Brian Cowen (Laois-Offaly, Fianna Fail)

The reason we have nationalised the bank is to ensure the bank functions and we retrieve whatever debts are due to it to the greatest possible extent in respect of any transaction in the bank. We made it clear that the management and board of the bank will do so according to normal banking practice. They will not be interfered with on a day to day basis by this or any other Government that would have enough sense to know how that should proceed. That is another canard that has been thrown out as part of the rumour machine we must contend with.

I have made the point clearly that in respect of the proposed recapitalisation at the time, in the statement we made on 23 December, on Anglo Irish Bank we were talking about taking a 75% stake in the bank to provide capital of up to €1.5 billion to it. Upon deciding that, with the loss of market confidence being such and the governance issues that were arising, we said we would have to nationalise the bank because there was no market confidence in its ability to continue under those structures. We nationalised the bank; we have not put money into it yet but we stand ready to support it.

That is the decision we made and it is at great variance with the suggestion we made about the recapitalisation of the other two banks at that time, a €2 billion capital injection plus €1 billion underwriting that would be supported by the Government in return for a 25% share if the private capital was not raised. It is a totally different transaction, taking into account the very different situation for Anglo Irish Bank compared to the other two main banks.

The Minister for Finance has indicated that we regard regulatory reform as a priority and that we must proceed with it to change the structure, how we provide regulation and its type. That is a challenge not only for this jurisdiction, but for every jurisdiction that must face this financial crisis. This is not unique to Ireland, although I am not suggesting in any way that is a factor. We must ensure, on the basis of the facts before us, that we have a new regulatory regime.

On this question of the transaction undertaken by these individuals to help to unwind the CFDs that had been built up in the Quinn stake in the bank, the issues that are arising now on that arose because of a due diligence undertaken, I again emphasise, by people acting on behalf of Government. If the contention now is being made that in some way we nationalised a bank to protect people——

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