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Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: You were an experienced banker, Mr. Fitzgerald. Should you have considered those matters or raised them at the board level?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: I suppose where I'm coming from, Mr. Fitzgerald, is you had a large number of staff underneath you. Your job was to get ... to look after the retail deposits-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: And the corporate deposits. And did you ... a term that is being used is "silos". Were you siloed? Did you only consider that and never offer other opinions to other executives within the bank?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: You were aware of the extent to which Anglo Irish Bank was a monoline bank.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: Were you aware that the figures that we've had presented to us was ... were, upon analysis, prior to the guarantee ... 82% of Anglo Irish Bank was made up of commercial real estate lending, 17% corporate, much of which was attached to the commercial real estate, and 1% residential. Were you aware of that?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: And were you satisfied at that stage that it was ... you used the term "prudent" ... that that was a prudent banking model?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: Not now, but back then.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: Sorry, at what stage did the crisis hit do you... in your view?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: Would you consider yourself somebody who is well-informed about what the market was saying about your institution - Anglo Irish Bank?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: And in terms-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: Did RBS not have a market note in relation to Anglo Irish Bank being monoline and that it was not systemic to the Irish sector? Were you aware of that market note?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: That was in 2007.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: If I could move on, Mr. Fitzgerald, did you consider at any point during 2008 that the bank was insolvent?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: On the night of the guarantee, did you believe the bank was insolvent?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: Did you believe there was billions required by the State at that stage or tens of billions required by the State to underwrite the bank?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: You didn't?

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: You said earlier that you were a person who was well-informed.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: But you must have been well-informed that the corporate deposits were possibly likely to ... I think the term used "flight to quality", that was your term.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: That that was likely to happen based upon the monoline status of the bank.

Committee of Inquiry into the Banking Crisis: Nexus Phase (3 Sep 2015)

Michael D'Arcy: Liquidity runs directly into solvency depending on the extent of the crisis.

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