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Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: I think there is a career in politics beckoning for Professor Farrell. Does he believe in Cabinet confidentiality? How does he reconcile the principle of Cabinet confidentiality with senior public servants being able to give a view, for example a view which differs from the Minister's, and which may be critical of a decision under which Cabinet confidentiality has arisen?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: I am afraid Professor Farrell is being provocative.

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: I welcome Professor Hardiman. I will focus on the area on which she was asked to contribute - the contribution of the system of governance pertaining to the circumstances that gave rise to the banking crisis in Ireland - as well as the second and third points she mentioned - privileged access to decision makers and groupthink. She said politicians and key public officials had too little...

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: How did the crony capitalism manifest itself in the groupthink? What were the examples of it? How did it manifest itself practically in that period?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: What institutional forms could have been put in place at the time that would have provided stability in helping to prevent the banking crisis from taking place?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: In her paper Professor Hardiman speaks about the proliferation of the organisational zoo, with the growth of State agencies. One of those involved the separation of the Central Bank and the Financial Regulator, which happened at the time. How much of a factor was this organisational zoo of the various animals of Government and State organisations? How much did it contribute to...

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: Where was the high concentration? Where was the exponential increase?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: In what period was the exponential increase in numbers?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: Professor Hardiman referred in her briefing paper to Denmark's banking crisis. She said that, according to various analyses, differences lie in the relationships between the banks and government. When she compared Denmark and Ireland, what differences did she find in the relationship?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: Could Professor Hardiman deal specifically with the relationships between the banks and government?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: With regard to good governance, what are the key elements in the Irish context? First, what were the weaknesses in terms of practical key elements? Has progress being made in that area? What would Professor Hardiman like to see?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: We are here to deal with the banking crisis. What does Professor Hardiman believe has been taking place since the crisis that is positive? What more needs to take place?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: In summary, in terms of the work of the inquiry, what further institutional reforms does Professor Hardiman believe need to take place to prepare us for another banking crisis that may arise down the road?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: I welcome Professor Honohan. What was the Governor's motivation in writing the letter received by the committee on 12 February, which was four weeks to the day after his appearance before the inquiry? The Governor appeared before us on the 15 January, four weeks ago to the day. Is this appearance substantive or material to the workings of this inquiry? Was it influenced or driven by anyone...

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: Did Mr. Doyle contact you directly?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: Did he contact you on foot of your appearance before the inquiry?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: Did he believe it was an inaccurate portrayal of his position?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: You said as well: "My understanding of Mr. Doyle's perceptions of the state of Anglo in September 2008 is based on other previous conversations". When did those conversations take place? What was the content of them?

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: Let us go back to the transcripts. On at least four or five occasions the Governor makes specific reference to having spoken to David Doyle. In questioning by Senator O'Keeffe he said, "I asked the person involved-----

Committee of Inquiry into the Banking Crisis: Context Phase (11 Mar 2015)

Kieran O'Donnell: It is on page 148 of the transcript. This refers back to the memo of 25 September 2008, which was completed by Mr. Kevin Cardiff and specifically revolves around the statement: "D Doyle noted that Government would need a good idea of the potential loss exposures within Anglo and INBS - on some assumptions INBS could be 2bn after capital and Anglo could be 81/2." In response your response to...

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