Brian Lenihan Jnr (Dublin West, Fianna Fail)

No. I dealt with that, as the Deputy knows very well. The Commission has stated since that reclassification that it has every confidence we have turned the corner. Commissioner Rehn made that point last week, as the Deputy knows.

Deputy Bruton and other Deputies raised a question about whether the causes of the financial crisis have been misdiagnosed as a failure of the regulatory architecture. Again, I did not put forward such a proposition. After many hours on the floor of this House picking through the causes and effects of the severe shock to the Irish economy arising from irresponsible practices in the financial sector, I can assure the Deputy that my view of the issues is considerably more complex and nuanced than that.

However, it seems clear that - as a first step - a new beginning requires a refocusing of financial regulation through a single, unified structure. It was on that basis that both Matthew Elderfield and Patrick Honohan were appointed to their positions. I do not want any ambiguity about the powers, role or function of the Financial Regulator. As we know, the former chief executive of the Office of the Financial Regulator retired in January 2009. I do not believe it was viable for this country to defer an appointment pending the completion of a banking inquiry or of some hearing in this House about the suitability of a person for office.

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