Brian Lenihan Jnr (Dublin West, Fianna Fail)

The issue was identified in express terms as one which the Department should pursue. It was not even expressly identified as a risk factor in the report. When the offer was made to Anglo Irish Bank, however, in respect of the €1.5 billion, that was on the basis that the State would continue with the due diligence process with a more extensive and intrusive investigation into the affairs of Anglo Irish Bank covering deposits as well as the loan book and all the other features of the institution. At the conclusion of that due diligence my officials advised me about this issue. It was one of the issues which I took into account in recommending to my colleagues that the institution should be nationalised.

It is important to remember that the due diligence, which was instituted after the offer to capitalise Anglo Irish Bank for a 75% return, focussed on the deposit base as well as the loan book of the bank.

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