Results 25,321-25,340 of 35,894 for speaker:Pearse Doherty
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Page 97, which talks about construction and property accounted for 359% of our core ... of our tier 1 capital at the end of September 2007, up from 345% three months earlier, and 275% at March 2006. Moody's also gave you a grading at that time in relation to property concentration and the grading was D. Can you outline to the committee how many grades does Moody's have or grades do Moody have?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Well-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: If we look at Moody's website for example, we will see that they grade banks from A to E. Would that be correct? Would that be your understanding?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: So a D rating would be quite low, would that be correct?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: And you also received a D rating for borrower concentration, meaning that you were lending too much to individual ... individuals. Would that be a correct assessment?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: And you go on to say that you ... selling off some of the loans of the top 20 borrowers would help your rating with Moody's at that time.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: The point I'm making is you-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: But you've identified ... to deal with your concentration risk, you've identified the top 20 borrowers as a way of reducing your concentration risk.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: So would that suggest that your bank, under your guidance, lent too much to individual ... to certain individuals that increased the concentration risks to individual borrowers?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Okay-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Okay, I appreciate that. I'm going to move on because time is tight. You carried out due diligence on Irish Nationwide at the beginning ... at least it's reported that this was done prior to 7 September. Why did Bank of Ireland carry out due diligence on Nationwide?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Yes.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Okay. I'm going to have to quote from AIB's board minutes of 7 September 2008. This is in reference to the meeting-----
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Is AIB board minutes of September ... 7 September 2008. They are in document AIB - C3b, Vol. 2, page 41. And this is in reference to the meeting that Bank of Ireland had with the regulator, with AIB, with Irish Nationwide, looking for liquidity of €2 billion each, from each institution, which you refused to give without a Government guarantee.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: And in that, it says that ... in that, it says that Bank of Ireland had carried out due diligence on Irish Nationwide and that there was an estimated 30% to 50% estimated by Bank of Ireland. The quote is, "The quality of the loans was suspect and could require write-downs ranging from a benign 13% estimated by the FR [Financial Regulator], to 30%/50% estimated by Bank of Ireland, which had...
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: The key question is ... and you've answered this, that you never carried out due diligence, you never considered taking over Irish Nationwide, is that correct?
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Okay.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Okay.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: That's fine.
- Committee of Inquiry into the Banking Crisis: Nexus Phase (30 Apr 2015)
Pearse Doherty: Okay, that's fine. I'll just in last question I have, I want to talk about, again, the night of the guarantee. The minutes that suggested you had a draft guarantee would've been approved by the members at a later meeting that were present at the original meeting. Would that be correct?