... it's not stress testing, it's not what will happen if things go wrong. But it's what is the true value? Accountants may look at something and apply some rules of thumb, but what is the true recoverable value ... that work wasn't done.