Seán Ardagh (Dublin South Central, Fianna Fail)

I am pleased to have the opportunity to commence my contribution to this debate on NAMA. It is important to look at the record of the Minister for Finance on initiatives he has taken in banking. One such initiative is the guarantee that was given. We know up to now more than €1 billion has accrued in fees to the State as a result of it. The situation regarding bank recapitalisation is far better. The figures given in the NAMA document were eye-opening and it was the first time many of us got such inside information on the finances of Bank of Ireland and AlB.

The market capitalisation of AIB today at 5.30 p.m. was €2.3 billion and the share price was €2.63. When the Minister for Finance took up the redeemable convertible preference shares along with the warrants of 8%, there was an option to convert those shares into 25% of the issued capital. If one took AIB and Bank of Ireland on the basis of their share price today, there would be a profit of €1.3 billion just from converting preference shares into equity. Along with that, the Minister is getting 8% of a coupon. The recapitalisation was a significant investment and a very good deal.

Deputy Varadkar mentioned the 1.5% coupon, asked how long it would last and when it would be unwound. The banks will get a significant amount of money-----

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