Brian Lenihan Jnr (Dublin West, Fianna Fail)

First, in regard to the position of the board of the Financial Regulator, one of the options under consideration by the Government is the fusion of that board with the board of the Central Bank. I am not saying the Government has decided to adopt that conclusion but it is a matter under consideration. In the circumstances the best course is to await the bringing of proposals to Government before addressing the question of the board of the Financial Regulator.

In regard to the reputational damage done to the good name of Ireland in banking circles, I am pleased Deputy Burton has acknowledged that that is the core issue in regard to what happened in Anglo Irish Bank. The various practices that have come to light, that are coming to light and that will come to light in the regulatory reports, have done serious damage to our reputation abroad. In the case of a small country financial institutions are not readily distinguished by overseas markets and investors.

Specifically in regard to the question on Irish Life & Permanent, the regulator is continuing to make inquiries in regard to the full circumstances of the back-to-back arrangement. Incidentally, I have checked the records in my Department and while there was a reference to the back-to-back arrangement in an early draft of the PricewaterhouseCoopers report, the formal summary submitted to me did not contain any reference to that back-to-back arrangement.

The regulator is making intensive inquiries about the circumstances of transactions in the Irish Nationwide Building Society. Deputy Burton also raised the status and position of the Irish Nationwide Building Society. I am arranging to meet the chairman who resigned and I will discuss those matters with him. I assure Deputy Burton that a close surveillance of this institution is being maintained by my officials and by the regulator and the Central Bank, as is the case with all six covered guaranteed institutions.

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