Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Like every citizen in this country who is working hard to restore the economy, I am deeply disturbed by the taped conversations from 2008 involving these executives of the former Anglo Irish Bank and dismayed to hear senior banking executives refer to the banking crisis with such arrogance. Irish taxpayers have grimly endured the austere cost of the bank recapitalisation and the bank guarantee and are, understandably, outraged by these revelations. Irish citizens have suffered greatly as a direct result of the banking crisis and the events which led to the bank guarantee. The recent revelations will only serve to reinforce the Government's resolve to move this country back in the right direction by tightening up regulation and enforcing it.

It would not be appropriate for me to discuss the employment of specific individuals in the bank. Ultimately, the board and management of Anglo Irish Bank-IBRC had responsibility for the ongoing staffing of the bank. As the Deputy will be aware, there was an extensive restructuring of the governance and management of Anglo Irish Bank immediately following the nationalisation of the bank in January 2009. As part of that restructuring, all non-executive directors in the bank, other than the Chairman and those appointed under the guarantee scheme, resigned and were replaced with a new board. None of the new executive or non-executive directors was involved with the bank prior to nationalisation.

In addition, there was an extensive reorganisation of the senior management team, commencing with the appointment of the former CEO of IBRC, Mike Aynsley, in September 2009. Following that appointment, the entire executive of the bank was replaced with an appropriately skilled senior management team to lead the newly formed IBRC, namely, the combined former Anglo Irish Bank and former Irish Nationwide Building Society, through the process of wind-down. Under the relationship framework the board and senior management of the bank were responsible for all staff employment matters at the bank. I had no role in this matter. None the less, the tapes raise serious issues and the Government is committed to ensuring the public is fully informed about what happened in Irish banks in the lead-up to and during the financial crisis.

The Government has published the Houses of the Oireachtas (Inquiries, Privileges and Procedures) Bill 2013 which, if enacted, will provide the legal framework for a banking inquiry to be held within current constitutional parameters. I expect that once that legislation is on the Statute Book, the Houses of the Oireachtas will move quickly to progress that inquiry. It is important that all relevant parties participate fully with any resulting inquiry.

Additional information not given on the floor of the House

There are ongoing investigations by the Gardaí that must be let run their course. The Central Bank is carefully studying the various transcripts emerging and will be liaising with the Garda in this regard. The Central Bank is also examining whether any breaches of regulatory requirements may have occurred arising from the information contained in the transcripts.

See this speech in context