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Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: I wish to round off with an issue raised by Senator O'Keeffe. Does the professor believe that the Government should have made a different decision in 2008, given the information it had to hand and will he outline to us the information he believes the Government had at that time?

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: I cannot take that question, Deputy because we are out of time. I now call Senator MacSharry.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: I cannot take the judgment question that Deputy Higgins just asked.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: That is a leading question.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: The Deputy could just ask how the banks behaved.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: Professor Connor is the witness and can say whatever he likes.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: This is a leading question. Just ask the question.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: The Deputy is out of time.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: You are not to, although you can name institutions.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: I advise Professor Connor to be mindful. In the nexus phase, we will deal specifically with individuals from the financial institutions. I would not advise him to name individuals, but he can base his response on evidence in terms of behaviour and attitudes in the banks.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: Deputy, you are moving into individual territory and also into matters that might be the subject of a criminal investigation, so I will pull you back from that area and ask you to change your line of questioning.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: The Deputy is over time. Will he put his question?

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: I want to move on to deal with a couple of matters. In Professor Connor's deliberations today he spoke about net foreign borrowings and the proposal that Irish banks should have contained or limited these at that time; I assume that in terms of a recommendation he would be making that going into the future as well. Could Professor Connor explain to the committee how that can happen, given...

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: That is not the question I am asking Professor Connor. I am asking him whether this can actually be done under existing European law?

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: Professor Connor spoke at length this morning about illiquidity and solvency. In general terms, in any given country or at any given time, should a Central Bank and a financial regulator be cognisant of the solvency of the banks under its remit? Should that be part of its day-to-day job?

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: Was that behaviour visible during the crisis period?

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: I want to touch back upon the issue of ELA because this has been referred to by a number of different witnesses so far. Was ELA provided to the Irish banks after the guarantee?

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: Given Professor Connor's comments this morning that two of those banks were insolvent prior to the guarantee - one would then assume that they remained insolvent after the guarantee - how was it that the ECB was able to provide ELA? The rules of ELA are very clear with regard to solvency; money cannot be given to insolvent banks.

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: Can Professor Connor expand upon that? Did the provision of ELA after the guarantee reflect the structure of ELA's intended use?

Committee of Inquiry into the Banking Crisis: Context Phase (25 Feb 2015)

Ciarán Lynch: Was the provision of ELA after the guarantee in line with its intended use?

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