Brian Cowen (Laois-Offaly, Fianna Fail)

That is not my job. My job is to keep stability in the financial system. In that regard we are making a recapitalisation scheme available that will include existing shareholders, perhaps prospective private investors and the State.

The recapitalisation proposals will come from the boards of those banks. We are prepared to participate in a recapitalisation in the interests of keeping a stable financial system so that the real economy — trying to maintain jobs and investment — can function as a result of having a stable system. It is not for the purpose of dealing with the banks, as banks. It is because, in a modern economy like this one, we need to have access to sufficient lending and commercial credit as is required. We therefore need to ensure, as part of that response, there are properly capitalised institutions.

The market has a view on this but, in terms of regulatory positions — the regulatory issue, which is the legal issue — there is sufficient capital adequacy ratios in our covered institutions. That, in case it is lost somewhere, is an important point to make in the context of this discussion. We are prepared to participate on certain terms and conditions, which will be established by the Government when it sees specific proposals come forward by those banks which wish to have recapitalisation schemes dealt with.

The question of whether there is an underwriting process or preference or ordinary share capital will be decided when we get proposals in early January. With regard to the cash reserves held by the National Pensions Reserve Fund, there is cash under the NTMA general aegis that is available to us.

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