Brian Lenihan Jnr (Dublin West, Fianna Fail)

——it was not taken into account at that stage because it was still under investigation by the regulator.

Regarding the decision on capitalisation, €1.5 billion was at that stage the recommended figure to generate sufficient confidence in the institution to maintain its financial stability. On foot of the decision to capitalise, a more extensive and intensive due diligence investigation was carried out and on that basis more precise facts on the transaction were brought to my attention in the middle of last month. That was one of the factors I took into account in making a recommendation to the Government.

I am sure Deputy Bruton is aware that matters relating to customers' deposits and dealings between customers and banks are necessarily confidential in character and cannot be put by me into the public domain in the absence of a concluded investigation. The investigations into this matter had not concluded but the provisional information available to me in the middle of January was sufficient to satisfy me there would a risk to the taxpayer in this and in the loan transaction——

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