Results 10,041-10,060 of 27,945 for speaker:Michael McGrath
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Thank you very much, Chair. You're very welcome, Ms Nolan. Can I start by asking you, from 1998 to 2003, you were principal officer dealing with the IFSC, as I understand it?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Can you outline your responsibilities and duties in that role, please?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Sure, okay. You said in response to Deputy O'Donnell just a moment ago that the overall net cost of the banking crisis will effectively be the money put into Anglo Irish Bank. Can I just ask you your view on some of the work that was done in Project Atlas by PwC? I mean, for example, in February 2009, they produced a summary report of three previous reports that they had conducted into...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----decisions that Government were making and it was projecting-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----that Anglo would, even in the most stressed scenario, would have achieved the minimum capital requirement by September 2010 and the outturn was a €30 billion bill?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: In September 2010 the Government made a decision on the strategic future of Anglo to separate it between a funding bank to hold deposits and an asset recovery bank. What other options were being considered at that time, because we know the management of the bank, for example, were putting forward an alternative model which would have seen a surviving bank emerge, as such, from the carcass of...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Yes.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay. And then if I take you to January of 2011, and it's in core booklet Vol. 1 of your own booklet, and this is a note on the sale of Anglo and INBS deposit books.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Sorry, 123, page 123 of Vol. 1. So it's a note for the Minister on 28 January 2011, and this is when the sale of the deposit book for Anglo and INBS was being examined and there seemed to be an amount of pressure from the troika to press ahead with-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----the disposal of the deposit books as well. Even though, on the top of page 124, it says, "As yet we do not know how to remain in combined entity is to be funded", and yet there seemed to be pressure to proceed on that basis. But, subsequently, on page 126, it says, "Anglo has requested us to consider an "orderly" sale process rather than the more immediate sale process currently...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay. So they were disagreeing with the approach of-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----the Government to sell the deposit book, which actually happened subsequently in February 2011.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: The deposit book of Anglo and INBS was transferred-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----to AIB and Irish Life and Permanent.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay. And what was their logic in opposing that strategy?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay, we will.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Right. So even at that stage they were still holding out the hope of resurrecting a surviving bank from Anglo?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: Okay. We heard from Governor Honohan last week that by November 2010 the total amount of ECB support for the Irish banks normal liquidity and ELA was €131 billion, of which ELA was €45 billion. He said that the ELA was effectively State guaranteed, that it was underpinned by some form of a letter of assurance-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: -----from the Minister. Is that the case?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (1 Jul 2015)
Michael McGrath: So, there was an effective State guarantee in place of €45 billion of ELA to the ECB-----