Wednesday, 18 February 2009
Banking Sector Regulation.
Richard Bruton (Dublin North Central, Fine Gael)
The Minister will understand that, on this side of the House, there is a great deal of scepticism over how the Anglo Irish Bank issue has been handled over a long period. People did not bother to ask the questions that ought to have been asked.
Is it not difficult to believe that confidence in our regulatory system will be restored when it is the regulator itself that is accused of being ineffective, at best, or, according to some accusations, complicit in some of the things that have gone wrong? Is it not hard to believe an investigation carried out primarily by the regulator will be sufficient to restore confidence?
What success can the Minister report from his announcement of recapitalisation last week? Are recovery and liquidity evident in the banks? Are there other indicators that the approach is accepted as sufficient to deal with the issue?
Will the Minister confirm whether payment by the banks in respect of the coupon on the preferential shares is to be optional or compulsory? A view now seems to be emerging that it is optional. Does the Minister believe there should be an entirely clean sweep of the regulatory authority and all banks' top executives and boards that receive State capital so we can start afresh?