Results 8,461-8,480 of 16,492 for speaker:Ciarán Lynch
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: I will bring in Deputy Murphy presently. Professor Kane, by your estimation, how many too-big-to-fail banks exist at present? How many of them are located in Europe and the US?
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: I wish to make an intervention for a moment. These Houses examined the role of public interest directors some years ago at the finance committee. There is no such thing in Irish law, whatever about US law, as a public interest director. The State can appoint someone to a bank in the title of a public interest director, but under the law and the Companies Act that person, as a director,...
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: Deputy Murphy was also making a point on which I ask Professor Kane to place some shape before I move on to the next questioner. Professor Kane is a great man for giving an analogy and using metaphors and comparative descriptions. These provide very good imagery for his presentation. He uses the term "regulatory capture". What does he mean by that?
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: What Professor Kane is naming is a process whereby senior public servants in the regulatory structures are going to work with major players and perhaps too-big-to-fail institutions in the private sector.
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: To conclude this section before we go for a break, Professor Kane has written extensively on banks that are "too big to fail" and "deposit insurance and other safety net methods" in the context of the United States. To draw him into the European context, does he think that executives in European banks prior to 2008 believed they would be rescued by governments if they got into trouble?
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: Would it be Professor Kane's understanding that the difficulties they got into were underpinned by their own belief that they were too big to fail and that there would be government intervention?
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: Thank you, Professor Kane. I propose that we suspend the sitting and resume at 11.15 a.m. Is that agreed? Agreed.
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: We will now resume our discussion with Professor Edward Kane. The next contributor is Senator MacSharry.
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: The Senator can ask one last question.
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: The Senator is out of time. Professor Kane touched on the banks positioning themselves to pre-empt or deal with a future crisis. Basel III is one example where greater capital requirements are now required to be met. Some academics like Amante and Helwig argue that capital adequacy regulations would work better if firms were required to have considerably higher equity levels. What is...
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: The United States has a single federal structure running across all states. In his earlier response Professor Kane indicated that the difference between Europe and the United States was there were individual member states and that the financial infrastructure was not in place because Europe was not a federal political union. However, central banks in each country have the capacity to put...
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: I will give the Deputy time to conclude his two last questions, if he wishes to add anything.
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: What was Deputy Higgins' earlier question?
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: In your earlier comments, Professor Kane, when you talked about nationalisation of an Irish bank, were those remarks made in the context of Anglo Irish Bank?
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: To use the professor's motorway and traffic analogies, crises have two aspects: the crash and the emergency services that come afterwards. There is the structure of the emergency services and the behaviour, obedience to, or ignoring of, the rules of the road, that caused the crash. Can he elaborate on what he calls the “seat-of-the-pants” policy making at the height of the...
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: I would like to draw you out on the consequences of that seat-of-the-pants approach. When a country experiences its own crisis, goes to look at where this happened in the past and how a crisis was managed in another country and starts to model from that, are you saying there are flaws in that modelling that are not then known to the country that may be mirroring it?
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: AA is like that. Recovery is all about 28 days and ten-point programmes. Can I move that on to the final situation with regard to seat-of-the-pants policy making? Professor Kane has written extensively about banking guarantees and blanket guarantees. Can he cite an example where a guarantee was flawed in its design and where that type of model was used in another jurisdiction repeating...
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: This brings me to my final question to the professor. Given that there has been a very extensive global crisis and a huge crisis across the European Union, particularly among members of the eurozone, does the professor think the European institutions at both a macro and a micro level, including the European Central Bank and the Commission down to the individual central banks of the member...
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: Why not?
- Committee of Inquiry into the Banking Crisis: Context Phase (28 Jan 2015)
Ciarán Lynch: I will conclude with the two lead questioners, Deputies Michael McGrath and Eoghan Murphy.