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Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: And you told us earlier that Bank of Ireland was the only banking client?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: Okay. And the Department of Finance and the Taoiseach's Department, were they clients of yours?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: So you didn't have a conflict of interest?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: Just the last one then. When Mr. FitzPatrick and Mr. Drumm came to see you, were they trying to get you to assist in the sale of Anglo?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: Okay. Thank you very much.

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: Thank you, Chairman. Thanks for coming in, Mr. Browne. The Anglo annual report for 2007 on page 3 shows that over the period 2002-7, profit before tax increased by 376%, earnings per share by 363% and total assets by 398%. Do you think that these levels of growth were prudent or sustainable in the context of the level of competition in the Irish lending markets during that period?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: I'll give it to you again. I must have spoken too quickly. The Anglo annual report for 2007 shows that over the period 2002-7, profit before tax increased by 376%, earnings per share by 363% and total assets by 398%. And then the question was: do you think that these levels of growth were prudent or sustainable in the context of the level of competition in the Irish lending market during...

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: And then were those levels of growth ... do they imply that the pursuit of growth was affecting credit quality and lending standards?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: In Vol. 1, page 37, Mr. McAteer and Mr. Moran sent a memo to the board in 2007 - "High growth banks seldom die of old age". They say, "A key balancing act for us is to impress upon the market that Anglo's growth is delivered in a measured and conservative manner, without loosening our credit standards." Isn't your evidence to Deputy Doherty and Deputy Higgins that there were 92% exceptions...

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: But didn't Davy Stockbrokers and Merrion Stockbrokers in early 2007 and about a year later put the shares as overvalued by two thirds?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: And a reflection that this model was unsustainable because it was based 88% on property, following a property boom which was ... when the bubble was bound to burst, wasn't it?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: But did you ever get your lending share to industry even into double digits?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: Did you ever get the share of the loan book in industry above 6%, 7%, 8% even? It was 88% property. You were a monoline bank.

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: And were you aware of the literature that, you know, fast growing banks as the quote that they gave at the board meeting-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: They do come to an end because it's-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: -----it's not solidly based.

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: So were you surprised, after you left Anglo, that it did collapse with 61%-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: -----discount-----

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: ----- when it transferred to NAMA?

Committee of Inquiry into the Banking Crisis: Nexus Phase (9 Sep 2015)

Sean Barrett: The St. Patrick's Day massacre, did that cause you to change your views?

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