Results 9,481-9,500 of 16,537 for speaker:Brian Lenihan Jnr

Credit Institutions (Financial Support) Bill 2008: Committee Stage (Resumed) (1 Oct 2008)

Brian Lenihan Jnr: I hope to give a comprehensive reply to what, in substance, has been a second, Second Stage debate on this Bill. Some moments ago I was asked about the assets position by Deputy Tom Kitt and I have here the National Treasury Management Agency estimate. This states that the guaranteed liabilities of the relevant banking institutions are estimated to be €440 billion and the assets are...

Credit Institutions (Financial Support) Bill 2008: Committee Stage (Resumed) (1 Oct 2008)

Brian Lenihan Jnr: Yes. This means the assets exceed the guaranteed liabilities by a figure of €80 billion. That is the National Treasury Management Agency estimate. The most pessimistic economist in the State gave his views about the impairment of assets on the national broadcaster yesterday evening. His estimate of the impairment was far lower than that figure of €80 billion. I do not accept any...

Credit Institutions (Financial Support) Bill 2008: Committee Stage (Resumed) (1 Oct 2008)

Brian Lenihan Jnr: We can deal with that matter when that section comes up this evening — we are on Committee Stage. The maturity dates for the loans were becoming tighter and tighter for all of the Irish financial institutions and that was the particular crisis about which they were concerned last Monday evening. Regarding the question of Ulster Bank, which was raised by several speakers, it is important...

Credit Institutions (Financial Support) Bill 2008: Committee Stage (Resumed) (1 Oct 2008)

Brian Lenihan Jnr: The whole question of quality of management in regard to the banks is something that will have to be examined in the implementation of this legislation. Checks on remuneration approaches, which reward short-term performance and excessive risk-taking, must be installed in financial institutions. As I said a few moments ago, the State is going in deep here. We are entitled to insist beyond...

Credit Institutions (Financial Support) Bill 2008: Committee Stage (Resumed) (1 Oct 2008)

Brian Lenihan Jnr: I am talking about personal borrowing, Deputy Higgins. I am not talking about corporate borrowing.

Credit Institutions (Financial Support) Bill 2008: Committee Stage (Resumed) (1 Oct 2008)

Brian Lenihan Jnr: If I could be allowed reply to the debate. A further issue that must be examined in the implementation of this legislation is the promotion of corporate social responsibility. A careful assessment of the risk characteristics and the sustainability of new financial products is another matter which the regulator will have to raise with the credit institutions. We must ensure the highest...

Credit Institutions (Financial Support) Bill 2008: Committee Stage (Resumed) (1 Oct 2008)

Brian Lenihan Jnr: That is good legal advice. We spend a great deal of time in this House putting our aspirations into legislation. What I want to do with this legislation is translate what we all want to see happening in the banks into action. Not aspirations, action.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: I join in the tributes paid by the Cathaoirleach and Members to the staff of the Houses of the Oireachtas who enabled us to function throughout the night. I refer to both the staff of the Seanad and other members of staff who have been of great assistance to us in completing our business. I pay tribute to certain officials associated with the preparation of the legislation. I have had the...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: Nothing prevents the annual report being examined by the Committee of Public Accounts or the Committee on Finance and the Public Service. Nothing, subject to Oireachtas Commission approval, stops those committees from obtaining expert advice or an outside assessment of the report submitted to the Houses. All that can happen. One does not need an Act of the Oireachtas to say it can happen.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: I do not understand this concept of an expert oversight board because I thought my expert oversight board was Dáil Éireann.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: The Oireachtas has the capacity to do that.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: This is the amendment that seeks to provide in section 6, without prejudice to section 6(1), that the obligations of a credit institution in receipt of financial support shall include an obligation to take all measures——

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: My apologies, Senator Kelly, I have mistaken the numbers in my brief. The section includes: "Financial support may be provided under this section in a form and manner determined by the Minister and on such commercial or other terms and conditions as the Minister thinks fit." Of course the expression "or other" must be included because the Minister needs power in respect of prudent lending...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: I have examined the amendment and the issue raised is an important one. We need our community to have access to the credit and do not want people to resort to services provided by those who require high interest. Section 6(5) provides for the preparation of a scheme relating to these issues, the terms and conditions relating to the granting of a guarantee. The Minister has a wide...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: The purpose of this amendment is to substitute a positive resolution process in respect of the scheme for financial support to guarantee credit institutions. This amendment, signalled in the Dáil earlier this evening, reflects the importance of ensuring that both Houses of the Oireachtas have an opportunity to consider and endorse the scheme dealing with key requirements for financial...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: The House can accept or reject it, as is the normal arrangement.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: This is an interesting proposal and was tabled in the Dáil. The State intends to draw up the scheme, have it approved by each House of the Oireachtas and then conclude individual arrangements with each financial institution. The terms of the arrangements will be confidential because they are commercial documents. The guarantee referred to in the Senators' amendment is an entirely different...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: Senators are so anxious to discuss these doomsday scenarios that I decided to bring them nearer to them.

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: I did say in the other House and I will confirm it in this House that it would be the policy of the Government to follow that course in the event of a doomsday scenario. That is what one would do, obviously, because the State would want total effective control. One of the points made about moral hazard is that those who take risk in the bank should suffer in the event of failure. Of...

Seanad: Credit Institutions (Financial Support) Bill 2008: Committee Stage. (1 Oct 2008)

Brian Lenihan Jnr: The taxpayer would have to be safeguarded in that situation.