Results 3,201-3,220 of 49,836 for speaker:Stephen Donnelly
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: Yes, but there are ways of avoiding the 33%.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: I thank Ms Breheny. I would like to ask Mr. O'Mahoney about risk. The capital markets union seems like a good idea. One removes transaction costs, improves the free movement of capital and makes it possible for Irish-based investors to look at opportunities in London or Berlin, while investors in those areas can meet with Mr. O'Mahoney's members and do debt for equity rather than making...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: Not many of the committee's members are present, but they are watching the broadcast and the debate is also being recorded. I ask the witnesses to explain to the committee what implementation of the CMU would mean, on a practical basis, for members of their organisations.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: Let us discuss a few of those elements. Banking will be redefined in the next decade, and peer-to-peer lending will explode. Let us take it as an example of what could happen from the point of view of citizens or investors and members of the organisation. Let us assume a widget manufacturer in Clonshaugh lends money to a widget manufacturer in Bavaria because it knows the business. The...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: Mr. O'Mahoney may not have his job when he gets back to his organisation.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: May I continue?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: The Vice Chairman can do so, and I will comment later.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: I have a final question, on equity funding. Has either organisation tried to measure the demand for equity funding in Ireland at present that has not been met?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: That is approximately €305 million per year. How much of that is currently being met?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: Is there unmet demand for equity financing at present?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: If the sum is approximately €300 million per year-----
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: Does Ms Breheny have a sense of what the market could take based on reasonable investments rather than crazy ones?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: Would it be five or ten times that?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: I thank the witnesses for their time. There are some obvious advantages to CMU. Transaction costs are reduced, competition is increased - in theory, anyway - and the end consumers, be they SMEs, large organisations or citizens, should see the advantages of that through lower prices and lower costs of financing. There is also an obvious danger, however. I do not know if the committee is...
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: Is the witness concerned that the CMU is going to lead to hot money? In his view are the safeguards adequate?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: I agree that the question about quantitative easing is what happens when the ECB turns off the tap. When the Fed turned off the tap, it did not go so well. However, it is not just about that. If CMU is in place in four years' time, this would be round 1 of quantitative easing. We have just started another asset price bubble and the ECB will fuel a bubble through quantitative easing....
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: Will this translate into lower borrowing costs for consumers, mortgage holders and SMEs in Ireland in the coming years? If so, what sort of quantum do the witnesses think we might be talking about?
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: In Mr. Lardner’s case, does he see it as reducing the yields? I guess that is the analogy.
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: I thank both witnesses. I have raised a matter at all of today's sessions. When I read through the Green Paper, it worried me because it was intellectually weak and there was no counterfactual analysis or risk assessment. It felt like it was written by a cheerleader for free capital markets. Obviously, reducing transaction costs is good and diversifying sources of funding is useful....
- Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Green Paper on Capital Markets Union: Discussion (31 Mar 2015)
Stephen Donnelly: The people who were here earlier today were speaking about the fact that this would diversify risk, there would be securitisation and so forth. It was like being in America in the early 2000s. It was the same conversation: "We will make it easier and we will make the markets more efficient. The markets know how to allocate risk and everything will be good." It is unsettling to listen to...