Results 9,261-9,280 of 16,537 for speaker:Brian Lenihan Jnr

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: I will be judged on this matter by the quality of the people on the panel. That is the key point. Their contribution and record regarding their capacity to act in the public interest will be the judge of their ability. Deputy Alan Shatter raised the issue of lending policies and the treatment by banks of those who get into repayment difficulties. This is covered in paragraph 26 which...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: We can apply elements to it but there has to be a careful ring-fencing of the operation to its presence in the Irish economy. That is the whole purpose of the ring-fencing element of the scheme. Paragraph 50 provides: A covered institution shall manage the business of its group at all times with a view to furthering the purposes of this Scheme [and] the Minister may require certain...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: That is a fair question but the whole point about the scheme, if one examines its contents and the statement already made by the regulator concerning the implementation of the scheme, is the intense degree of supervision that we are now exercising in the banking sector. The Deputy is right to say that is inseparable from the character of the guarantee we have given. We have to exercise...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Deputy Feighan asked about profile statements by financial institutions, breaking down their lending between different sectors in the economy. In fact, they have published such information in the past. Under the scheme it would be possible to require the publication of such information. It does not present any difficulty. One cannot assume that a particular sector is toxic in its...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: The more important point raised by Deputy Ned O'Keeffe — and I agree with him — is the importance of the sub-committees that deal with risk assessment, auditing, remuneration, and credit and risk committees of the institutions. Under this scheme I have the power to appoint persons to observe all those meetings. That is a critical power in this scheme.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: There are sub-committees, as the Deputy well described for us, and under this scheme we have powers to send persons to attend all their meetings. Deputy Durkan asked a number of questions which, I must confess, I could not quite fathom. The regulator is recruiting 30 additional staff to assist him in the intensive supervision of the financial sector.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: An investigation has commenced. The regulator has engaged a firm of auditors to assist him with that.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: The regulator has engaged a firm of auditors to assist him in the relevant investigation and the information has been put at the disposal of my officials.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: The audit is under way for several weeks. To clarify, I am not investigating the regulator.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Deputy Coveney asked about the oversight reports. These will be commercially sensitive documents and the information contained in them cannot be publicly disclosed for that reason. The Deputy also asked about the balance struck in the scheme and whether the State has too many powers in the absence of an equity participation. It is true that the State does not have an equity participation...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: I accept we could have looked at that.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: We could have considered requiring of the banks a participation in equity. However, as I said in the House when I put through the Bill, the best course of action at this stage is to seek cash from the banks in return for the sovereign guarantee they will receive.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Yes, but we have not come to the stage of nationalisation in this legislation.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Once there is State participation in the shareholding of a company, the entire direction of that company is exposed to the type of political pressures we have seen in the past.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: I am not ruling out other ways forward in the future. I am saying, here and now, that the decision I took in regard to this guarantee was that we seek cash and the presence of directors on the board in securing the public interest. That is the balance struck in this scheme.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: There is a provision in the scheme for establishing a committee to deal with that. Deputy Quinn raised an important point in asking whether I will consult with the leaders of Fine Gael and the Labour Party prior to the selection of the appointees both to the panel and to the remuneration committee. The answer is that I will. I am happy to do so. The strength of the participation in the...

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: In the grave crisis which the banking system presented on 29 September and in the days leading up to that, the Governor of the Central Bank and the chief executive officer of the Financial Regulator were pillars of strength.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: The Governor participates in meetings with his colleagues at the European Central Bank. His ongoing liaison with the president and members of the governing bodies is of great importance to the State. There is an issue of continuity in terms of the stability of the financial system. That is very important.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: I refer to continuity in terms of the preservation of the stability of the financial system, not the "warts" of the system to which the Deputy made eloquent reference earlier.

Approval of Credit Institutions (Financial Support) Scheme 2008: Motion (17 Oct 2008)

Brian Lenihan Jnr: Deputy Deenihan asked about the audit process. The auditors are subject to professional supervision and standards of their own. We have provided in the scheme for the appointment of an observer on the audit committee of the relevant institutions.