Results 7,281-7,300 of 16,537 for speaker:Brian Lenihan Jnr

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: It cannot be extended.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: The scheme will end in two years' time and it cannot be extended. Deputy Creed asked about a sunset clause and this is the sunset for the scheme. The Government gave a letter to the relevant institutions on 30 September and this letter was reflected in legislation and in this scheme. The terms of the scheme have been cleared with the European Commission. It arose from a danger which had...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Very few people can understand what it means. Even the European Commission does not understand what it means.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: There have been a large number of questions.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: I indicated earlier I would be interested in the views of the House on the appropriate type of person to appoint to the public interest panel. Deputy Pat Rabbitte is correct that their duty will be to promote the public interest but their primary duty will be to the bank's shareholders. This is because this is not a nationalising measure; it is one step short of that. What we have arranged...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: In seven days one cannot repeal that tradition that imposes ethical and legal responsibilities on the director of a company.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: I will be judged on this matter by the quality of the people on the panel. That is the key point. Their contribution and record regarding their capacity to act in the public interest will be the judge of their ability. Deputy Alan Shatter raised the issue of lending policies and the treatment by banks of those who get into repayment difficulties. This is covered in paragraph 26 which...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: We can apply elements to it but there has to be a careful ring-fencing of the operation to its presence in the Irish economy. That is the whole purpose of the ring-fencing element of the scheme. Paragraph 50 provides: A covered institution shall manage the business of its group at all times with a view to furthering the purposes of this Scheme [and] the Minister may require certain...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: That is a fair question but the whole point about the scheme, if one examines its contents and the statement already made by the regulator concerning the implementation of the scheme, is the intense degree of supervision that we are now exercising in the banking sector. The Deputy is right to say that is inseparable from the character of the guarantee we have given. We have to exercise...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Deputy Feighan asked about profile statements by financial institutions, breaking down their lending between different sectors in the economy. In fact, they have published such information in the past. Under the scheme it would be possible to require the publication of such information. It does not present any difficulty. One cannot assume that a particular sector is toxic in its...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: The more important point raised by Deputy Ned O'Keeffe — and I agree with him — is the importance of the sub-committees that deal with risk assessment, auditing, remuneration, and credit and risk committees of the institutions. Under this scheme I have the power to appoint persons to observe all those meetings. That is a critical power in this scheme.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: There are sub-committees, as the Deputy well described for us, and under this scheme we have powers to send persons to attend all their meetings. Deputy Durkan asked a number of questions which, I must confess, I could not quite fathom. The regulator is recruiting 30 additional staff to assist him in the intensive supervision of the financial sector.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: An investigation has commenced. The regulator has engaged a firm of auditors to assist him with that.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: The regulator has engaged a firm of auditors to assist him in the relevant investigation and the information has been put at the disposal of my officials.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: The audit is under way for several weeks. To clarify, I am not investigating the regulator.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Deputy Coveney asked about the oversight reports. These will be commercially sensitive documents and the information contained in them cannot be publicly disclosed for that reason. The Deputy also asked about the balance struck in the scheme and whether the State has too many powers in the absence of an equity participation. It is true that the State does not have an equity participation...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: I accept we could have looked at that.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: We could have considered requiring of the banks a participation in equity. However, as I said in the House when I put through the Bill, the best course of action at this stage is to seek cash from the banks in return for the sovereign guarantee they will receive.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Yes, but we have not come to the stage of nationalisation in this legislation.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Once there is State participation in the shareholding of a company, the entire direction of that company is exposed to the type of political pressures we have seen in the past.