Results 7,561-7,580 of 27,945 for speaker:Michael McGrath
- Written Answers — Department of Finance: Knowledge Development Box (15 Jan 2015)
Michael McGrath: 70. To ask the Minister for Finance the consultations underway by his Department and the Central Bank of Ireland; and if he will make a statement on the matter. [2027/15]
- Written Answers — Department of Environment, Community and Local Government: Dormant Accounts Fund Deposits (15 Jan 2015)
Michael McGrath: 218. To ask the Minister for Environment, Community and Local Government the current balance in the Dormant Account Fund; and if he will make a statement on the matter. [2028/15]
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: The Governor is very welcome. I thank him for attending. The Chairman asked the Governor at the start of the meeting the cost of the bank guarantee and he said in net terms it was in the region of €40 billion. I want to tease that out with him. In his view was it the guarantee itself that cost that or is he referring to the rescue of the banks?
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: I accept that but going even further than that in terms of the management of the banking crisis, as the Governor knows, the guarantee was a two-year guarantee. At the end of September 2010 about €40 billion of senior bank bonds came out of guarantee and they were not covered by the eligible liabilities guarantee, ELG, which replaced the original one. Did the fact that every cent of...
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: Yes.
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: It is a fairly direct question. Did the fact that everything which was unguaranteed had to be repaid contribute to the overall bill of rescuing the banks?
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: There were €20 billion of unsecured senior bonds that came out of guarantee at the end of September 2010. They were not all INBS and Anglo.
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: That is an opinion as to what you could have talked about.
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: Many people would argue you could have talked about everything-----
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: -----that we were rescuing the banking system-----
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: -----and that everyone should share the burden.
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: Okay. The Governor makes a point in his report about subordinated debt, which Deputy O'Donnell teased out with him also, and there is a clear criticism of the inclusion of dated subordinated debt. In view of the fact that the heavy losses were subsequently imposed on junior bondholders to the tune of approximately €15 billion, what could actually have been saved if all subordinated...
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: The Governor is also making the point about long-term debt. Is he referring to other senior bonds-----
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: -----that should not necessarily have been included in the guarantee?
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: Would that have been credible? Would that have-----
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: -----given sufficient confidence to lenders?
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: Okay. Should Anglo have been allowed to fail at the end of September 2008?
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: Is the Governor saying that that decision should have been made even with the information available at that time or is he saying it with the information we now have about the insolvency----
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: And then liquidate so that we would not be talking about a disorderly failure, as the Governor referred to in his report? He is talking about a liquidation.
- Committee of Inquiry into the Banking Crisis: Context Phase (15 Jan 2015)
Michael McGrath: The Governor says in the report that a disorderly failure of Anglo, which he said was systemic at the time, would have in all likelihood meant the other banks running out of cash within days. He is not talking there about a liquidation. He is saying if the Government had done nothing Anglo just could not continue in business.