Results 15,941-15,960 of 16,537 for speaker:Brian Lenihan Jnr
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: Yes. Senator O'Toole also raised the question of de-listing. There comes a point under the terms of the rules themselves where the degree of State investment and participation would result in the entity being de-listed.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: It is in that context the institution would be required to de-list. The State has no ambition to have banks automatically de-listed from the Stock Exchange but if the terms of the exchange require it to be de-listed, it is necessary for the Minister to be able to require the bank to do it.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: Yes.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: Yes, and that is crucial. There was an entertaining exchange earlier about the relevant community legal provisions. That is why we have sought to mirror those provisions in so far as possible in this legislation. By mirroring the provisions in this legislation, we are ensuring a degree of international recognition for the High Court orders to be made under it.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: Yes.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: I welcome Senators' interventions on the Bill. I should not comment on the other House but there was no such similar debate there. On confidentiality, the Minister would not notify the institution but would go straight to court for confirmation of the order. The purpose of the confidentiality subsection comes from the possibility of the Minister making an assessment that confidentiality...
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: The provision relates to the variation of an initial or primary order. If there is a technical flaw in the order which requires urgent amendment, the Minister may apply to the court ex parte and without notice. The purpose of the section is to allow the Minister to apply to the court to alter a direction order if he or she is satisfied that the alteration is necessary to achieve the...
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: The circumstances defined for an ex parte application are "urgent circumstances". If one has to apply with notice, one must give notice of the proceedings. There may be urgent circumstances where a Minister may wish to apply on his or her own motion without notice to another party. The court will then have the Minister's application and determine whether it is of sufficient urgency to be...
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: It is not envisaged that there will be an immediate exercise of the powers conferred by this section.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: The State has its own effective management teams in operation in Anglo Irish Bank and Irish Nationwide Building Society. This section was being prepared in any event for the resolution legislation. It is considered to be a power which is of considerable value. It can only be exercised in exceptional circumstances or with the consent of the relevant institution. Under section 20, the...
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: I confirm that is the case. When I stated the special manager must act in the best interests of the bank, I meant he or she must act in the best interests of the bank in the context of the legislation rather than in the context of the traditional fiduciary arrangements or Stock Exchange character of the bank. This is made clear by section 20(1) which states: "The special manager of a...
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: As far as I am aware, a special manager cannot be compelled to attend before an Oireachtas committee. Perhaps Senator Donohoe will refresh my mind on the section in question.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: My understanding is that, in order to comply with the requirements of natural justice, a reasonable period of time must be given to a person who wishes to raise an objection to the course of action to be followed. There is a balance to be struck in terms of the time allowed. Ideally, the time allowed would be 24 hours, but, in order to afford an opportunity to a person affected by the...
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: As I understand the position, the initial period is six months, but it can be extended under the section.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: Adam and Eve received a hearing from the Almighty before they were expelled from the Garden of Eden. It is very difficult, therefore, to eliminate the concept of natural justice.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: A supervening event.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: A number of points were raised. Senators O'Toole and Donohoe referred to shareholders. Decisions on the shareholders can be taken by the manager. That is part of the European framework that is being developed in this area. With regard to confidentiality, one must consider the relevant section in conjunction with section 72 which, in turn, refers to the Schedule. In this regard, the...
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: This is a specific information gateway for financial stability purposes.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: Of course, it does. The special manager is in the same position as the employer in the institution concerned and can issue whatever direction is required.
- Seanad: Credit Institutions (Stabilisation) Bill 2010: Committee and Remaining Stages (16 Dec 2010)
Brian Lenihan Jnr: The special manager takes the place of the board. Section 48 is related to the section in question and deals with the issue of public interest directors, on which Senators have had a recent discussion. Section 48 provides that "the directors of a relevant institution shall have a duty to have regard to the matters mentioned in section 4(f)", namely, to facilitate the availability of credit...