Results 14,641-14,660 of 16,537 for speaker:Brian Lenihan Jnr

State Banking Sector (30 Sep 2010)

Brian Lenihan Jnr: I will have to provide that information for the Deputy and will arrange to do so. Clearly, in the case of Anglo Irish Bank no one remains. In the other banks, as I said, there has been a substantial turnover of directors.

State Banking Sector (30 Sep 2010)

Brian Lenihan Jnr: It is a matter, in the first instance, for the board of the particular institution to decide what is in the best interests of that institution. Government policy is that persons of the highest competence and expertise should be appointed to senior management positions. It is a matter, in the first instance, for the board. One matter which we should discuss on an all party basis, given the...

State Banking Sector (30 Sep 2010)

Brian Lenihan Jnr: I am not aware of the severance packages that apply. That is a matter, I take it, for their contractual terms and the remuneration committees of the relevant institution.

State Banking Sector (30 Sep 2010)

Brian Lenihan Jnr: Ní lá fós é, a Theachta. The position is that persons have contractual rights as well.

Other Questions. (30 Sep 2010)

Brian Lenihan Jnr: I think I undertook to allow probing on all questions today.

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: The Deputy will be aware that a statutory instrument which extends the eligible liabilities guarantee (ELG) scheme to 31 December 2010 was approved by both Houses of the Oireachtas yesterday, having previously received EU state aid approval. The following liabilities are classified as eligible liabilities for the purposes of the ELG scheme: deposits; certificates of deposit; commercial paper;...

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: I can give the Deputy figures for the total covered liabilities for each scheme, which may be of assistance to him. The total covered liabilities under the original CIFS scheme were €103 billion, of which retail and corporate deposits were €31 billion. The total covered liabilities on the ELG scheme are €153 billion, of which retail and corporate deposits are €121 billion. However,...

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: I never said that.

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: I am somewhat alarmed that the Deputy has introduced the figure of €36 billion to the discussion. That amount relates to senior debt in all of the covered institutions - including Bank of Ireland and Allied Irish Banks, and not just those which are distressed, such as Anglo Irish Bank and Irish Nationwide.

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: I take it the Deputy is not suggesting that bondholders with these institutions should be informed by the management thereof that they should now face a haircut.

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: I want to be clear about the matter.

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: I am trying to assist the Deputy who, I take it, is referring to senior bondholders in distressed institutions such as Anglo Irish Bank and Irish Nationwide where the total amount is substantially less than the figure to which the Deputy refers. I do not act on the basis of my own legal views, I act on the advice of the Attorney General who is the legal adviser to the Government.

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: The Attorney General provided advice with regard to legislative arrangements in respect of the treatment of bondholders in resolution law. His advice is that in the context of such resolution regimes, it is possible - in appropriately drawn circumstances - to give priority to the investment of taxpayers over subordinated debt in a distressed institution. In the case of senior bondholders,...

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: As the Deputy states, "pari passu" is the expression used by lawyers. That is the position. The relevant EU directive on the reorganisation of financial institutions makes clear that in reorganising such institutions one cannot differentiate or create an inequality between creditors. There are serious European and constitutional obstacles in the context of using legislation to effect that...

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: Deputy Bruton raised the matter of negotiation. Of course it is open to any financial institution to negotiate. I was not suggesting anything different. We must be careful with regard to how we use the word "negotiation". When Lehman Brothers collapsed, bondholders were invited to take part in negotiations. It is possible for senior bondholders to enter into discussions or negotiations...

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: I operated a one-man business for a substantial period of my existence so I am familiar with the factors to which the Deputy refers. Subordinated debt clearly ranks behind that relating to other creditors in an insolvency. That has always been recognised. The terms of these instruments often define their precise priority in the event of insolvency. That is the whole point. The Attorney...

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: When one states that one is inviting somebody to enter into negotiations, the outcome depends on how big a gun one is wielding.

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: That is the reality. If one invites somebody to enter into negotiations and one states that one will not pay, an element of coercion creeps into the equation.

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: I used the word "discussion" in substitution for that of "negotiation", which Deputy Burton used. It is clear that discussions take place and arrangements which may be of mutual advantage can be arrived at between financial institutions and senior bondholders. For example, a bondholder might-----

Bank Guarantee Scheme (30 Sep 2010)

Brian Lenihan Jnr: -----agree to a longer term by way of guaranteed deposit.