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Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: Technical people in March 2010 and March 2011 got it 100% wrong on both occasions. That is my fear. Our best argument for getting capitalisation from the euro system through creditor write-down for all the banks - the dead ones and the survivor ones - is by getting the picture accurate, making the provisions right and substantiating it with what will be arriving down the tracks in the next...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: I say that specifically for this reason: to get the ELA owed by the IBRC written off. This would mean the promissory notes could be torn up. In the case of AIB - and the Bank of Ireland may be too foggy-headed at the moment to articulate it - it can do it. AIB can articulate that for the triangle of banks - the two big remaining banks and Permanent TSB as a smaller add-on - to get the...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: You did that before you went bust.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: Mr. Boucher is the servant of the board. That is simple. It is a fact and the law.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: For the record, I am very disappointed that I get five minutes compared to 12 minutes for other speakers.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: It is not a criticism; it is an observation. The witnesses are welcome. Yesterday, I said I had a feeling of unreality listening to contributions. It was akin to the film “The Truman Show”. Today, I feel I am in a fog. The reason is that this is the first opportunity to have an appraisal of the job of national interest directors on the board of Bank of Ireland. They...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: Yes, it is €105 billion gross and €7 billion worth of provisions. Of the €105 billion, €81 billion or 74% is in mortgages, buy-to-let loans, development land loans, development loans, property investment loans and the building construction sector. To date, the loan provisions amount to €7 billion.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: This is the key to the bank’s survival.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: This is absurd. As a proportion of €105 billion, €7 billion is under 7%.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: Certus, the loan work-out vehicle for Lloyds Bank has written off €22 billion of the €40 billion peak gross loans that the Bank of Scotland (Ireland) wrote in the period up to 2008. That is more than 50%. The bank must look long and hard into its heart, heavily diluting the last PCAR in March 2011. Reference was made in Mr. Walsh’s submission to the CBI-mandated...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: They are the PCAR people. They got it wrong twice in conjunction with the CBI.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: Chairman-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: On a point of order-----

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: Does Deputy Fleming wish me to help him?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: Excuse me, Chairman. For clarification, are they thousands?

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: I ask only because it was not clear.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion (20 Dec 2012)

Peter Mathews: Okay.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Peter Mathews: Acknowledging the point about directors' duties and public interest, I would ask Mr. MacSharry to report in conversation with the Minister, after carrying out a robust exercise across the loan book, on what update provisions would be needed to meet the collectability of the debts. It should not be a case of waiting on the never never. It should be realistic and get an idea of the new...

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Peter Mathews: I am asking the public interest directors to put that case, to get the information and facts calibrated and bring it to the Minister.

Joint Oireachtas Committee on Finance, Public Expenditure and Reform: Role and Contribution of Public Interest Directors in Financial Institutions: Discussion with Permanent TSB (19 Dec 2012)

Peter Mathews: The need is for public interest directors to recognise that and ask for it.

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